Enjoying retirement

Retirement can be one of the most enjoyable phases of your life when you reward yourself for many years of hard work.

Have you thought about what sort of life would you like to live in retirement? The most common reason that people say they are unable to enjoy retirement is a lack of money. Being in a position to enjoy your retirement should be one of your most important financial goals, regardless of the stage you have reached in life.

You can take positive steps to give yourself the best chance of a comfortable retirement.

Make your retirement income an important financial goal.
Plan to have enough money when you retire.
Manage events that may jeopardise your retirement plans.

How long will I live in retirement?
Australians are living longer and enjoying more productive and healthier retirements than ever before.

With the average age of retirement for Australians now at 57 years, some of us may spend as long in retirement as we did in the workforce.

A 55 year-old woman’s life expectancy is now 89.7 – that’s close to 35 years spent in retirement. So do you have enough saved to fund that many years of retirement?

How much do I need to enjoy a comfortable retirement?
Increased life expectancy is a wonderful gift but it comes at a price. As we retire earlier and live longer, we will need a much bigger retirement nest egg to see us through.

According to the Association of Superannuation Funds of Australia, even to buy the basic necessities and enjoy a modest standard of living, a single woman needs $19,996, while a couple needs $28,080 a year.

But most of us aspire for more than just making ends meet. Enjoying the odd overseas trip, a new car and regular outings to your favourite restaurant doesn’t seem much to ask after a lifetime of hard work. But a comfortable retirement costs $51,727 for a couple and $38,611 for singles.

A comfortable lifestyle, with involvement in a broad range of leisure activities, requires $38,611 (for a single) and $51,727 (for a couple) – equivalent to an outlay of about 12-15 per cent of your gross income for 30 years, including the 9 per cent Superannuation Guarantee.

The Association of Superannuation Funds of Australia Retirement Standard: http://www.superannuation.asn.au/RS/default.aspx

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