In my line of work I often get asked this question and there is no answer that can be applied to everyone.  I’ve worked with clients who have a happy and healthy retirement living on $700 per week, whereas others would spend that much just on dining out.

Recently, the Australian Bureau of  Statistics has reported that a couple would need around $56,000 to enjoy a comfortable retirement, whilst a single person would require around $41,000.  The amount you’d need to have saved for retirement to achieve that was calculated to be $510,000 and $430,000 respectively.

“Comfortable” for one person, though, is “ luxury” for another, and the opposite also applies.

When approaching retirement its important to:

•    Establish how much you currently need to live on and assess which of those costs will reduce (or increase) when you retire.
•    Look at how much you have in combined superannuation, property and other assets and assess how long your ideal retirement income will last based on that.
•    Consider strategies to bridge the gap if there seems to be a shortfall.  Do you invest more into superannuation, accelerate loan repayments, cut back on current living standards so as to save more?
•    Think about how much volatility you need, or are prepared, to take to achieve your retirement income needs.  For instance, a high exposure to shares will give more volatility but possibly higher long term returns.  A higher exposure to cash and term deposits will provide lower volatility but lower long term returns.
•    Consider the various structures such as account based pensions, superannuation, annuities and the like.  These all have different tax and Centrelink implications.

Retirement planning can be a complex area so I suggest you seek advice from a financial planner to establish the most accurate estimate possible.