How do you know if you’re ready for retirement?

March 29th 2017 | Categories: Retirement |

Campers gathered around a campfire

When are you truly ready to retire? Quitting the workforce and settling down for the rest of your years is a huge decision, and a very difficult one. How much is enough? What if you want to retire before 65? Is it even financially sustainable?

At Invest Blue, we work with people to help them achieve a full and comfortable retirement. It’s a process that begins early in life, but here are some of the signs your retirement journey is ready to unfold.

1) You have enough assets

Financial stability is the bedrock of a happy retirement, and it’s something the Association of Superannuation Funds Australia (ASFA) has put down in a rock-solid figure.

As of September 2016, a single person looking to retire at 65 would need about $23,000 per year to live a “modest” lifestyle. For couples, this figure is just above $34,000 annually. A comfortable retirement (including domestic or international travel, private health insurance, and other luxuries) is more expensive – $43,000 for a single retiree and $59,000 for couples.

When do you know if you are ready to start enjoying retirement?When do you know if you are ready to start enjoying retirement?

Using this, you can measure your assets and work out roughly how long (and at what level of comfort) you can retire. Remember this is a guide – your idea of ‘comfortable’ will be unique. We recommend that you talk to our financial advisors to see how you can structure your finances and make the right plan to live comfortably.

2) You can draw enough from your super

Your superannuation will provide you with the pension that sustains your retirement – but do you have enough set aside? ASFA says that among those aged 60-64, the average super balance is $214,121. However, there’s a big gap between the mean balances for men ($292,510) and women ($138,154).

Your pension doesn’t have to be the only thing that gets you a comfortable or modest lifestyle in retirement – but feeling good about what you can draw down is a sign you might be ready to retire.

3) You are emotionally ready

Careerists beware – you’ll have to retire at some point!

Careerists beware – you’ll have to retire at some point! Of course, many people do stay in their jobs long past the age of 65, simply because they love it. And this is absolutely fine – you have to be emotionally ready to retire.

When you settle down, you’re completely changing your lifestyle. You have more time to do what you want, no work obligations, and may even be downsizing homes or moving to a new part of the city or country. It’s a big change, and you want to be ready for it. Don’t force yourself just because you feel like it’s time.

If you want clarity on what you need for retirement, or aren’t sure if you are ready, come and talk to the team at Invest Blue. We can lay out clear goals and milestones, helping you make the most of your later years.


What you need to know

This information is provided by Invest Blue Pty Ltd (ABN 91 100 874 744). The information contained in this article is of general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regards to those matters and seek personal financial, tax and/or legal advice prior to acting on this information. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relations to products and services provided to you.