Retirement; it’s a topic which both scares people and also thrill’s people at the same time (kind of like the Scooby-Doo roller coaster at Movie world). With the cost of living rising lately within this economy and rent for a one-bedroom apartment being over 1,800 a month, it’s hard to say whether the cost of living on the coast has contributed to people retiring much later on in their lives.
There are many factors and variables which come into play when planning for retirement and counting the cost is one of them. For the age of 65-85 group for couples, according to the Association of Superannuation Funds of Australia’s Retirement Standard, to have a ‘comfortable’ retirement, single people will need about $545,000 in retirement savings, and couples will need $640,000. If you’re planning on taking the leap towards slowing down, planning ahead for this goal can be achieved, yet saving is the most vital piece of the puzzle for your future.
Ok, so we do realize that in theory, we have to factor in, how long the person will live, they’re lifestyle and any medical bills that need to be taken into account for. So say you want to retire at 60? The common rule of thumb is that you will need fifteen times the amount for retirement expenses and only thirteen per cent needed if you retire at the age of sixty-five.
So… it’s safe to say money is needed to retire on the coast and a great strategy to achieve this would be saving seventy per cent or more of your annual income. We always suggest growing your retirement savings, your portfolio and investments whilst still in the earlier periods of your life. This is vital to your success as you can not only reach a modest retirement but thrive whilst still doing the things you want to do and having your standard bills paid for. Save to say sipping your favourite cocktail on the beach whilst getting a back rub can still be achieved.
It’s important to note that no matter how old you are it’s never too late to improve your financial circumstances. We can help you achieve your goals at Oasis financial planning to assist you in your retirement plans no matter what your age is a key way to secure your future and retire earlier.