Video transcript - How much do I need to retire?
Hello and welcome back to our Retire Happy Series. The most common question we are asked is how much do I need to retire?
That will depend on the type of lifestyle you hope to have.
Let's take a look.
The three lifestyles shown assume that people are relatively healthy, own their own home and exclude lumpsum purchases like buying a car. A comfortable lifestyle enables more choice where you can afford top level health insurance, regular leisure activities, occasional travel and home repairs. A modest lifestyle provides basic health cover, infrequent leisure activities and limited budgets for home repairs.
Retirement relying solely on the age pension has limitations. You may be unable to maintain private health insurance and may only have limited car and home maintenance budgets.
One of the most important steps in planning your retirement is working out how much you will need to spend each year in relation to your desired lifestyle.
Shown on the screen are the amounts required for a comfortable and modest lifestyle for couples and singles.
If you relied solely on the Centerlink age pension you would be living off the age pension amount shown on the screen per year.
It's important to find the right advice partner to help you establish a retirement strategy using your superannuation or a combination of your superannuation and the Centerlink age pension.
Join us in the next clip to see how much super you need to fund your desired lifestyle.