Is $60kPA really enough to retire comfortably?

Shame about the kids, even when they leave home they still cost you money
Best thing to manage budget is not to have kids

 

Wonder what most people are retiring on in super balances alone... I’m pretty sure we will have min. $60k p.a just from super (assuming we work till we are 60). Big assumption i know.

 

I also reckon you could do it cheaper. I have ips in Aus, NZ and US and travel regularly between countries. I use Skype and messenger for most calls but have cheap international minutes too. Seems to cost almost nothing.

 

Yes that would be my intention too, except that I would rotate 1-2 months in Bali, then Thailand, then Hawaii etc etc. Renting for one month plus will be cheaper per night than shorter stints in hotels.

 

With no kids, mortgage or other debts, $60kpa in retirement, so long as you don't have expensive tastes should be easy. We could live comfortably on that. When Hubby retired a couple of years ago, I estimated that our income, after selling a few properties would be somewhere around that figure, but it would grow over time. I miscalculated & that $60k was more like $85k.

We ended up selling more than we'd planned at first, which has now propelled our income much, much higher than my original estimate. Having just sold another Sydney property, the effect of putting another $600k into offsets is effectively a pay rise of around another $30k.

 

Exactly, I've got ips I can sell that will bump cash flow right up. Im holding on for now as I've got plans to squeeze more money out of them first.

 

Via reno or gf or?

 

A big expense for many working people is all the life insurance, income protection, trauma insurance etc. upwards of $12k a year for us. Then there is the cost of running 2 cars when you would probably downsize to one.

The other thing to remember is super income streams are tax free so $60k a year is the equivalent of say $90k roughly pre tax.

 

Assuming no mortgage, our 2 ppl yearly spending is about $40k net. $60k is surely doable for a couple. Internet $85 plus $40 per month for both mobile.

 

Exactly, our Sydney ones were bought to sell once the CG fairy hit Sydney. That was Hubby's retirement plan. We've still got a stash of others scattered around, that are in the waiting stages before they get sold. If it takes a year, or five years, or maybe ten, I don't care because we're not in a hurry. Once they get the CG I want out of them, they're gone too.

We never once paid for any insurances. We couldn't afford it. Downsizing to one car......I don't think so. We've always had two cars & not planning on changing that any time soon, however they are probably both a lot older than most here would be driving. Cars, to me, mean getting from A to B & nothing more, so we've never spent a lot on cars.

Super is great, for those that have it. I have NOTHING, and Hubby has very little, so it's not something that we've even contemplated.

 

Whoa. Seven properties ~ $2million value (???) according to the article (for $100K income) plus superannuation. Talking some pretty big numbers there. Personally I think when I'm 80 I don't want to be dealing with tenants any more.

Another article suggests - for couples - assuming a 5% return - $2.45m will get you through to age 100. Retirement: Want to live on $100,000 a year?

Depends how long you remain active before you turn into a vegetable and go into a nursing home (or is it the other way round?). Don't want to have too many assets at that time, thanks to means tested fees.

 

I'd try to live my life out on a cruise ship rather than a nursing home.

 

I checked out our mobile plans last night we are locked in for 2 years, the bustards, they saw us coming

 

It's really not that big a number, and certainly doable.

 

I think it all depends on one’s definition of comfortable.

My in-laws own their own PPOR, have no other assets and live comfortably on the Aged pension (35,000pa).

We own our PPOR, have a property portfolio and a share portfolio (in Super), are self-funded (been so for 7 years) and live comfortably on $7,000 per month ($84,000 pa). Travel is on top of this.

The in-laws are happy; we are happy. We just live at a higher level of comfort than they do.

 

A friend suggested that you can always go for a long swim and not bring your towel to avoid that situation.

 

Does that make you a non tax resident if travelling over 6 months? Also pay land tax on your PPOR if it's rented out?

 

Not necessarily.

 

My in-laws own their own PPOR, have no other assets and live thriftily on the aged pension.

My parents both had a reasonably successful career, and have been enjoying a globetrotting life style since their retirement.

MIL wants a family holiday to Fiji to celebrate her 70s birthday, SIL flat out refused citing affordability. MIL is very upset.

If it is the case for my parents, they probably offer to pay for the family holiday for the entire family. Of course I wouldn’t possibly let them pay for my holiday, but my point is, they have more options than my in-laws.

Call me a cynic but sometimes money can buy happiness.

I use this example to remind myself to work hard to build a comfortable retirement, if god forbids my kids don’t treat me well, I will cut them out of my Will and buy myself some new kids.