How much do I need to retire?

This question gets asked a lot.

Rather than answer it, this post simply sets out what that calculation need to take into account.

1. How much do I want to spend in retirement (if it’s less than the Age Pension then I don’t need to save anything at all!)
2. What’s my current balance (including non-super)?
3. Am I married? Age of spouse.
4. Health status
5. Risk profile (to investment risk and the risk of outliving your savings)
6. Current salary and prospects (including spouse)
7. Assumptions for inflation, and stress testing of this
8. Assumptions for market returns, and stress testing of this
9. Assumptions for the age pension rules and payment rates
10. Willingness to downsize if need be
11. Desired bequest for kids
12. Any incoming inheritance?
13. Any part time work (phased retirement)
14. Fees
15. Do I own my own home? Will my mortgage be repaid by retirement?

For those wanting a lifestyle that costs more than the Age Pension (around $25k per year if you’re single) the retirement system passes all financial risk and most decision making onto you, the individual. It’s no wonder the above question needs ‘actuarial’ software to answer (and a skilled user of that software).

Apricot provides you with access to a world-class financial calculator via video meetings to help you configure your ‘big picture’ and what you can achieve. The end product is like a Retirement Safety Certificate – don’t leave work without one!

Call us to book a time for your first meeting with an expert. It’s really easy and you’ll get profound insight into what’s possible in an engaging and enjoyable format. The service only costs $1,500 as we don’t give financial product advice. There are no ongoing fees or retainer. 03 6240 1575