Planning your dream retirement can be an exciting time. The chance to travel overseas or around Australia without having to rush back to work, time to pursue new hobbies, learn a language or spend time with the grandkids. The possibilities are endless, but it may take more preparation than you think. It is never too early to start planning for retirement.
Today’s 65-year old’s can expect to live to an average of 84.6 years for men and 87.3 for women, or roughly 20 and 22 years respectively in retirement. That’s a long time, and it’s only an average. Half will live longer than that.
The challenge is to ensure your cash lasts the distance, however long that may be.
A good way to begin thinking about your retirement needs and working out a budget is to visit the ASFA Retirement Standard, where you will find detailed budgets for different households and living standards.
If you are still paying off your mortgage, credit cards or other major loans, reconsider the timing of your retirement. When you retire with fewer expenses, you may find that retirement is more affordable and feasible.