From those Monday mornings when getting out of bed is a struggle to the days when 3.30itis hits particularly hard, many of us spend years looking forward to retirement.
But when it gets to crunch time, it can be hard to figure out the right time to say goodbye to a decades-long career and prepare yourself both financially and emotionally for the change.
After all, while 65 has long been seen as the typical milestone at which to retire, Australia doesn’t actually have a set retirement age. For many, the choice lies with us – and there’s a lot to think about when making your decision about when to retire.
Here are a couple of factors you may want to think about as you start to plan:
While there’s no official retirement age, there are a few different age-based milestones that are worth considering when you start planning for retirement.
The emotional side of retirement
How much super do you need to enjoy the lifestyle you want in retirement and what do you need to get there?
There’s no magic number when it comes to how much money you’ll need to retire. While the $1 million figure often comes up, rest assured there’s no official government decree that says the magic million is a must.
Like many other aspects of super, it all depends on you and your personal circumstances – in particular, what kind of lifestyle do you personally want to live in retirement? In other words, what does your super actually have to be able to pay for?
As a rough guide, the Association of Super Funds of Australia (ASFA)’s Retirement Standard estimates that a couple will need a lump sum of $640,000 in combined super savings at retirement in order to enjoy a ‘comfortable’ retirement. A single person, meanwhile, will need a lump sum of $545,000 in super savings.
A ‘modest’ lifestyle will require a lump sum of $70,000 in super savings at retirement.