How much life is costing you in retirement?

How much life is costing you in retirement?

How much life is costing you in retirement (1)

This is the question I get asked very often by new clients, followers of this YouTube Channel or readers of my weekly Newsletter “How do I work out my expenses in retirement? How do I know if my spendings are within the limits or if I overspend?”.

The best way to be financially prepared for your retirement is to follow those steps:

1. Work out how much money you will have in your overall retirement savings

2. Organise your money with the view of maximising your income in retirement

3. Consider your long-term costs

4. Create a budget that is realistic but also that you will be able to stick to. Please watch the video, as I will explain how you can get access to the new calculator I have created to assist you with making the budget less daunting.

5. Track your spendings

So let’s go through those points of retirement costs, income and budget.

1.     Work out how much money you will have in your overall retirement savings

There are number of calculators available on internet, you can find one on your superannuation side, on MoneySmart which is the government side. The unfortunate thing is that they are mostly limited to your superannuation savings, so you cannot include any out of super savings you might have such as cash or Term Deposits in your bank account, shares you might have listed with a broker, managed funds or any other investments. This is where a appropriate full advice form a financial planner can assist by putting all your financial assets together and calculating the expected value of your estate at any point in the future.

2.     Organise your money with the view of maximising your income in retirement

This is exactly what my YouTube channel is all about and this is what I do daily for our clients. As you know there are number of income sources in retirement that you can benefit from such as:

  • Account based pension – the most popular superannuation income stream and you can find lots of videos on my YouTube channel or articles on my website AboutRetirement.com.au explaining most aspects to consider of this type of an income stream.
  • Annuities – a very popular income stream for retirement, and the one that finally makes a comeback. I would say that 70% of my retired clients have some savings in annuities set up for different reasons and different benefits. But most certainly one major benefit is possibly maximising your Age Pension, so if this is your goal, please book a meeting with me to run through your retirement income options.
  • Investments outside of super such as shares, rental properties, fixed deposits
  • Part-time work
  • Age Pension – maximising this benefit should form part of your retirement planning.
  • Selling your home (downsizing) or drawing equity from your home to support your living expenses.

3.  Consider your long-term costs

Those are your later in life expenses, that you really should incorporate in your planning, and one of the major expenses would be Aged Care. I’ve already introduced couple of issues about Aged Care: The biggest Aged Care mistakes to avoid” or “Lifetime Annuities and Aged Care Annuities”

4. Create a budget that is realistic but also that you will be able to stick to.

There is no point of working out the budget that is restricting you to the degree that you will not be able to implement into your life. But most people really dislike the budget, most people feel it is restrictive and a total waste of time. So I have decided to assist in this matter.

If you visit my website AboutRetirement.com.au , you head to News and then Resources, at the top of the page, you have calculators named: Retirement Spending Planner for couples or singles.
Choose the right calculator for your situation.
Write you name and your email address, as this is where you will receive the outcome of your planner.

Then enter you expenses per week into the calculator, which is divided into your Essential and Discretionary spendings.

Once you have completed the calculator, just click SUBMIT and in few seconds you will receive the email with the outcome.

And your outcome is the comparison of your budget and your spendings to those of ASFA for a comfortable lifestyle.

If you would like to know more about ASFA and their findings about the comfortable lifestyle in retirement, see: Income required for a comfortable retirement”

5. Track your spendings

Now, after having done your budget, all you have to do is to keep the track of your daily spendings. If you are an Excel gig, you can do this on your computer or laptop using Microsoft Excel spreadsheet. If you prefer, you could use a commercial app that will track all your expenses as you go, there are number of those, but I am not going to advice on any particular, as it might be taken as a product advice, and I need to keep my videos limited to a general advice only, and any product advice is no longer part of a general advice.

I hope the budget calculator will assist you in comparing your expenses to those listed by AFSA. This is a very good exercise to show you if you are on track or you are spending far too much, or too little, in which case you could enjoy life a little bit more.

If you would like to make a booking with me to see how to organise your retirement and how to maximise your money for the best income level as well as security of it, you can also do this via my website.

 

By: Katherine Isbrandt CFP®
Money Strategist & Retirement Planner
Principal of About Retirement

Say Hi on Social

Interesting Read

13 Financial Mistakes We All Make

ebook-cover About Retirement

Client’s Testimonials

Katherine has been a lifesaver for my Husband and I.

Vicki & Ray Allen

My Aged Care Avatar! Katherine has aided me both emotionally and financially.

Ella Maynard

Katherine Isbrandt has been my Financial Advisor for nearly 16 years..

Margaret Lord

More Great Read

12 Principles of Investing

Principles of Investing
How much life is costing you in retirement?

Calculators & Forms

A tiny request: if you liked this article, please share it

Most people don’t share articles, thinking that one share will not make a difference, but believe when I say, each article takes hours of putting it together, and I create them as I really want to make a difference in people’s lives.

So thank you so much for your support. Not only you will seriously help this blog to grow, but more importantly you will help people who might need this information and advice.

Some great suggestions how you can share it:

  • Pin it!
  • Share it on Facebook
  • Tweet it
  • Email to your friends and colleagues

It won’t take any more than 10 sec, as I’ve created all share buttons here for your convenience 😊

Just pick your favourite button from the left side of this post, write your note and it’s done. THANK YOU

Labor tax cuts – who benefits the most

Labor tax cuts – who benefits the most

Labor tax cuts – who benefits the mostLabor tax cuts – who benefits the mostPolitics is an amazing beast, and we all have love/hate relationship with it. But regardless of your feelings towards politics, political parties, or political leaders, we are all impacted by...

read more
How to invest $1mil for best retirement

How to invest $1mil for best retirement

How to invest $1mil for best retirementI meet a lot of people who are preparing themselves for retirement who have approximately $1mil. Therefore, I thought it is a nice, round figure, a good level of savings, and lots of people can relate to this scenario. In this...

read more
What’s Planned for 2024

What’s Planned for 2024

Planning for 2024Planning for 2024HAPPY NEW YEAR  I do hope you had an amazing Christmas with your loved ones, and that you managed to welcome the New 2024 Year with people that you care about, family or your friends.   I have a feeling that 2024 will not be an easy...

read more

Select More Resources

News

Books

Videos

Resources

financial mistakes

13 FINANCIAL MISTAKES WE ALL MAKE

 

Where should we send your free copy?

You have Successfully Subscribed!

Pin It on Pinterest

Share This