Join Australia's most dynamic and respected property investment community

What is your desired Retirement Income compared to Current Wage?

Discussion in 'General Property Chat' started by Terry_w, 27th Mar, 2016.

?

In Retirement do you want more or less income than you are currently earning?

  1. More

    35 vote(s)
    26.1%
  2. Less

    64 vote(s)
    47.8%
  3. Same

    35 vote(s)
    26.1%
  1. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,975
    Location:
    Sydney
    I would like to ask everyone whether they think they will need/want more or less money in retirement than they are currently earning.

    By 'retirement' I mean the cessation of the 'job', i.e. leaving the rat race', which can occur well before pension age.
     
    Last edited: 29th Mar, 2016
  2. lewy89

    lewy89 Well-Known Member

    Joined:
    2nd Mar, 2016
    Posts:
    92
    Location:
    Brisbane
    Well I am only 26 however I get bored pretty quickly so I keep myself busy. Can't imagine myself retiring before I am 65. I will be on close to 200k through my job (not including IP's) before I'm 30 so I don't think its feasible to expect that much in retirement - nor am I aiming for that much.

    I'm pretty laid back and don't need much to keep me happy, as long as I have enough to go to the local, put a few bets on and have a few beers I think I would be content.
     
    SOULFLY3 and Terry_w like this.
  3. kierank

    kierank Well-Known Member

    Joined:
    20th Jan, 2016
    Posts:
    1,016
    Location:
    Brisbane
    @Terry_w, I assume you mean 'after-tax' money to live on
     
  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,975
    Location:
    Sydney
    Wouldn't make any difference would it?

    I suppose taking super into account it might so yes after tax income - really living expenses is what I am after.
     
    kierank likes this.
  5. Ed Barton

    Ed Barton Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,122
    Location:
    Brisbane
    Of course I'd want more. But considering I currently spend less than I earn and still have a good lifestyle I certainly only need less.
     
    Terry_w likes this.
  6. kierank

    kierank Well-Known Member

    Joined:
    20th Jan, 2016
    Posts:
    1,016
    Location:
    Brisbane
    Don't forget $200k as a self-funded pension is a lot more in your pocket than a $200k salary as the pension will be tax free.

    And you will be forced to take at least $200k as a pension if your balance is $5M
     
    Seal and Terry_w like this.
  7. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    1,516
    Location:
    Sydney
    Why would anybody want less?
     
  8. sanj

    sanj Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,142
    Location:
    Perth
    definitely for me, i live somewhat excessively at times but ultimately I haven't had kids and am not married, i anticipate needing more income because of that. also plan to move less from a capital growing focus to an income generating one, currently generating returns I'm pretty happy with but they're patchy instead of regular and often of a capital nature. have started that process but don't anticipate large (as in well into 6 figures) regular passive-ish income for a few years. that's fine though since I've chosen to go down that path for now and in a few cases chosen equity over fees/income.

    I'm sure once I'm married or have kids I'll transition across quicker but am heading in that direction already and I do really enjoy what I do. I'm not in the position to be able to continue to live as I do without doing any work unless I liquidate lots and put into income generating assets but I'd have less fun doing that.
     
  9. kierank

    kierank Well-Known Member

    Joined:
    20th Jan, 2016
    Posts:
    1,016
    Location:
    Brisbane
    Ah, you mean living expenses. I assume you mean non-discretionary living expenses.

    As you know, I am a self-funded retiree and part of the fun of being in this situation is to find out ways to spend our discretionary funds = the balance between our pension and our non-discretionary living expenses
     
  10. sanj

    sanj Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,142
    Location:
    Perth
    well arguably if someone has say 3 school going kids now and is paying a mortgage in retirement they could have less income than now but more disposable income if it's just them or a spouse with a paid off house.

    100k for 2 people without any dependant kids or a mortgage would go a lot further than 150k with all the above extra expenses.

    plus retirement as terry has defined it doesn't mean you lose the ability to make money, if anything it frees you up to make more imo.

    jobs often get in the way of making money.
     
  11. Ed Barton

    Ed Barton Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,122
    Location:
    Brisbane
    So they can retire earlier.
     
  12. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    1,516
    Location:
    Sydney
    Doesn't mean they want less, just means they are not willing to give any more of their time for more money.
     
    Adele, SOULFLY3, ellejay and 3 others like this.
  13. HomePage

    HomePage Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    140
    Location:
    Queansbeans, NSW
    Simply because they will not need all of what they earn now to do everything they want to do then.
     
  14. Beyond Wealth

    Beyond Wealth Active Member

    Joined:
    18th Jun, 2015
    Posts:
    43
    Location:
    Vic
    Given I've consistently saved about half my net income most of my working life, I need about half
     
  15. Ed Barton

    Ed Barton Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,122
    Location:
    Brisbane
    I'm guessing that's point of Terry starting this thread.
    EG Are you willing to retire at 40 on half your income, 50 on same, 60 on double or 70 on
    triple.
     
  16. pinkboy

    pinkboy Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    912
    Location:
    Mackay, Qld
    Agree.

    Time is a finite resource - you must find the balance between precious time, and something as common as money.

    pinkboy
     
    KJB, Adele, WattleIdo and 5 others like this.
  17. HomePage

    HomePage Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    140
    Location:
    Queansbeans, NSW
    Incomes are an upwardly moving target throughout our lives. People get fixated on current income as their reference for a retirement income, whereas anticipated future expenses should be used to work out what retirement income should be.
     
  18. Hanison

    Hanison Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    242
    Location:
    Brisbane
    I voted more.

    More is not a figure, its a challenge.
    50 on double is my target. With a scope to then double that again before I kick the bucket.
    However retirement to me would simply be a name for it. I don't see myself ever ceasing to work.

    It's not that I am a workaholic, although some people would surmise otherwise.
    It's that if I stop for more than 10mins, boredom quickly sets in. I must keep earning and learning.
     
    SOULFLY3 likes this.
  19. Ed Barton

    Ed Barton Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,122
    Location:
    Brisbane
    Are you saying your current wage is $50k you want to earn a retirement income of $100k and get that up to $200k before death?
     
  20. MTR

    MTR Well-Known Member Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    7,381
    Location:
    Perth, Melbourne, USA
    I know its cliché but if you are passionate about property and good at it, by this can continue to make money why give it up. Most investors I have met that reach financial freedom never stop.

    MTR:)