Anne:” I’m 35 years old, earning $200,000 pa. How much money do I need to maintain my lifestyle in retirement?”
WP: It is interesting you mention retirement. It’d be important to know what retirement means to you and when you’re hoping to retire. But, for this exercise, we’d assume retirement age of 67 years. Also, bear in mind that everyone’s needs, and lifestyles are different. And even within your own lifestyle needs, things may change which may make your income needs change. Conventionally, you’d need about $140,000 during retirement. This is about 70% of your current salary. To generate this income, you’ll need investable assets of about $2.8M in today’s dollars to generate about 5% of income each year. Now the big question is, how do you generate this level of assets to generate that income?
We always encourage you to talk to a professional adviser to work out a strategy for your future financial freedom. Best of luck!
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Note: – this article is of a general nature only and does not take into account your objectives, financial situation or needs. Please consult a qualified Financial Adviser, like Wealth Peak Financial Advice, before making any decisions on the basis of this article. Wealth Peak Financial Advice Ltd ABN: 24 615 007 326, is a Corporate Authorised Representative of Total Financial Solutions Ltd. AFSL 224954 and ABN 94 003 771 579