Everyone asks, “How much money do I need to retire?”
Very few ask the more important question.
Retirement planning starts with your life. Not your super balance.
The most common retirement question in Australia is simple: “How much do I need?”
The problem is that it’s impossible to answer accurately without first understanding something far more important.
What kind of life do you want to live?
I’ve met people who live very comfortably on $60,000 per year. I’ve met others who struggle on $150,000 per year. The difference usually isn’t income. It’s expectations. Before talking about investments, superannuation or the Age Pension, we first need to understand what retirement looks like for you.
Questions such as:
- Do you want to travel?
- How often?
- Will you renovate your home?
- Help your children?
- Upgrade your caravan?
- Join the golf club?
Retirement income planning isn’t about finding a magic number.
It’s about matching your financial resources with the life you want to create.
Once you understand your destination, the financial planning becomes far easier.
Without a destination, even the best investment strategy won’t provide confidence.
The Whitehead Financial Team
