It’s a question that many people don’t ask themselves, or simply put it in the back of their minds as it is too far away to think about. But the fact of the matter is that the majority of us will not have enough to fund our retirement, let alone to the extent of our current lifestyle’s.
Here’s a couple of quick facts to consider:
- The average life expectancy is about 84 years in todays terms. That’s about 19 years after usual retirement age.
- Average budget for someone in retirement in a modest lifestyle is about $450 per week. This is Excluding a mortgage.
Budgets for various households and living standards (June Quarter 2014)
Modest lifestyle – single |
Modest lifestyle – couple |
Comfortable lifestyle – single |
Comfortable lifestyle – couple |
|
---|---|---|---|---|
Housing – ongoing only | $64.27 | $61.70 | $74.49 | $86.35 |
Energy | $43.26 | $57.46 | $43.90 | $59.54 |
Food | $76.16 | $157.76 | $108.80 | $195.84 |
Clothing | $17.85 | $28.98 | $38.64 | $57.95 |
Household goods and services | $26.47 | $35.89 | $74.46 | $87.23 |
Health | $40.71 | $78.57 | $80.77 | $142.55 |
Transport | $96.15 | $98.87 | $143.28 | $146.01 |
Leisure | $73.78 | $109.93 | $223.60 | $306.41 |
Communications | $9.40 | $16.46 | $25.85 | $32.90 |
Total per week | $448.06 | $645.62 | $813.78 | $1,114.78 |
Total per year | $23,363 | $33,664 | $42,433 | $58,128 |
The figures in each case assume that the retiree(s) own their own home and relate to expenditure by the household. This can be greater than household income after income tax where there is a drawdown on capital over the period of retirement. Single calculations are based on female figures. All calculations are weekly, unless otherwise stated. Stats provided by ASFA.gov.au (June 2014)
In order to live a comfortable lifestyle in retirement at age 65, you would need over $1,100,000 in your super to live purely off the capital where you will run out at 84. (Bad luck if you are healthy and beat the odds!)
WHAT ARE YOU DOING TO REACH THIS TARGET?
I realise property is the hot topic at the moment from all the media exposure, but the fact is that it has created wealth for Australian families for generations. I am not here to property spruik, but simply make you aware of this topic and give you an opportunity to talk to the right person to make an informed decision.
Over the past 14 years, I’ve made a very strategic effort to align myself with other services that I trust (and use myself) so I can recommend them to others. One of these is the services of a buyers agent. If you haven’t used a buyers agent before, they work on your behalf to give you advice and find you the right property to grow a portfolio which will fund you into retirement.
I would love to introduce you to my Buyers Agent, and will send you the details once you simply reply to this email. It doesn’t cost you anything, but if you don’t at least consider it and talk to someone about it, it could cost you a lot more than doing nothing!
I’m also happy to talk over the phone on 1800 674 435, so please feel free to call me.