Some people can’t wait to retire, while for others, closing the door on working life can be challenging. You may not always get to choose when you retire either – health issues, redundancy or family responsibilities might force you to say goodbye to working life before you’re completely ready.
One of the biggest stressors for people approaching retirement is whether they’ll have enough money. When you’re used to receiving a regular income, the idea of stopping work and living off your retirement savings can feel daunting.
You might be wondering how much you’ll need for retirement, but generally there is no one-size-fits-all answer to this question. Everybody has different needs and priorities, and how you spend the next phase of your life is up to you.
The government Age Pension is available to those who meet the residency requirements and financial thresholds from age 67, but the challenge is that even if you’re eligible it may not be quite enough to live comfortably.
If you own your own home, a rule of thumb is that you’ll need two-thirds* of your pre-retirement income to maintain the same standard of living in retirement. This is where your super comes in, and for most people income in retirement will be a combination of superannuation and government support, like the Age Pension.
Retirement is a significant life change, but preparing and planning early can make the transition smoother. To help you figure out your goals and the steps to get you there, we have created our own Retirement guide.
The Retirement guide steps you through some of the key things you may want to consider, with information that’s simple to understand and easy to come back to when you need to.
Topics include:
When you can access your super
Calculating how much money you’ll need in retirement
Boosting your super before you retire
Making the transition from work into retirement
Your mental and physical well-being – it’s not just about money
The importance of setting new goals once you stop working.
The Retirement guide can be downloaded for free from our website.
*Source: moneysmart.gov.au