Do I Have Enough Money to Retire? Here’s How We Find Out

The most common question I get. Do I have enough to retire?
The answer comes down to projections.
A comfortable retirement costs around $78,000 a year for a couple and $57,000 for a single who owns their home. Those are our starting points.
From there we model three scenarios. An optimistic return of around 7.5%. A base case just over 5%. And a pessimistic case of around 1.7% over the next decade.
That pessimistic number accounts for a market crash of around 30% in the first two years, followed by another correction later in the decade. These things have happened before and they will happen again. We plan for them.
When we factor in your income, your investments, and any future inheritance, the projections tell us whether the money will last. But you have to do the work to find out.
That is what we are here for.
General advice only. Please consider your personal circumstances or speak with us before acting.
Robert Goudie is an Authorised Representative (No. 235974) of Consortium Private Wealth Pty Ltd (AFS Licence 495401)