How Much Will I Need to Retire?

What Does Retirement Really Mean to You? Let’s talk money, purpose and lifestyle.

When planning for retirement, one of the first questions people ask me as a financial advisor is: “How much will I need?”

While there’s no single answer, the Association of Superannuation Funds of Australia (ASFA) provides some guidelines based on different lifestyles:

A comfortable retirement for those between 65 and 84 years of age costs around $73,077 per year for couples and $51,805 per year for singles, while a modest retirement is said to cost $47,383 per year for couples and $32,665 per year for singles.
If you’re aged 85 or older, the ASFA states that a comfortable retirement may cost around $67,714 for couples and $48,971 for singles, while a modest retirement could cost $44,152 for couples and $30,838 for singles.

These figures assume you own your home and are relatively healthy. But it’s important to remember that what’s comfortable for one person might be too little (or too much) for another.

A Question Work Considering:

Do You Even Want to Retire?

For some, retirement is the ultimate goal. For others, it’s about financial freedom – the ability to work on their own terms rather than stopping completely.

I know people who work for 32 weeks a year and take the rest off, simply because they love what they do. Others ‘unretire’ by starting a business, freelancing, or shifting to work they find more fulfilling.

The idea of slowing down completely can feel unsettling, especially if working has been a large part of your life, as it is for most. In fact, it’s not uncommon for people to struggle with the transition.

Before crunching the numbers, ask yourself: “What does retirement mean to me?”

Do you want to travel every year?
Would you prefer to keep working part-time or seasonally?
Are you passionate about volunteering or mentoring?
How important is staying physically active and socially connected?

Staying Active and Engaged in Retirement

The Australian Seniors Advantage Group suggests that staying active and social in retirement is essential to wellbeing. Joining community groups or clubs, staying active with exercise groups and pursuing interests and hobbies are all said to contribute to a positive retirement experience.

Some farmers or business owners, for example, may choose to stay involved in their operations in a reduced capacity, helping out during busy seasons or mentoring the next generation. Others take up entirely new interests – whether that’s woodworking, gardening, travel, or even starting a small business.

This article by The Guardian shows that adults aged 65 and older who volunteer experience significant mental and physical health benefits, including reduced loneliness and better overall health.

The Bottom Line

Retirement is unique to each person. The real question isn’t just “How much do I need?” but also “What do I want my life to look like?”

If you’re thinking about retirement or estate planning, I’d love to help you explore your options. You can book a 15-minute appointment with me here.

*This blog/article is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is suitable for you and your personal circumstances. If relevant: Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

Ready to talk retirement?

Matt has years of expereince helping people just like you create a healthy and prosperous retirement. Book your free 15-minute call using the link below.

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