How much does it cost to live in retirement?
Retirement often sneaks up on you, life can be hectic and time flies when you are busy. With retirement seeming like something that will happen in the distant future many Aussies leave retirement planning too late. Retirement planning usually only gets thought about once the kids are gone or almost gone, a few health issues crop up, work starts offering redundancies and laying people off, or someone you know wants to retire but can not because they can’t afford it. Leaving your retirement planning to the last minute can be a costly oversight which could leave you unprepared and short on retirement funds
The big question on most people’s minds is how much does retirement cost? We often hear stories of retirees struggling and there can be a lot of confusion on the cost of retirement and how much money you will need to live comfortably. This kind of conflicting and often scary information can put people off looking at their retirement plan as they find it daunting. With the right plan retirement things can be easily managed and you can retire comfortably. There are many ways to work around all the hurdles for a comfortable and secure retirement.
The big question on most people’s minds is how much does retirement cost? We often hear stories of retirees struggling and there can be a lot of confusion on the cost of retirement and how much money you will need to live comfortably. This kind of conflicting and often scary information can put people off looking at their retirement plan as they find it daunting. With the right plan retirement things can be easily managed and you can retire comfortably. There are many ways to work around all the hurdles for a comfortable and secure retirement.
At the moment the Association of Superannuation Funds of Australia’s Retirement Standard have worked out, to have a ‘comfortable’ retirement, single people will need $545,000 in retirement savings, and couples will need $640,000. With these figures it is becoming more crucial to ensure you plan early for retirement and plan it well. The great retirement dream of caravanning around Australia or cruising around the world is not out of reach but is dependent on good planning and the right strategy. Getting started early is the key to a successful retirement.
There are many ways to plan for your retirement early on such as ensuring you have a clear retirement spending budget and that you and your spouse are in agreement. An example of this would be an international holiday every year vs. a local holiday twice a year, maintain good physical health to reduce the funds needed for health care and medications as you age, paying off your mortgage earlier, and working on your retirement plan with a qualified and experienced professional.
By using a professional who knows how to not only plan for retirement but is capable of structuring your retirement plan to suit your current lifestyle needs can ease the stress and ensure you are on the right path for your retirement future. Strategies for retirement planning vary but you have many options such as investing your wealth using different investment options or using contribution strategies in the lead up to your retirement to reduce tax and potentially increase your retirement funds.
Are you ready to take the next step in your planning your retirement security? True North Lifestyle can work with you to save toward retirement, invest the right way, and plan the retirement you want. Get started, come and let us help you. Book a free discovery session with our team now.