Defining a comfortable retirement
I speak to people a lot about retirement being more than just dollars and cents. Sure, money is important but if you can’t articulate your objectives and goals, if you don’t fully understand what a purposeful retirement means to you, then what’s the point?
At the end of the day, we all want to be comfortable in retirement. And comfort means different things for different people.
Recently, the Association of Superannuation Funds of Australia (ASFA) released it’s latest report on how much a 65-year-old needs to retire comfortably. They even went so far as to provide a breakdown of weekly costs and a budget!
To access the full budget breakdown, click here!
I’m not a fan.
Not only do I think the numbers are misleading, but I also don’t like the message it sends (‘unless you have this much money, you can only lead XYZ kind of lifestyle‘ – what rubbish!), and I don’t like the cookie-cutter approach they are using (every single person is different and has their own unique objectives).
But… it does get people thinking about their own lifestyle objectives and how they want their ‘day-to-day’ to look in retirement. And that is a good thing!
So, what does ASFA say you need as annual income for a comfortable lifestyle in retirement?
$66,725 per year for a couple who own their own home, or
$47,383 per year for a single person who owns their own home.
And what does a comfortable lifestyle in retirement look like according to ASFA?
So that’s the ‘standard’! Your challenge is to define your goals and objectives, understand what a purposeful retirement looks like to you and challenge the ‘standards’ to walk your own retirement path. Your first step should always be discussing your situation with a retirement planning specialist. With the right guidance and education, you will be living your best life in no time!
For a clearer picture of what retirement holds for you, contact us at Collective Wealth Advisers. We tackle today, and tomorrow, together!
- Oct 04 2022