Super | Every bit countsIs $1 Million enough Super ?

In a recent review meeting, our client raised the topic of how much money might be needed for a comfortable retirement.  He bandied the figure of $1m as perhaps being the ideal amount of capital required.  This seems to be a common belief and it’s easy to understand why because $1m earning 5%, would generate $50,000 of income per year.  Of course, this is a generalisation and doesn’t take into consideration:

The bad news is that the majority of baby boomers won’t have enough saved to enjoy a financially secure and independent retirement.  While there are effective strategies to bridge the gap, ultimately there needs be a commitment and discipline to saving and investing.

Other retirement financial objectives

Money is one way to measure your financial objectives in retirement but not the only way.

Really, the most important question is defining the type of lifestyle you wish to lead.  Exploring this question will give you a better understanding of how much capital you’ll need.  If there’s a shortfall. then set about identifying your choices and options.  For example, you could:

This exercise will build confidence about your future because you’re in control and realise that you do have choices.

Planning your retirement

It makes perfect sense to do your homework first so you have clarity around your objectives and the outcomes you wish to achieve.  From there, develop a plan of how you intend to work towards those things that are most important to you.

The project might seem daunting and is much easier when you have someone who can guide, help facilitate and monitor your progress.  This is exactly what our role, as financial advisers entails.   The probability of success is far greater when someone is keeping you honest and focused.

If you would like to know more, we specialise in personal rural financial advice and visit the Eyre Peninsula regularly.