Easy Retirement Achievable With Assets, Investments & Savings
Maintaining a certain standard of living into retirement years is certainly possible with a plan and a strong portfolio of financial resources. Your expectations as you enter and live in retirement for the better part of 35 years will require a certain income. Income can be provided by assets, investments & a pool of savings to draw from.
Part of your retirement may be spent travelling if you have the money to do so. Providing for family members may also be a priority as you are planning for retirement. Either way, money is something you can forecast and limiting your spending can help you plan effectively for future expenses. Pillar Financial can help you plan for your retirement and help you to enjoy your golden years the way you want to, without major sacrifices to your current lifestyle.
The ASFA’s quarterly Retirement Standard report manifests figures that can also give you some perspective prior to retirement and help you plan for future purchases, responsibilities and income needed for living expenses. The Retirement Standard is calculated and published every quarter by The Association of Superannuation Funds of Australia. Research is performed in order to help people prepare themselves financially for retirement and to budget for their future once retired. The report segments retiree financial acumen into two standards of living: comfortable and modest. This enables you to compare your current budget with retirement income requirements and calculate your compatibility with comfortable and modest retirement standards.
The ASFA retirement standard is also divided into two further standards: couples aged around 65 and single persons aged around 65. A couple aged around 65 can be expected to live modestly on $40,739 per year and comfortably on $62,562 per year. A single person may be expected to live modestly on $28,179 per year and comfortably on $44,224 per year. It follows that a single person wishing to live comfortably would require approximately $1.5 million in assets to achieve their goal. A single person with approximately $980,000 could afford to live modestly. A couple wishing to live comfortably throughout retirement would require approximately $2.2 million and a modest couple could survive with $1.4 million to draw from. This is assuming the people above live until they are 90.
The difference between a modest and comfortable standard of living are primarily defined by differences in lifestyle choices. A couple exemplifying a comfortable standard of living could look forward to dining out more frequently whereas a couple representative of a modest lifestyle could look forward to local barbecue evenings with friends and family. However, the range of living standards between the two segments varies from overseas holidays to struggling to pay for heating and cooling in its polar extremes. If you want to be living amongst comfortable lifestyle commodities, it’s best to plan now!
Pillar Financial is open to take your call Monday to Friday, 9:00am to 5:00pm. Call our friendly team on 1300 730 309 or reach out via our contact page to ask what we can do for you as you begin or continue your journey towards retirement.