Enjoy retirement years

Article last updated: 20/05/09

Retirement can be one of the most enjoyable phases of life. It can be a time when you reward yourself for many years of hard work.

Firstly you need to gain an understanding of the type of life you would like to live in retirement. Being in a position to enjoy your retirement should be one of your most important financial goals, regardless of the stage you have reached in life. The most common reason that people say they are unable to enjoy retirement is a lack of money.

But most of us aspire for more than just making ends meet. Enjoying the odd overseas trip, a new car and regular outings to your favourite restaurant doesn’t seem much to ask after a lifetime of hard work. But a comfortable retirement means almost doubling the required nest egg, to $50,561 for a couple and $37,829 for singles¹.

Be smart about having enough money to support a comfortable lifestyle
Write down the dollar amount you think you will need each year throughout your retirement. Then multiply this by the number of years you expect to be in retirement, remembering that, on average, women who reach the age of 60 are expected to live to 86 and men to 83 years of age.

This will give you an idea of the funds you will probably need to enjoy your latter years.

To ensure you can enjoy your retirement:
plan to have enough money when you retire
make your retirement income an important financial goal, and
be prepared to manage events that may jeopardise your retirement plans².

¹ Association of Superannuation Funds of Australia Retirement Standard, December 2008
² Investment and financial Services Association, Intergenerational Report, April 2008