YOUR SCENARIO

You have been pondering for retirement, and wondering how much you would require retiring comfortably

QUESTION:

How much assets do I need in order to retire comfortably?

ANSWER:

The answer it depends on your own definition of “comforts”. For some, comforts may mean not to worry about foods on the table and roof over one’s head, and for others it could mean flying first-class every time they jump on a plane.

PRO TIPS

It is often suggested you will need around 70 per cent of your pre-retirement income to continue living in the manner to which you have become accustomed to. ASFA suggests singles aged 65 would need around $50,004 to live comfortably, while couples would need around $70,482. Again, comfort is different for everyone.

To put these figures in perspective, the full Aged Pension is currently around $26,689 a year for singles and $40,237 a year for couples. This does not even stretch to ASFA’s modest budget, let alone a comfortable lifestyle.

COMMONS TRAPS

Then there is the ‘known unknown’ of how long you will live. Today’s 65-year-olds can expect to live to an average age around 85 years for men and 87 for women. The challenge is to ensure your money lasts the distance.

Having the income to last will also mean your investment is housed in a more tax friendlier environment/ vehicles. You do not want to have the means of achieving say $70,000 per annum but have not factored tax due to undue planning.

DISCLAIMER

GW Capital Group Pty Ltd General Advice Warning: This advice may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal advice prior to acting on this information.