While generally we avoid talking about retirement here at Money Glee, it is a consideration at least for most people.
Super Guide here in Australia suggest that for a "comfortable" retirement you will require ~ 1.1 million $ to retire. A comfortable retirement means living on $58,784 per couple & $42,861 for a single per year, assuming a 5% return on investment without any pension from the government. Sure this is great to throw around however as you may have picked up by now we're not necessarily traditional in the approach towards money, finances and life so let's dig a little deeper and show a different perspective. Let's ask a different question.
Do you really need to retire at all?
Consider the following points when we think about retirement:
- What are you actually going to do when you retire?
Although yes, having more opportunity to spend time with friends, family & travelling, how much of this can you actually do without losing a sense of "purpose"?
- We're living longer & therefore do we need more assets rather than a lump sum of money?
It's great to have theoretical planning in place for retirement however we're living longer and there are unknowns of government policy on pension plans, superannuation and or retirement accounts
- Why are you retiring?
Are you finishing up due to turning 65 or do you feel you've legitimately had enough? Be really clear on why you handing in your notice
You may have already guessed this however "retirement" doesn't need to mean what it currently means, here are a few alternative thoughts:
- Why not cut back on hours in your current role; if you enjoy it?
- If you do not enjoy your current role and or business and have enough cash, there's plenty more volunteer or social enterprise opportunities
- Get really clear on what you actually want to do with your time, then see how to make the numbers work for you i.e. how much does it actually cost for you to live month to month
- Speak with people who you say are doing well with their retirement planning
If you haven't seen the theme here; it's that you genuinely do not need $1 million to retire if you are able to effectively plan your life.
What are your thoughts on retirement?
How are you planning to spend the years once you finish up or no longer have to work?
We'd love for you to share, like or comment us and get the word out there
Remember to live your Money Glee! :)