Retirement is one of the significant aspects in everyone’s life. However, without a proper plan, your financial retirement will not be comfortable. Planning for retirement means taking some steps for a better tomorrow. As you need to leave your professional life to retire, you should save a significant amount for the rest of your life. But, how much money will you save for retirement? If you have saved a considerable amount, you can maintain a good living standard in Burnside.
Average amount you need in retirement:
Many Australians need almost 70% of their monthly earnings to maintain their lifestyle. However, planning for retirement is different. It mainly depends on how and when you would retire. Besides, your location and other activities during retirement may affect your decision. If you are eligible for government benefits (Government Age Pension), you will find it easy to prepare for retirement.
Based on Australia’s Retirement Standard, singles should save at least $595,000 for a comfortable and safe retirement. On the contrary, couples need to have at least $690,000 for retirement. This guide is useful for calculating the amount you need for a modest and comfortable life. However, the standards are regularly updated due to the rising cost of utility bills, food, and other items. You should also consider the cost of your clothing, health, communication, travel, and personal items.
ASFA has tried to calculate the amount you need for a comfortable or modest lifestyle when your age is above 65. It is considered that the average lifespan of Australians is 85. Moreover, it assumes that retirees have their own homes and have good health. Only Age Pension is not enough for a modest lifestyle because it meets just the basic needs. So, you should focus on other factors for determining how much you need for retirement.
What should you consider for estimating your retirement amount?
Think of your retirement goal:
The most important step for retirement planning is to identify your goal. What type of retirement outcome and lifestyle do you desire? Because of the advancement in the healthcare sector, the average lifespan of people has increased. It is better to have an income stream to have a stress-free retirement.
You may start planning for retirement early. The longer time you have, the better you get ready for retirement. Sometimes, illness, retrenchment, and several other factors may cause you to make the plan early.
Determine how much you need as a retired person:
Your regular buying patterns may change when you retire from your job. Many Australians like to spend less after getting retired. Still, you need to replace your furniture and clothing during your retirement years. If you want special assistance during that period, you can plan to join one of the Lifestyle Communities Burnside. Calculate how much you need to become a member of a retirement community. It will help you enjoy a good lifestyle.
So, these tips will allow you to calculate the amount you need for retirement.