Retirement would suck, without cashflow. .

another take on the costs of retirement. Interesting most retirees continue to save in retirement.

Peter Martin - Super: you don't need as much as they say

 

he latest scary figure, produced by the Association of Superannuation Funds, is $58,784 per year. That's how much it says a 65-year-old couple needs to live on in order to enjoy a "comfortable" retirement.

They say $58,784 was originally written as comfortably affluent.
I'm sure many can live of this figure.
If I don't earn double this figure by retirement it seems I'll have to have my wife continue to work well into our 90's.

 

Some people live on this comfortably and use the Mr Moustache method.

All to their own, I guess.

I am with you I could not live on this income.

What I have realised though is the more money you make the more you spend, so perhaps it can work the other way, a mindset thing.

 

Your level of comfort on this figure would obviously depend on whether or not you were paying a mortgage/rent.

 

a lot of things can suck ... without cashflow ... eg: life

 

Yes it can be done, but much harder to do once your used to a certain lifestyle. And im aiming to retire before 55, so costs will still be high as I'm hoping to still be active and living a lifestyle as I do today.

 

I retired at 47, but never really retired, I guess initially it was not quite enough and just continued to increase income.

What if you continue with developing but on a smaller scale to generate further income? is this possible. Even a reno, it could be a hobby if you enjoy it, but still provide additional income

 

I see investing/building/adding equity as a passion, this will never be work so I can't see myself stopping this, even if I was a billionaire beyond 60 years of age.

 

then you don't have a problem you can continue to create income from your passion while retired, perhaps at a slower pace there easier to source finance etc. just a thought

 

Wife was reading my hand palms the other day.

To her surprise, she said she can see the letter "M" on my palm, suggesting I will be a "M"illionaire..

I looked. Not convinced what she was seeing though. I think it's a "B"

 

My costs have gone down dramatically since I stopped working couple of years ago, but I did move countries. Rent is now half what it was, plus used to have at least $2000/month expenses that no longer exist or are a fraction of before (health insurance $450, work lunches $400, airfares $500+, life in Switzerland). Spending kind of adjusts to someones current income, you naturally spend more when you're earning more and cut back when you're not.

 

Bankrupt?

Broke?

Bastille?

 

*******?

 

or maybe Biz ( now that's worrying)

 

no , not b, for bs, I reckon it's M... hehe

 

The problem of thinking about how much money you need to travel in retirement is that it is made with a working mindset.

When we are working, we often term traveling as holidays, as the escapism from work is as much a part of the experience as the trip itself. Additionally, as we have limited time to travel while working and are often bound to peak times when we can take such travel opportunities, such holidays can be expensive.

When retired, that work escapism element is removed, hence dampening the 'need' for a holiday, and you can travel at times and by means sometimes far cheaper than you were used to. Additionally, the earlier you retire, the more years you have to work through your bucket list of travel, which further reduces the cost per year of retirement.

Noting exceptions like Travelbug here on this forum who love to travel, for most of us travel in retirement can end up being far cheaper and less frequent than you envisioned while under the influence of work. All I suggest is that you not be too constrained by your current mindset in determining how much you will 'need' to spend in retirement.

 

I hate the word retired but if I use it in the context it's used here then I retired at 33.

Technically I was financially independent at 33 through property investing.

However once I stopped depending on money then I started to make more money what I needed to build was not more properties but myself and the people around me this creates more work.

Growth is work

 

It's true, people tend to spend more as they earn more.
Would be a shock if they didn't start to adjust when going down though.

 

If I ever "retired" to do what I love to do then I would just go out and spend my time making money because that is what I love to do.

 

Why are you so greedy. .


For me, I love making deals. The bigger the better.