How much after tax income do you need in retirement (PPOR paid off)?

[HandyAndy888]

An interesting poll following up on the popular thread of late.

Details:
After tax amount.
Car/s and PPOR paid off.
Rates about $3000/year
You and partner only.

Please be realistic...

 

[MCS_80]

No idea really. We plan and hope to retire from the rat race approximately 10 years after the purchase of our first IP. We plan to buy our first IP within 5 years so using that we should retire in 15 years. With the cost of living going up and up, id say with our modest lifestyle we would be comfy and happy with $1500-$2500 per week. We would "need" less but we "want" this amount to live a happy comfortable life.

Thanks for the reminder, we need to work out how we are going to afford our 1st IP by 2015.

Cheers

Mick

 

[alexlee]

The question is not how much one needs. The question is how much one WANTS.

 

[The Y-man]

The question is not how much one needs. The question is how much one WANTS.

Correct - I have based my response on need = "minimum requirements".

Kinda like the minimum hardware specs you find on the side of software boxes (it'll run - like a tortoise...)

The Y-man

 

[agent007]

With the cost of living going up and up,

It is not the cost of living going up and up but, the power of our currency being eroded by the tax called inflation. In fact, the price of many products go down and down in real terms through technology and mass production. Therefore, the quicker you get your asset base target the better

 

[devo76]

$1000 to $1500 and that would be a great lifestyle not a poor one. Beauty of living regional people. I could survive on close to $500 but it would not be much of a life.

 

[HandyAndy888]

The question is not how much one needs. The question is how much one WANTS.

Incorrect....it says "need" not "want"...

 

[alexlee]

Incorrect....it says "need" not "want"...

YOUR question is how much one needs, true. I think the more interesting question is how much one WANTS, and how does one distinguish the two?

Usually, people don't need much. But they want a lot.

 

[MCS_80]

According to the Goverment, what we "Need" is approx $40,000 PA at the moment. That is for a family consisting of 2 adults and 1 child.

We recently applied for Government payments to help us while we are on single income with new born baby and mortgage, we got denied as the Government believe I earn enough and am not within the means testing they do.

Cheers

Mick

 

[Bargain Hunter]

HandyAndy888,

What income does anyone really need to survive. I could probably sell up today move to some remote beach, fish each day and have enough to get by without ever working again. If that is what I wanted to achieve in life I should have made my mind up years ago and went on the dole.

However I want to travel when I retire. What passive income would I need to do do that?

Even if I go backpacking it is obvious that I would need a to be in the higher bracket based on the current value of the dollar.

Regards

Andrew

 

[HandyAndy888]

HandyAndy888,

What income does anyone really need to survive. I could probably sell up today move to some remote beach, fish each day and have enough to get by without ever working again. If that is what I wanted to achieve in life I should have made my mind up years ago and went on the dole.

However I want to travel when I retire. What passive income would I need to do do that?

Even if I go backpacking it is obvious that I would need a to be in the higher bracket based on the current value of the dollar.

Regards

Andrew

I suppose the question here is the definition between need and want. In your case, you "need" the money because you want to travel. Am I right?

 

[steveadl]

Incorrect....it says "need" not "want"...

Huh? Well then who would 'need' $3,500 a week short of a person on 3 life support machines with 24hr care and 50 bottles of pills per week?

I doubt anyone would 'need' much more than about say $1-300 per week if they owned their own home. Wouldn't be much of a life though, living on cans of tuna every day and never leaving the house.

 

[Rob Williams]

Wouldn't be much of a life though, living on cans of tuna every day and never leaving the house.

No worse than the life I have now.
What's wrong with Tuna, anyway? Tuna & baked beans are a very balanced diet.

 

[MCS_80]

No worse than the life I have now.
What's wrong with Tuna, anyway? Tuna & baked beans are a very balanced diet.

Im with you Rob. We live "thrifty" and have cracked our far share of tuna cans. Only trouble is, we have'nt purchased our 1st IP yet, even with such "thrifty" eating

It will come one day

Cheers

Mick

 

[The Y-man]

Im with you Rob. We live "thrifty" and have cracked our far share of tuna cans. Only trouble is, we have'nt purchased our 1st IP yet, even with such "thrifty" eating

It will come one day

Cheers

Mick

Mick, you must be paying full price for John West. Go to NQR

Cheers,

The Y-man

 

[Rob Williams]

Im with you Rob. We live "thrifty" and have cracked our far share of tuna cans. Only trouble is, we have'nt purchased our 1st IP yet, even with such "thrifty" eating

It will come one day

Cheers

Mick

I'm pretending to be one of the masses (using the "tuna" line) as people get very uncomfortable when confronted with the success of others.
However, I'll let you in on a little secret .... I actually upgraded from tuna to pink salmon last year. This change was due, in part, to the record low interest rates, but also due to the fact that I got tired of tuna.

You'll get there, Mick. You're staying on track, keeping your focus (which you should never lose) and you're getting your mindset int he right space.

It will come, one day, as you say, but it will come much sooner the better prepared you are.

 

[joanmc]

I'm pretending to be one of the masses (using the "tuna" line) as people get very uncomfortable when confronted with the success of others.
However, I'll let you in on a little secret .... I actually upgraded from tuna to pink salmon last year. This change was due, in part, to the record low interest rates, but also due to the fact that I got tired of tuna.

You'll get there, Mick. You're staying on track, keeping your focus (which you should never lose) and you're getting your mindset int he right space.

It will come, one day, as you say, but it will come much sooner the better prepared you are.

and one day soon Rob you will graduate to red salmon, then you will know you are rich! lol

 

[PeterC]

looks like people have a lot of expensive 'needs' (i think some are confused with need vs want...). $1000+ to cover needs is ridiculous.

how much id 'want' to have, thats another thing, but you (a single person) would only need a few hundred per week max to survive, know heaps of people surviving on much less.

 

[Dazz]

After tax amount.
Car/s and PPOR paid off.
Rates about $3000/year
You and partner only.

Please be realistic...

We are pretty much in this situation except have school age kids.

5K pcm does the trick comfortably at the moment.

Once kids are gone, I envisage 3.5 to 4K pcm would be more than adequate.

 

[jacbmw]

mmm, my targets are big ($3.5k+pw) in 2017, but that includes leases for all liabilities (ie. boat, car, moorings etc) as I wouldn't pay cash to minimise taxes...

So without leaving east Sydney and with an extra 3 mouths to feed, and schooling and the above ($3.5k pw for the family is about right)...

Now this all might sound presumptuous or excessive, but isnt the reason why we are all active investors is to achieve our desired lifestyle. I have just looked at what I would like, and worked my way back from there on track so far...It has to be ambitious (to be motivation) but not to unrealistic (to be demorilising)...

I also see a very fine line between need and want as we could almost all get everything we needed on the poverty line, so I define need as that which satisfies mental sanity as well as my physical requirements (and my families)...