How Big is your nest egg?
Do you have enought to retire? It’s the big question everyone asks. We all want to know one day we can retire comfortably but the big question is whats that amount that we need? Another way to estimate how much money you will need in retirement is to assume you need 67% (two-thirds) of your income before you retire in order to maintain the same standard of living in retirement. This estimate is only suitable for above average income earners.
- Lump sum amount need to support a comfortable lifestyle 67% 67%
Its estimated the lump sum needed to support a comfortable lifestyle for a couple is $640,000 (or $545,000 for a single person) assuming a partial Age Pension. Its noted that because a modest lifestyle is mostly met by the Age Pension the lump sum required to support it for a single or couple is estimated at $70,000.
How do we reach our retirement goals?
Speak to Grobowski Financial Planning and we will make sure you are in the right direction of hitting your retirement goals. We will work out if your super is on target and sit down and crunch the numbers and discuss your retirement plan.
A rough idea on how much money you will need
Below gives you a rough idea of how much money you need to support a modest or comfortable retirement. It applies for people retiring at age 65 who will live to an average life expectancy of about 85. It assumes you own your home.
Couple - modest
Annual Living Cost $39, 353
Weekly Living Cost $754
Couple - Comfortable
Annual Living Cost $60, 264
Weekly Living Cost $1,154
single - modest
Annual Living Cost $27,368
Weekly Living Cost $524
single - comfortable
Annual Living Cost $42, 764
Weekly Living Cost $819