What’s Your Retirement Number?

Everyone wants to have a happy retirement, and everyone wants to spend their retirement differently. From your life changing ambitions to smaller, personal goals, your retirement is entirely up to you. Your retirement number is how much money you’ll need to accomplish your goals by the time you retire.

There is no age you must retire by, and choosing to retire isn’t only influenced by your finances. Your state of mind, how you spend your time, and your goals all play a big part.

Australia has one of the highest life expectancies in the world, and it’s likely to increase well into the 90’s over the next 40 years.1 Depending on your age, you could be looking at around 30 years in retirement.

Whatever your retirement goals are, it’s important to be prepared financially. Whether you want to travel, move house, care for family, or keep working part time, it all hinges on having the money saved to pay for it.

Assuming you own your own home, recent research shows that to retire comfortably, couples will need about $640,000 as a lump sum to retire on.2 Worryingly, a recent survey by Roy Morgan shows many Australians aged between 50 and 64 may not have the amount they need to retire on at 65, and many remain in debt!3

It can be easy to feel overwhelmed by these figures, but your finances may be in better shape than you think.

There are many things you can do now to help prepare for your retirement. Both financially and mentally, these steps will help you think about managing your income, and suiting your spending to your changing needs. To get you started, here is preparing for your retirement in 5 steps:

1.Develop concrete retirement goals.

Too many options can make planning difficult, so it’s important to get a clear picture of the lifestyle you want once you retire. Knowing how you want to spend your time, and where you want to live will give you greater clarity when considering your options. If you have a partner, compare lists, so you’re both on the same page.

2. Simplify your finances. 

It is better to have your finances organised sooner rather than later. Starting now, you can:

  • Track your spending, working out where you can make savings.
  • Get your super sorted, so you can retire on as much as possible.
  • Take advantage of any government incentives you may be entitled to.

www.moneysmart.gov.au is a good places to find further information.

3.Reevaluate your budget.

Take a realistic look at how you can achieve your goals and live the lifestyle you want to live, within your budget. You may need to reassess your spending on luxuries like eating out, or rebalance your spending on necessities, so you can enjoy bigger things in retirement, like holidays.

4.Put your plan together.

Once you are clear on your retirement goals, making a plan is the next step you should take. It can make all the difference!

5.Talk to a financial advisor – like us!

Most of us need some help to create our retirement plan, and keep ourselves accountable. Making the most of your super, investments, government entitlements and incentives can be difficult on your own. Sharing the load will make it easier on you, allowing you not to worry about your retirement.

We can help you explore the cost of your goals, and work out what your lump sum needs to be, including helping you:

  • Work out how much you’ll need to live on.
  • Work out how you can create an income in retirement.
  • Understand your future expenses.
  • Examine your superannuation savings.
  • Understand your living options, and find ways to keep doing the things you love.

Understanding your options and having a clear plan for your future really helps you step into your idea of retirement with confidence.  Get in touch today.


1.Australian Government Treasury Department, 2015 Intergenerational report. https://treasury.gov.au/publication/2015-intergenerational-report/chapter-1-how-will-australia-change-over-the-next-40-years/

2.ASFA, Retirement Standard Summary, December 2016. The lump sums required for a comfortable retirement assume that the retiree/s will draw down all their capital, and receive a part Age Pension. All figures in today’s dollars using 2.75% AWE as a deflator and an assumed investment earning rate of 6%. They are based on the means test for the Age Pension in effect from 1 January 2017.

3.Roy Morgan Research, State of the Nation Australia spotlight on finance risk, August 2016. http://www.roymorgan.com/findings/6941-state-of-the-nation-25-financial-risk-august-2016-201608251524

7Wealth Pty Ltd ABN 44 609 210 246, is an Authorised Representative of AMP Financial Planning Pty Limited ABN 89 051 208 327 Australian Financial Services Licence 232706 and Australian Credit Licence 232706
This blog contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. If you decide to purchase or vary a financial product, your financial adviser, and other companies within the AMP Group may receive fees and other benefits. The fees will be a dollar amount and/ or a percentage of either the premium you pay or the value of your investment. Please contact us if you want more information.
May 16, 2018