We are often asked the question, ‘How much do I need to retire?’ But the answer to this really depends on what retirement means to you. Whatever your retirement goals, understanding how much it costs you is the first step. One way to do this is to quantify how much your current lifestyle costs, assuming you would like to maintain this throughout retirement. Once you have determined the income required to meet your desired lifestyle, then check if it is possible for your assets to achieve your goal. If the answer is wildly different from the amount you currently spend to live, you may need to consider strategies to increase your retirement savings. The current Association of Superannuation Funds of Australia (ASFA) have developed a Retirement Standard that shows for a comfortable retirement, singles would require a minimum income of $52,085 per annum and couples $73,337 per annum. For a modest retirement, singles would require a minimum of $33,134 and a couple would need $47,731 per annum. Both budgets assume that retirees own their home outright and are relatively healthy. The key here is to use the retirement standard to ensure you have checked off everything when estimating your cost of living. For example, the comfortable standard allows for one international flight every seven years. If you are planning on globe-trotting in retirement, then you may need to up your annual needs to cover travel. It is also of note that a person retiring at 60 today may need to budget their assets to last well into their 90’s…potentially longer than their working life. This means you need to plan for your early retirement needs and also consider your future costs of care. Early planning and preparation are key to feeling financially confident – it is never too early to start thinking about your goals and dreams for life after work. #Hewison #FutureThinking #Retirement #planning Disclaimer: Any information, financial product or advice provided in this post is general in nature. It does not take into account your needs, financial situation or objectives. Before acting on the advice, you should consider whether it is appropriate to you in light of your needs, financial situation and objectives.
Hewison Private Wealth’s Post
More Relevant Posts
-
To create a retirement plan, follow these steps: •Envision Your Retirement Lifestyle: Start by imagining the lifestyle you want to maintain and the expenses you'll likely incur, such as living costs, healthcare, leisure, and an emergency fund. •Identify Post-Retirement Expenses: List out all potential expenses, including daily living costs, healthcare, leisure activities, and an emergency fund. Estimate your annual expenses after retirement based on these. •Adjust for Inflation: Inflation will impact the cost of living, so inflate your current expenses to the year of your retirement by considering the average annual inflation rate. This will help you estimate what your future annual expenses will be. •Calculate the Retirement Corpus: Sum up your inflation-adjusted annual expenses to determine the total amount you'll need each year after retirement. Then, discount this total to the year of your retirement using the real rate of return (expected ROI minus inflation) to calculate the retirement corpus you should aim to save. You can do such a calculation here: https://lnkd.in/eb45nuYZ •Determine Savings Requirements: Once you know your retirement corpus, use an SIP calculator to figure out how much you need to save annually to reach your goal. Diversify your savings by investing in options like NPS, Mutual Funds, PPF, EPF, and Equity Shares to build a robust retirement fund. ☎️ Please get in touch at +91 90510 52222 for any queries. 🔗 For discalimer, visit: https://ow.ly/gmTf50T0Rg4 #daycoindia #daycosecurities #retirementplan #retirementplanning
-
-
Living Your Best Life in Retirement 🌟 Are you ready to swap your work routine for a retirement of ease? It's important to know just how much you'll need to truly enjoy those golden years. Let's break it down: 🔹 The Essentials: According to the Association of Superannuation Funds in Australia (ASFA), a couple requires: $46,944/year for a modest lifestyle $72,148/year for a comfortable lifestyle For singles, the numbers are lower: $32,666/year for modest $51,278/year for comfortable 🔹 What's the Difference? A modest lifestyle covers basic needs like health insurance and everyday expenses. A comfortable one? It steps up with room for home renovations and even vacations! 🔹 Savings Needed: $100,000 in savings for a modest single lifestyle Up to $690,000 for a comfortable couple’s lifestyle 🔹 Boost Your Nest Egg: Your retirement funds can come from superannuation, pensions, and personal savings. Remember, money in your pension is tax-free after retirement, and you can even boost your super by downsizing your home. 🔹 Stay Prepared: Even post-retirement, your investments can keep growing. Think property rentals or stock dividends. 💡 Plan Ahead: Planning a great retirement is all about... well, planning! Want to discuss how to secure your future? Reach out for a tailored retirement strategy. 📲 Visit ActOn Wealth Retirement Planning Ready to enjoy your retirement without the worry? Let’s make sure your golden years are truly golden. 🌟 #RetirementGoals #ActOnWealth #FinancialPlanning
-
-
CA | Wealth Management for CXOs | Building a Corpus that Outlives You | Financial Planning
𝐀𝐯𝐨𝐢𝐝 𝐓𝐡𝐞𝐬𝐞 𝟒 𝐂𝐨𝐦𝐦𝐨𝐧 𝐑𝐞𝐭𝐢𝐫𝐞𝐦𝐞𝐧𝐭 𝐏𝐥𝐚𝐧𝐧𝐢𝐧𝐠 𝐌𝐢𝐬𝐭𝐚𝐤𝐞𝐬 If there is one non-negotiable financial goal, then it has to be retirement planning. It is because you will need to plan for your retirement. Here are some of the mistakes I see people make when planning for their retirement. 𝟏. 𝐖𝐚𝐢𝐭𝐢𝐧𝐠 𝐓𝐨𝐨 𝐋𝐨𝐧𝐠 Do you think you have your entire life left to plan for retirement, and retirement isn't something that you need to work on in your 20s or 30s? You may think like that today, but you might regret not starting earlier soon. This is because the sooner you start planning for retirement, the easier it becomes to accumulate a certain corpus. 𝟐. 𝐂𝐨𝐧𝐬𝐢𝐝𝐞𝐫𝐢𝐧𝐠 𝐊𝐢𝐝𝐬 𝐀𝐬 𝐚 𝐑𝐞𝐭𝐢𝐫𝐞𝐦𝐞𝐧𝐭 𝐏𝐥𝐚𝐧 Have you heard your elders say that your children will look after you in your old age? Solely relying on your children, assuming they will care for you after your retirement, isn't wise. Planning adequately to reduce dependency and secure your future is important. 𝟑. 𝐁𝐞𝐢𝐧𝐠 𝐎𝐯𝐞𝐫𝐥𝐲 𝐂𝐨𝐧𝐬𝐞𝐫𝐯𝐚𝐭𝐢𝐯𝐞 Many investors like to take a very conservative approach to investing for retirement. While the risks are low, it is also important to understand that the post-tax returns from safer investment options, such as debt and real estate, may not be enough to combat inflation. And you might have to struggle financially. 𝟒. 𝐈𝐠𝐧𝐨𝐫𝐢𝐧𝐠 𝐑𝐞𝐚𝐥𝐢𝐭𝐲 When planning for retirement, it is essential to consider realistic scenarios like inflation, education costs for your children, or the expenses of owning a home, which can spell trouble if you don't properly plan. These are the four factors you can consider for a more secure future. Remember, it is all about planning. Follow Rohit Gyanchandani for more such insights. #RetirementPlanning #FinancialSecurity #SmartInvesting
-
-
Debunking Retirement Myths: Uncover the Truth for a Secure Future! Many people harbor misconceptions about retirement that can drastically alter their future. One common myth is that you don't need to start saving until you're older. However, the reality is quite different—the earlier you begin, the more your money can grow through the power of compound interest. Don't wait; start today to take full advantage of your saving years! Another widespread belief is that Social Security will cover all retirement expenses. This assumption can lead to a rude awakening, as Social Security is intended only as a supplement to other retirement income. Most will need additional savings to maintain their standard of living once they stop working. It's also often thought that expenses decrease after retirement. Yet, for many, costs remain the same or even increase, particularly due to rising healthcare needs. Planning for higher expenses is crucial, not less. Furthermore, while investing always involves risks, avoiding it altogether is also risky. Smart, diversified investments are key components of successful retirement planning, helping to manage risks and ensure growth over time. Lastly, predicting the exact amount needed for retirement is nearly impossible due to variables like health, inflation, and unforeseen expenses. Regular reviews and adjustments of your retirement plan are essential to stay on track. Don’t let myths derail your retirement dreams. Arm yourself with knowledge, start planning wisely, and adjust as life evolves. Your future self will be grateful for the foresight! 🚀💼 #RetirementPlanning #FinancialLiteracy #SecureRetirement #InvestSmart #FuturePlanning #FinancialFreedom
-
Johan wants you to take a look at these 10 considerations before putting together your retirement plan. Retirement is not a once-off event, and planning for it shouldn’t be, either. Consider these 10 factors as you get started. 🌟 #1: Build Your Nest Egg Start saving early to ensure a financially secure retirement. Planning ahead helps you manage your money effectively and develop strong saving habits. We recommend getting started once you start earning. 🌟 #2: Know Your Needs Every individual has unique retirement needs. Consider your daily expenses, monthly overheads, and other essentials when planning and saving for retirement. 🌟 #3: Identify Your Wants Dreaming of travelling or pursuing new hobbies in retirement? Think about how you want your retirement to look and feel. Identifying your lifestyle goals helps you plan your retirement income effectively. 🌟 #4: Support Your Dependents If you have dependents, consider their welfare and education costs. Factor these expenses into your retirement planning to ensure you're adequately prepared. 🌟 #5: Prepare for Emergencies Set up an emergency fund to cover unforeseen expenses during retirement. Johan is able to recommend solutions like the Glacier Investment Plan for additional liquidity when needed. 🌟 #6: Plan Your Legacy Consider leaving a portion of your savings to your loved ones. Explore retirement income solutions that allow you to pass on your wealth to beneficiaries or your estate. 🌟 #7: Be Tax-Smart Optimize your retirement savings for tax efficiency. Explore options like tax-free savings accounts (TFSA) to supplement your retirement income. 🌟 #8: Keep Planning Flexible Your retirement plan may evolve over time. Regularly review and adjust your plan with the help of your financial adviser to stay on track. 🌟 #9: Manage Risks Mitigate risks associated with retirement, such as longevity risk and sequence risk. Discuss strategies with your financial adviser to ensure your savings last. 🌟 #10: Choose the Right Solution There's no one-size-fits-all retirement income solution. Work with a financial adviser like Johan Redelinghuys (0724032788) to create a personalised plan that meets your needs and goals. Ready to make the most of your retirement? 🚀 Speak to us at San-Etos Wealth Bluestar https://lnkd.in/dYJS-Cad #RetirementPlanning #FinancialFreedom #GlacierBySanlam #April #FreedomMonth
-
How Much Money Do You Need to Financially Retire? Step-by-Step Method to Estimate Your Retirement Corpus Step 1: Assess Your Current Lifestyle and Estimate Your Monthly Expenses Begin by understanding your current and future expenses. As you age, these expenses will inevitably increase—this is known as lifestyle inflation. It's essential to be aware and plan accordingly. Step 2: Determine Your Retirement Corpus If your monthly expense is ₹33,000, your annual early retirement expense is ₹4 lakhs. Using a conservative 4% withdrawal rule: Annual Expense = ₹4 lakhs Required Portfolio = Annual Expense / 4% = ₹4 lakhs / 0.04 = ₹1 crore This portfolio size allows you to withdraw ₹25,000 per month. Step 3: Save a Good Percentage of Your Income Start saving at least 10-20% of your income and aim to increase this amount. If you can save 70-80% of your salary for 10 years, you can retire comfortably, assuming you control lifestyle inflation. For instance, with a monthly income of ₹1 lakh and a savings rate of 80-85%, you can amass a retirement fund of about ₹1 crore in just over 10 years. Step 4: Track Your Spending It’s crucial to focus not just on earnings but savings. Monitor and manage your expenses diligently. Recurring expenses like EMIs can impact your retirement savings significantly. Step 5: Decide When You Wish to Retire Determine your retirement age early on. The earlier you plan to retire, the more rigorously you need to manage your investments and expenses. Step 6: Grow Your Money as Per Your Segmental Inflation Building your retirement corpus is just the first step. You must also grow it to outpace inflation. If your segmental inflation is 8%, try to achieve a portfolio growth of at least 12%. Step 7: The 4% Withdrawal Rule By aiming for a 12% growth, your portfolio beats inflation by 4%, allowing you to safely withdraw 4% annually. With a ₹1 crore portfolio, you can safely withdraw about ₹4 lakhs every year, adjusted for inflation. While individual needs may vary, these principles can help create a robust retirement plan. Personalize this strategy to fit your financial situation and retirement goals. What are your thoughts on this strategy? If you found this post valuable, consider sharing it! #FinancialFreedom #RetirementPlanning #FinancialIndependence #PersonalFinance #WealthBuilding
-
-
Christel wants you to take a look at these 10 considerations before putting together your retirement plan. Retirement is not a once-off event, and planning for it shouldn’t be, either. Consider these 10 factors as you get started. 🌟 #1: Build Your Nest Egg Start saving early to ensure a financially secure retirement. Planning ahead helps you manage your money effectively and develop strong saving habits. We recommend getting started once you start earning. 🌟 #2: Know Your Needs Every individual has unique retirement needs. Consider your daily expenses, monthly overheads, and other essentials when planning and saving for retirement. 🌟 #3: Identify Your Wants Dreaming of travelling or pursuing new hobbies in retirement? Think about how you want your retirement to look and feel. Identifying your lifestyle goals helps you plan your retirement income effectively. 🌟 #4: Support Your Dependents If you have dependents, consider their welfare and education costs. Factor these expenses into your retirement planning to ensure you're adequately prepared. 🌟 #5: Prepare for Emergencies Set up an emergency fund to cover unforeseen expenses during retirement. Christel is able to recommend solutions like the Glacier Investment Plan for additional liquidity when needed. 🌟 #6: Plan Your Legacy Consider leaving a portion of your savings to your loved ones. Explore retirement income solutions that allow you to pass on your wealth to beneficiaries or your estate. 🌟 #7: Be Tax-Smart Optimize your retirement savings for tax efficiency. Explore options like tax-free savings accounts (TFSA) to supplement your retirement income. 🌟 #8: Keep Planning Flexible Your retirement plan may evolve over time. Regularly review and adjust your plan with the help of your financial adviser to stay on track. 🌟 #9: Manage Risks Mitigate risks associated with retirement, such as longevity risk and sequence risk. Discuss strategies with your financial adviser to ensure your savings last. 🌟 #10: Choose the Right Solution There's no one-size-fits-all retirement income solution. Work with a financial adviser like Christel Troskie (0765474675) to create a personalised plan that meets your needs and goals. Ready to make the most of your retirement? 🚀 Speak to us at Indwe BlueStar https://lnkd.in/dN5VrGdR #RetirementPlanning #FinancialFreedom #GlacierBySanlam #April #FreedomMonth
-
Are you on track for a comfortable retirement? It's time to rethink the old $1 million savings goal and adapt to today's economic realities. Here are three key points to consider: 🌍 Location Matters: Your retirement destination can greatly affect how long your savings last. For example, $1 million might last about 22.7 years in Mississippi, around 19.8 years in North Carolina, but just over a decade in Hawaii. Of course, in some cases our clients also expatriate in retirement and/or spend time in multiple locations. In the cases of moving to other countries currency exchange rates, inflation, political and economic differences can come into play. With average retirement lengths of 18.6 years for men and 21.3 for women, choosing your right location(s) is crucial. 🤔 Define “Comfortable”: What does a comfortable retirement mean to you? A serene life in a small town or an adventurous journey around the globe? Your vision of retirement significantly influences your financial needs. We can help you identify, narrow down these goals and make sense of their related cash inflows and outflows. 💰 Stay Consistent: Whether retirement is just around the corner or years away, regular contributions to your savings, no matter how small, can make a big difference over time. In addition, evaluating how and when to turn on your retirement income (including Social Security) can make big differences in your expected outcomes. With proper planning and expert advice, you can tailor your investments to fit your retirement dreams. Unsure if your current plan is on track? We’re here to help refine your strategy. Reach out for a chat. We are always here for our clients!
-
-
Jacoba wants you to take a look at these 10 considerations before putting together your retirement plan. Retirement is not a once-off event, and planning for it shouldn’t be, either. Consider these 10 factors as you get started. 🌟 #1: Build Your Nest Egg Start saving early to ensure a financially secure retirement. Planning ahead helps you manage your money effectively and develop strong saving habits. We recommend getting started once you start earning. 🌟 #2: Know Your Needs Every individual has unique retirement needs. Consider your daily expenses, monthly overheads, and other essentials when planning and saving for retirement. 🌟 #3: Identify Your Wants Dreaming of travelling or pursuing new hobbies in retirement? Think about how you want your retirement to look and feel. Identifying your lifestyle goals helps you plan your retirement income effectively. 🌟 #4: Support Your Dependents If you have dependents, consider their welfare and education costs. Factor these expenses into your retirement planning to ensure you're adequately prepared. 🌟 #5: Prepare for Emergencies Set up an emergency fund to cover unforeseen expenses during retirement. Jacoba is able to recommend solutions like the Glacier Investment Plan for additional liquidity when needed. 🌟 #6: Plan Your Legacy Consider leaving a portion of your savings to your loved ones. Explore retirement income solutions that allow you to pass on your wealth to beneficiaries or your estate. 🌟 #7: Be Tax-Smart Optimize your retirement savings for tax efficiency. Explore options like tax-free savings accounts (TFSA) to supplement your retirement income. 🌟 #8: Keep Planning Flexible Your retirement plan may evolve over time. Regularly review and adjust your plan with the help of your financial adviser to stay on track. 🌟 #9: Manage Risks Mitigate risks associated with retirement, such as longevity risk and sequence risk. Discuss strategies with your financial adviser to ensure your savings last. 🌟 #10: Choose the Right Solution There's no one-size-fits-all retirement income solution. Work with a financial adviser like Jacoba Van Den Berg (0834567512) to create a personalised plan that meets your needs and goals. Ready to make the most of your retirement? 🚀 Speak to us at Westgold BlueStar https://lnkd.in/dfacv9NK #RetirementPlanning #FinancialFreedom #GlacierBySanlam #April #FreedomMonth
-
Are You Prepared for the Rising Costs of Retirement? 📈👵👴 Recent data from Hargreaves Lansdown’s Savings and Resilience Barometer reveals that the cost of a moderate retirement income is now £25,000 per year for a single person and £36,480 for a couple, marking an increase of over 34.3% and 26.8% respectively due to inflation adjustments. With the State Pension currently at about £11,500 per person per year, many are finding themselves unprepared for the financial realities of retirement. Why You Should Act Now: - Understand Your Needs: Knowing the actual costs can significantly impact your retirement planning. - Bridge the Gap: With only 38% of households on track for a moderate retirement income, it’s crucial to assess how prepared you are. - Tailored Advice: Every retirement journey is unique. What works for one might not work for another. 🌟 Get a Free Initial Pension Review! Don't let inflation dampen your retirement dreams. Contact us for a free initial consultation to review your pension and retirement plans. Let's ensure your retirement savings are on track to meet your future needs. Source: Hargreaves Lansdown’s Savings and Resilience Barometer ⚠️ Risk Warning: The value of your investments can go down as well as up, and you may get back less than you invest. Retirement income planning is crucial and should be considered carefully. Always seek financial advice tailored to your personal circumstances. #RetirementPlanning #PensionReview #FinancialAdvice #InflationImpact
-
