How Much Money Do I Need to Retire?

Remove the guesswork from answering ‘How much money do I need to retire?’ by planning today for the life you want in the future. Knowing how much to save for retirement will vary from individual to individual of course but it is sensible for everyone to be working towards a goal. Horizon Wealth Advisory can help, we’ve compiled this short guide to help you understand some of the more important factors involved in retirement planning.

Start saving for a better future by talking with the friendly professionals at Horizon Wealth Advisory. Call us on 1300 351 716 to discuss retirement financial planning today!

How Much Money Do You Need to Retire Comfortably?

In broad terms, a healthy person retiring comfortably should be able to have a good standard of living that provides them with a range of entertainment and recreational activities, private health insurance, household items, and the ability to travel. Thinking of your retirement in terms of what you want to be able to do and accomplish can help you focus on an amount you find suitable.

In addition to considering the lifestyle you wish to have, think about the cost of living connected to where you want to live. Where you live can impact a variety of other costs such as food, travel costs, and utilities. Owning your home, paying off a mortgage, or renting are all major factors in knowing how much to save for retirement as well. Owning your home can lower expenses but you will still need to budget for home repairs and maintenance.

How Much Money Do I Need to Retire?

After thinking about how you want to live in retirement it is wise to begin considering specific types of costs and how much you want to spend on them. While it is good to be exact with your figures, think of them as guidelines that can change over time and don’t be afraid of recalculating them.

Home & Household

It is worth mentioning this again as the difference between renting and owning a home can be significant. Renting presents an ongoing cost that requires a larger share of your retirement savings. Home repairs, remodelling, and general maintenance need to be considered as well.

Medical Costs

Consider what level and type of insurance you will be comfortable having. Visiting specialists and having private health insurance will necessitate saving more. Planning properly can help you avoid being forced to go without private health insurance. Medical and household costs can have a big impact on how much to save for retirement, it is best to perform an honest assessment of your circumstances so you can plan accordingly.

Food & Meals

What type of food and drink do you enjoy having? Do you cook your own meals or get take-away? How often would you like to eat at a restaurant?

Clothing

Budget for the style of clothes you’d like to have in retirement and remember to include repair and replacement costs.

Utilities

This category includes items like internet access, phone bills, air conditioning, and gas. Do you want to have access to dependable internet service and use your utilities as you wish or are you comfortable with a more modest budget and choices?

Vehicles

If owning a vehicle is important for you make sure to plan for the cost of fuel, repairs, and insurance. Think about how much you’d be willing to spend if you want, or need, to purchase a new vehicle.

Beauty

How much do you want to spend on beauty products and services?

Leisure

This category includes trips to the gym, going out to the movies, subscription fees, and many other fun activities.

Travel

How frequently do you want to take a trip overseas or travel domestically?

Make a Plan Today

‘How much money do you need to retire comfortably?’ is a complex question requiring a frank assessment and answers. In addition to the costs above, you should consider how long you may live after retiring. Failing to consider your longevity may lead to having a shortfall in your savings. If you are concerned about not having enough or need help formulating a plan, seek the help and advice of professionals.

Ensure the Lifestyle You Want

Start fulfilling your financial goals by working with the expert professionals at Horizon Wealth Advisory. Learn more about our retirement planning services today! For further questions, call us on 1300 351 716, email info@horizonwa.com.au or contact us online for a consultation.