JUST how much is enough to live on in retirement?
This is a question many people ask as they near the end of their working lives.
Hopefully, by this stage, the kids are independent, the mortgage is paid off or nearly there, you’ve built up some superannuation, and maybe even have a few investments in term of deposits or shares.
You may feel comfortable with your finances and think, “I’ll be OK”.
Then you read an article that says you’ll need one or two million dollars to retire comfortably – and suddenly, you’re worried.
“Will I have to keep working longer to fund all those extra years of life?” you ask.
If you own your home, you’ve likely seen its value increase significantly since you bought it.
It may have seemed expensive at the time, but now it’s worth much more. However, selling your home only to buy again in the same inflated market may not leave you with much left over – unless you’re downsizing or relocating.
Ultimately, it comes down to the kind of lifestyle you want in retirement. Are you dreaming of lavish overseas holidays, ticking off your bucket list, or setting off on a long Australian road trip with a new caravan and 4WD?
Or would you rather take it easy – paint the house, do a few renovations, and perhaps prepare to sell it down the track?
Whatever your plans, even if you haven’t managed to save a large amount for retirement or don’t have much extra cash on hand, don’t lose hope.
We are fortunate to have generous support systems through both State and Federal Governments, with many agencies ready to help when needed.
Services Australia (Centrelink) offers a range of assistance programs, including age pensions, part pensions, and access to low-interest loans.
There are also aged care and support packages available to assist you if you need additional help.
One final note: if you’ve scrimped and saved all your life, don’t be afraid to spend a little when you need to.
It can be hard to stop saving, but remember – help is available, and you deserve to enjoy your retirement.
