I recently presented a seminar entitled “What is your retirement number?” to a keen audience of pre-retirees who are thinking about planning for retirement and how much they’ll need to retire.

This is a complex topic, and there is no one-size-fits-all answer to the question of how much money you need for retirement. However, there are certain factors that you need to consider to determine your retirement number.

One of the essential factors is to look at your current expenses. You need to know how much you are spending now to determine how much you will need in retirement. It’s important to keep in mind that some expenses may decrease in retirement, such as work-related expenses, while others may increase, such as healthcare expenses.

You’ll also need to consider your lifestyle expectations, deciding what kind of lifestyle you want in retirement. Do you want to travel extensively, or are you happy staying close to home? Do you want to downsize your home, or do you want to maintain your current residence? Your lifestyle expectations will have a significant impact on how much money you need for retirement.

Additionally, your health status is an important point to consider. Unfortunately, health issues can arise at any time, and it’s important to plan for them. Healthcare costs can be a significant expense in retirement, so it’s important to factor this into your retirement plan.

Lastly, develop a list of your overall retirement goals. What do you want to do in retirement? Do you want to, for example, volunteer, start a business, or spend time with family? Your retirement goals will help determine how much money you need to save.

Once you have considered these factors, you can begin to determine your “retirement number.” Keep in mind that this is not a fixed number – it may change over time as your circumstances change. It’s important to revisit your retirement plan regularly to ensure that you are on track to meet your retirement goals.

Retirement planning can be overwhelming but, with the right guidance, it can be a straightforward process. HLB’s advisers can help you navigate the complexities of retirement planning, ensuring that you can retire comfortably and with confidence, and can help navigate you on the path to achieving your required retirement number.

This article first appeared in the Winter 2023 issue of HLB Mann Judd Perth’s Client Alert.

Peter Speechley (ASIC No.246156) and HLB Wealth Pty Ltd (ASIC No. 428645) are Authorised Representatives of Paragem Pty Ltd ABN 16 108 571 875, AFSL 297276

Disclaimer: The information contained in this article has been provided as general advice only. The contents have been prepared without taking account of your personal objectives, financial situation or needs. You should, before you make any decision regarding any information, strategies or products mentioned in this article, consult your financial advisor to consider whether that is appropriate having regard to your personal objectives, financial situation and needs.