Funding Retirement - how much money is enough?

If there is one question in many baby boomers minds at the moment this is probably it.

How much you need is determined by a few factors (not an exhaustive list):

• What lifestyle you wish to lead in retirement?
• What age do you intend to retire?
• What does that lifestyle cost?
• What accomodation will you have? Will this add an ongoing cost?
• How much tripping around do you want to do?
• What are your hobbies? What do they cost?
• Remember this is a 7 day weekend - lots of time to fill!
• What is your health like? Will it be a long healthly life? People are living longer, many well into their 80's and more and more into their 90's.
• Will you still have dependant others (children, parents, etc)?

As an example:

A couple who want to retire at age 60 and have an income of $80,000 net of tax over normal life expectancies (mid 80's) would need about $1,000,000. Of course this assumes a continued average 8% investment return from invested funds during retirement.

Where does this put you? It is never too early to start planning and investing - it can be too late!

Happy to here from any retirees out their about how much it is costing them to live each year.

Regards

Damian Ebzery B.Bus M.Bus AFPA ASA