Working Out Your Needs
Once thing that every Australian is aiming for is enough savings to live out their retirement in comfort. Of course, the life that one person finds luxurious may seem quite modest to another. The best way to get a general idea for what you need is to observe your current budget, and use that information to work out an anticipated annual retirement budget. Think about things like hobbies, travelling, cars, dining out, entertainment, clothing, utilities and so forth. You may have other factors to think about as well, such as children, health, the costs of keeping up your home, the costs associated with your investment property, any assisted living you might need, and the list goes on.
As a general rule of thumb, if you want to continue living the same pre-retirement lifestyle, then you’ll need to have a retirement income of at least 60-65 per cent of your pre-retirement income.
Comfortable Living According to ASFA Retirement Standard
The ASFA Retirement Standard study has measured the average target that Australians are aiming for in order to have a basic to comfortable lifestyle in retirement. The study takes into account the changes in living standards, spending patterns and the evolving costs of life in general. Assuming that you own your home, the following is how much the study estimates you’ll need for retirement:
1. For a basic lifestyle, $20,088/year for a single person or $30,285/year for a couple. This single Age Pension represents approximately 27.7 per cent of the average weekly earnings of an Australian male. Living solely on the Age Pension will afford you a basic lifestyle and access to discounts on health services and energy costs. While this amount is enough to survive on, many Australians expect better for their retirement.
2. For a modest lifestyle, $22,539/year for a single person or $32,511/year for a couple. This lifestyle is better than living solely on social security, but you would still only be able to afford low-cost activities.
3. For a comfortable lifestyle, $41,090/year for a single person or $56,236/year for a couple. This level of income would ensure you could afford more recreational activities as well as things like private health insurance, a higher quality of household goods and even some travel. This isn’t anything outlandish, but it is what most Australians are hoping for.
Elite Wealth Creators have been involved in the property and finance industry for over 20 years. Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance
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