How much money do I need to retire?

This is the question I’m asked most often as a financial planner. The answer is complicated! Just like pre-retirement, everyone’s income needs differ significantly.

In order to calculate how much is required to retire, we must first identify how much income is required each year. The easy part is estimating fixed costs and bills, for things such as utilities and groceries.

The more difficult part is working out discretionary spending. We identify the things that a client would like to do in retirement and attempt to work out what this lifestyle costs. We also allow for unexpected expenses.

Once we have an estimate on how much income is required in retirement, we are able to determine the assets required to provide this level of income for the expected length of retirement.

If you are looking to retire, I recommend you get advice so you’ll be in the best possible position to meet your retirement goals.