Thursday, 21st April 2016
Without a crystal ball at hand, it's hard to know exactly how much money we'll need in retirement. What might be an essential for you, may be something I've never even considered - and vice versa.
But the biggest problem facing all of us is how to ensure our money doesn't run out in the last 10 years of our lives.
It's all well and good to think we have a good retirement fund, but what if our needs are higher than expected or our children get in financial duress and need help? How can we safeguard our loved ones against this sort of thing from happening?
The simple fact is that prices keep going up all the time - let's face it, look at the cost of essentials including food, utilities and clothes. They are on the rise, with no signs of going down.
Believe it or not, I've even seen retired people who've had to give up their pets, because they couldn't afford to feed them or pay for vet bills. Pets can be the saving grace of retirement, so it's not an ideal situation to be in.
The answer is to look at saving more towards retirement, starting from now. Whilst some people think $50k or even $75k per year will be enough, I believe that even if you own your principal place of residence, this still won't be enough.
Turn things around and aim for a minimum of $100K pa in retirement. This will help insure you against inflation - and mean that if you need to replace your car as you get older, it's not going to impact your every day living.
Don't get stuck without savings behind you in retirement - plan now for a realistic amount and you won't be shortchanged.
Until next time,