Retirement again:)

So your retired.........whats the difference from comfortable and modest lifestyle???

MTR

 

Single malt vs blended

Chinos vs fig leaf

Sofa so good

 

semi-retired, but still comfortable lifestyle, meaning on similar financial terms.
I suppose the change for us is when the kids become adults and become independent, so we gain more time to do our chosen things as opposed to necessary day to day activities which may have involved around them...

 

Comfortable is whatever I want it to be.

Modest is what my mother does. Given she owns her own home, she still travels a few times a year on those old people's bus trips, and goes on at least one cruise a year.

Extravagant is for someone else

I'm not retired yet but will be shortly, so I know my budget.

 

@MTR When you start looking for retirement ideas you know it's time for you to get out of retirement and get back to work. You've had enough time off! Come back and join us peasants!

 

Retirement is boring - especially when you are still in the 30s.
Just saying as I did it for 6 months - almost went crazy as all my friends are still working at 30s to 40s.
I think when one person retirement needs to match their surrounding or find new younger retired friends - as they aren't many out there.

 

When you can laugh and pay for the unexpected - like when your car ends up with the back wheel hanging over the rockery [happened to me a couple of weeks ago] provided no end of amusement for the neighbours for a couple of days ...

 

According to the Association of Superannuation Funds Australia (ASFA) about $20k per year Retirement Standard - ASFA

We are all different and we all have different ideas of what to do with our money and time and how much is enough.

 

Not sure where they get $20k from. If you owned an "Average" house you spend maybe $5k on the owning a house rates etc. Rent might be $300 a week or $15k a year

 

I understand the $20k is the difference not an annual amount of income.

The ASAF figures have been questioned on a number of occasions by various commentators. I cannot find the original research document on which the ASAF got and used the base figures but from memory it omitted a qualifying phrase along the lines of an ideal income but not a need.

I've always had in the back of my mind the organisation originally was a forum for advisers to SMSFs and not the SMSFs themselves. I know I didn't elect them to represent my SMSF.

 

Or when one of your cars expires, you choose a new car and pick it up two days later....

 

A wise man once told my husband - "to enjoy retirement you have to retire to something - not from something"

I'd been trying to tell hubby that for years (retirement next year) but, as usual, it takes an outsider to repeat what I've been saying for him to take notice

 

So it's an extra $20k over and above the full pension rate not as an substitute or alternative to the pension but a supplement.

 

Possibly. According to the ASAF the difference between a modes lifestyle and a comfortable lifestyle for a couple is c $20k pa.

Whether its calculations and assessment take into account any pension availability or income from other investments (although any income in retirement is retirement income in my view) the organisation hasn't clarified. Really wish I had kept the link to the original research which was not done by or on behalf of the ASAF if I remember correctly. It was quite a few years ago.

But, hey, even if it's not your work and the figures/qualifications have been amended slightly, let's keep pushing it as facts. It works.

 

To generate that $20kpa from super (untaxed), a retiree would only require circa $300k growing at 6% pa (and spending allowance growing at 2.5% pa - CPI). This would last for 20 odd years, so from say age 67 to 87. It's not a big ask. If you wanted to retire today on $100k tax free, it'd be closer to $1.4M today). Of course, you may miss out on your pension but....

 

Modest :- Being of a moderate or limited level.
Comfortable :- As being as large as is needed or wanted.

Just as people have strategic plans in place throughout their working life to accumulate wealth, which enables them to be able to retire, it is also imperative to have plans in place for your retirement.

 

Detailed breakdown here
https://www.superannuation.asn.au/A...mentStandard-Budgets-Mar2019.pdf.aspx?Embed=Y

 

The sun on my face, the sight of an animal or a beautiful plant, the sounds of birds...beyond comfortable and costs absolutely zero. Home made bread, delicious recipes made at home. Sitting in the garden. A glass or three of moderately priced wine It doesn't matter how many houses I buy, those are the things I truly love the most! I'm a born easy going, nature lover, couldn't care less about labels, brands ,suburbs and for that I'm forever grateful

Must admit I feel a bit sorry for people who need particular postcodes and things because the money for those has to come from somewhere if you don't have it already. Each to their own The cheapskates have it sussed..

 

We are truly blessed living in Australia, we have won lotto imo

I dont take the simple things in life for granted like our excellent health care system, our education system where everyone has an opportunity to improve their life etc etc etc

not many people will be self funded in retirement ....

we are fortunate as We are rated number 4 .....best old age pension in the world, that’s massive.

 

People who constantly whinge and complain about living in Australia will never be happy living anywhere. I've been to many places and Australia is THE best to live imo