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How Much Do You Need to Maintain a Comfortable Retirement?

No one wants to live strapped with financial problems, especially during their retirement. The last thing people want to worry about when they get older and weaker is where to get enough money to sustain their daily lives. That is why many people aim for financial independence and security even before their retirement. Sure, you can receive money through superannuation, but will the money you get by your retirement be enough?

Should you even worry about it right now? The earlier you consider your retirement, the better you can prepare, so let this article help you assess your needs while there is still time. That way, you and your aged care advisers can strategise the best way to meet your retirement requirements and help you live a comfortable future life.

How Much Money Do You Need Post-Retirement?

Thinking about what will happen tomorrow is already overwhelming enough. How can you handle assessing your retirement needs then? Well, it all comes down to breaking down the matter into smaller more manageable ideas.

Essentially, your ideal retirement fund should depend on how much you need to spend by that time. It should be based on what you plan to do and how long you want your money to last. Some people plan to do the things they have not had time to do, such as travelling the world, learning new skills, or starting a hobby.

Here are the usual financial concerns of many people during their post-retirement years. See which of the following responsibilities you think you would still have in the future.

On Responsibilities

Unfortunately, financial responsibilities do not end for most. Even after working hard for years, people are still bound to pay bills and other expenses. Which of the following are you more likely to still pay after you retire?

  • Household bills
  • Other family members to support
  • Mortgage or personal loans
  • Other household expenses, needs, and maintenance (such as appliances, cars, etc.)
  • Miscellaneous fees for emergencies

You need to save up enough money for these concerns separate from your everyday and recreational budget. It would be best to assume an approximate budget for each month and multiply it by the number of years you expect. That is how you would know how much savings you want to have.

On the Time Horizon

How would anyone know how long they would live? No one can guess that, but you still need to prepare. Instead of focusing on the length of time, you can view this as how long you want your retirement fund to last. How much will you save, and where do you plan to spend them? This part is where your retirement financial adviser can help you.

Keep in mind that you should consider inflation when making your computations. You also need to know your options to maximise your money. Your financial adviser would suggest other options you can do instead of just relying on your superannuation retirement fund.

They may recommend you start other alternative sources of funds, such as investing your money and growing your portfolio. They will find different benefits and subsidies that can increase your government concessions. More importantly, they will help you transition to your retirement plan and ensure that the strategy will be based on your current financial situation and retirement goals.

So, How Much Do You Really Need?

There is no exact formula to knowing how much funds you would need in the future. You and your retirement financial adviser may come up with a number now, but it could always change in the future. What is important is that you prepare early and make the necessary adjustments. Doing that would help you grow your money fruitfully and let you live a stress-free life.

You would not want to exacerbate financial issues like this after all those years of working hard. Make sure to have an retirement financial planning session with your adviser and let them help you find the best route to save enough money for your future. At Coastal Advice Port Macquarie, our ultimate aim is to help you achieve all your goals for retirement so you can live your best life without having to stress about your financial situation. Book a complimentary initial meeting with us!

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