The vast majority of us work to live, not live to work, with an eventual retirement the end goal.
So, what will retirement look like? How much do I need to retire? How long will it take me to get there? These are some of the most common questions we come across in discussions with our clients. The good news is, it might not be as far out of reach as you think.
What will retirement look like?
We work with our clients towards achieving 'Financial Independence'. Achieving Financial Independence means you have accumulated enough assets that will allow you the freedom to choose if you would like to stop working, kick back and enjoy the niceties that help make up your ideal lifestyle. Many of our clients find a lot of purpose in their work and will continue working beyond reaching Financial Independence, at least in some capacity. However, they are forever grateful knowing they can pack-up-shop completely at will, with confidence they are financially secure and able to self-support their desired living expenses.
How much do I need to retire?
The answer to this question will be different for everyone, driven by how much you expect (or hope) to spend annually when you retire. As a general rule of thumb, based on a number of assumptions1, 27 years' worth of your annual living expenses invested with the help of Aspen Corporate Financial Planning will fully support your living expenses indefinitely. How Centrelink and the Age Pension can play a part in your retirement income will also need to be considered. The figures disclosed here are for illustrative purposes only and more specific information relative to your personal circumstances will need to be discussed with your adviser at Aspen Corporate Financial Planning.
How long will it take me to get there?
Your adviser at Aspen Corporate Financial Planning will work with you to identify a realistic savings rate for your circumstances and from there, an estimated timeframe to retirement will be calculated. Financial Planning strategies to accelerate your progress to retirement will also be discussed, to get you to being Financially Independent as soon as practically possible.
1Assumptions used include a Balanced investment portfolio returning 5.9% p.a. and an inflation rate of 2.2% p.a.