Want to Work Less and Live More: Do You Have Enough?

One of the most common queries we encounter from individuals looking to strike a balance between working less and enjoying a richer lifestyle is, “Do I have enough?” is a bit like trying to predict your phone’s battery life—it’s influenced by various factors! Your future lifestyle depends on your current habits, the experiences you crave, and your risk appetite. It’s a personalized equation for each of us.

As a rough guideline, the Association of Superannuation Funds of Australia (ASFA) proposes that, for a modest lifestyle, a single retiree should have around $32,417 annually, while a couple may need about $46,620.

For a comfortable lifestyle, these figures increase to $50,981 for singles and $71,723 for couples. Some of the difference between a modest and comfortable lifestyle includes considerations for a car, clothing, private health insurance, and leisure activities like entertainment, occasional dining out, and holidays. It’s worth noting that these figures, correct as of September 2023, may evolve due to inflation affecting retirement costs over time.

However, these numbers are just starting points. Your personal lifestyle goals and cost of living are key factors that may differ based on how you envision your retirement. Consider your interests, hobbies, and how you plan to spend your time; for instance, these figures may fall short if you’re aiming for extensive overseas travel or maintaining multiple lifestyle properties.

Our approach involves understanding into your current spending habits and your ideal retirement. This provides the foundation for determining the income you’ll need during retirement. To kickstart this process, the government’s MoneySmart website offers an excellent budgeting tool to help you understand your living expenses.

For a more detailed understanding, downloading your transaction history from bank accounts and credit cards into an Excel spreadsheet can provide a clearer picture of your spending patterns.

If you find yourself needing assistance in navigating your cashflow to determining YOUR ideal retirement income, don’t hesitate to reach out to our team for an initial chat. We’re here to guide you on this exciting journey toward a fulfilling and balanced future.

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Emerald Wealth