Are you concerned about your retirement? Have you been saving enough? iMoney Wealth Management can help you develop a financial plan that will help you to save enough for retirement.
Will I have enough for retirement? What do I need?
It's well known that you need to save for retirement. Most people do so. The problem revoloves around the amount you need to achieve your desired lifestyle after retirement.
It is not easy to answer how much money you need for retirement since cost can vary depending on your lifestyle and your health care needs.
One good jumping off point is to make a budget to see how much you anticipate needing. Some things that should be accounted for in your budget are cars, travel, gifts for grandchildren, clothing, medicine, and more.
You need to account for maintenance and insurance if you have plans to own your own home. After coming up with an annual budget the next thing to do is to determine when you will retire.
After coming up with the X amount per year that you will need you can start by multiplying this number by seventeen in case your plan is to leaving your job at 55 years of age. On the other hand if your goal is to leave the workforce at 60 you will multiply that by 15.
If you plan to spend $60,000 annually during retirement to achieve the lifestyle you want. Using the previously mentioned formula it is necessary to have $1,020,000 for your retirement with your desire living standard at 55 and $900,000 to retire at 60.
It has been determined that if your goal is to live on $60,000 per annum after 60 years of age you will need to save $900,000. If you currently have $300000 in your SMF and $100,000 in assets would give you $400,000 in total. That would leave you with a shortfall of $500,000. You may be sitting there wondering how you will ever save an additional $500,000.
Try out these calculators that will help you to figure out how much money you need to save in your super. Check out ASIC at www.fido.gov.au
to learn more. The calculators are under “Publications and resources”.
If you have gotten a late start it is important to keep in mind that seniors qualify for many tax breaks which allow you to earn an income before paying some of it in tax. Old age pensions do not pay well but that qualify you for lower prices on utilities and other living expenses.
Don’t waste another day. Start becoming financially independent today. While you are at it check out our FREE financial ebooks
for you to download, including Why You Need a Financial Adviser, which was written specifically on this subject.