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

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

  • $0/week - $100/week

    Votes: 2 1.1%
  • $100/week - $200/week

    Votes: 0 0.0%
  • $200/week - $300/week

    Votes: 3 1.6%
  • $300/week - $400/week

    Votes: 1 0.5%
  • $400/week - $500/week

    Votes: 4 2.1%
  • $500/week - $700/week

    Votes: 21 11.2%
  • $700/week - $1000/week

    Votes: 27 14.4%
  • $1000/week - $1500/week

    Votes: 52 27.8%
  • $1500/week - $2500/week

    Votes: 41 21.9%
  • $2500/week - $3500/week

    Votes: 13 7.0%
  • $3500/week +

    Votes: 23 12.3%

  • Total voters
    187
cant you do both VY? teach them financial literacy and support them at times?

i do agree that blindly giving your kids money is a recipe for disaster but surely a combination of the 2 would see them streets ahead of most
 
The best help you can give your kids is teaching them financial literacy. Statistically, kids who receive financial help from parents end up worse off than those who don't.

Planning to earn enough money to be able to help uyou kids if / when you want to later in their lives than when they are children surely wouldn;'t stop you from teachign them financial literacy whiost they are chidlren / young adults etc ?
 
The best help you can give your kids is teaching them financial literacy. Statistically, kids who receive financial help from parents end up worse off than those who don't.

great advice their.

In response to the thread starters question

http://www.superannuation.asn.au/RS/default.aspx

A westpac study shows the following

Comfortable lifestyle for couple: $53,879
Comfortable lifestyle for couple: $39,393

Data from Dec 2010

Comfortable retirement lifestyle –
Enabling an older, healthy retiree to be involved in a broad range of leisure and recreational activities and to have a good standard of living through the purchase of such things as; household goods, private health insurance, a reasonable car, good clothes, a range of electronic equipment, and domestic and occasionally international holiday travel.



I could live on 40k after tax quite nicely, i am shooting abit higher tho

regards,

RH
 
I'm just trying to encourage anyone who really wants to retire, if your home is paid off, it doesn't cost that much.

There is so much available free for the asking.
People want to get rid of good stuff...and not always to "charity".

It doesn't cost that much even if you don't have a PPOR at all.

We can always live in commission flats, draw Centrelink and eat $2 sandwiches for lunch I guess.

Even if you upped the ante, you can always restrict your expenses to $5 per lunch quite easily - last I checked a McDonalds 6 nugget pack is not that expensive.
 
My husband and I have talked about this before and he thinks we need $200Kpa after tax to live on. I find this hilarious because we don't spend even a quarter of that now! Based on what we spend now, I think his $200K is broken up as follows (he doesn't have to agree with me for me to know I'm right) :)

$50Kpa - living expenses - food, electricity, other bills etc. On this amount, we could also afford one overseas holiday per year.
$150Kpa - money we would never actually spend, but it would stop him from feeling insecure about money.

But although we could afford to retire (based on my $50K, not his $200K) our main issue is, if we did retire, what would we do? Neither of us are that passionate about our corporate jobs (nor do we hate them), but we aren't sure what we would do instead. Retiring is actually a bit frightening for us!
 
CDro,
If you self managed your properties, there would always be maintenace and repairs. Always cleaning after they vacate :)

I do understand what you are saying though.
I find hobbies boring...unless it has to do with properties.
 
Interesting discussion. I believe retirement planning doesn't involve just financial planning but should be about lifestyle planning. And then peg the $ to the style. Altruistic but I reckon it works.

We've got ours worked out -
  • One overseas trip per year - just the simple 10-14 day package tour on special
  • Visit one new place in Australia every year - 14 days
  • Camp on Nth Straddie (or similar) for 1 month a year
  • 1 project a year - be that a reno, a development or something active and mind stimulating. Only short 6-8 week sort of thing but something challenging
  • Holiday at home - 10-14 days blobbing and holidaying in your own home
  • And in between, Grey nomading

Now between all this, birthdays, Grandkids, gardens, fishing, Xmas, - thats a full on active lifestyle.

I believe for this, we need $100k pa in todays money. I also believe that we will never retire in the traditional sense. There will always be a project, a locum job, a challenge. If you dont use it, you loose it and even if we have to pay for assistance, we intend to use it until they put us in a box. :)
 
180k a year after tax, so $3,400 a week in 2011 dollars. I won't be suprised if I call it a game by 3K, but that's the aim.

For my partner and I, retirement without living is not retiring at all.

Cars, holidays (not to the Gold Coast. The world.), a nice house. It all costs money.

I'm on the way. :)
 
so once you've determined the income level, I guess next comes the source of that income. Am i to assume that most people here are planning on having property to generate that level of income per week? What strategy/ies do you plan to use to draw that income level?
 
so once you've determined the income level, I guess next comes the source of that income. Am i to assume that most people here are planning on having property to generate that level of income per week? What strategy/ies do you plan to use to draw that income level?

Source: Shares (Listed investment companies), they generally have some cash reserves and can keep dividends steady if payouts from underlying businesses drop Eg. During GFC dividends where cut around 30%, some of the larger lics continued to pay the same dividend from retained earnings. They have diversified portfolios (depending on the LIC).

I don't plan to draw on capital to fund the retirement, don't plan to have much debt either.

Regards,

RH
 
If me and the missus had PPOR covered and $40K/yr, we'd be set I reckon. The rest is just ice cream. Who wants a job!
 
great advice their.

In response to the thread starters question

http://www.superannuation.asn.au/RS/default.aspx

A westpac study shows the following

Comfortable lifestyle for couple: $53,879
Comfortable lifestyle for couple (SHOULD BE SINGLE): $39,393

Data from Dec 2010

Comfortable retirement lifestyle –
Enabling an older, healthy retiree to be involved in a broad range of leisure and recreational activities and to have a good standard of living through the purchase of such things as; household goods, private health insurance, a reasonable car, good clothes, a range of electronic equipment, and domestic and occasionally international holiday travel.



I could live on 40k after tax quite nicely, i am shooting abit higher tho

regards,

RH

Just an edit to this which i can't do now is bolded and in red
 
Bugger property, unless things go south for a couple years then I might consider it as a vehicle. I personally am going down the share route, as tax wise it yields much better. I was initially going to gear and cycle through small cap profits into LIC's however I've decided that running my own portfolio will yield superior results to the LIC's.

It's all about the yield, baby.
 
Bugger property, unless things go south for a couple years then I might consider it as a vehicle. I personally am going down the share route, as tax wise it yields much better. I was initially going to gear and cycle through small cap profits into LIC's however I've decided that running my own portfolio will yield superior results to the LIC's.

It's all about the yield, baby.

I think property has its place in a portfolio, below for myself:

* more so during initial stages (building portfolio)
* less so during transition to retirement (more of an income focus)

I prefer LIC's over direct holdings because i don't have to spend as much time monitoring the holdings. The LIC's have a team of people reviewing the portfolio daily and have alot more individual holdings then an ordinary person would (say in average joes portfolio he might have 10-15 direct holdings, a bigger LIC might have 150).

When making a decision to purchase a LIC i usually look at broker research on the larger holdings to help determine value and then i look at premium/discount to NTA of the individual LIC

Regards,

RH

Edit: Obviously if you are good at the share picking thing and can dedicate some time to it (such as IV on this forum) then you would probably opt to DIY
 
so once you've determined the income level, I guess next comes the source of that income. Am i to assume that most people here are planning on having property to generate that level of income per week? What strategy/ies do you plan to use to draw that income level?

Business is the best way to generate that sort of income. What yield you going to get on your property? I'll give you 10%... does that sound good? Someone mentioned shares. What yield you want on that? 10% franked? Need a fair bit of capital to yield anything remotely necessary for comfortable retirement, not to mention your yield as at the whim of management and you're exposed to share price depreciation.

One of the family's more successful ventures in the last 3 years yields around 180% pa on initial investment, with a 20-year lease. As usual we're not talking about some little $100k investment

Should read the front page of the AFR yesterday for motivation.
 
Business is the best way to generate that sort of income. What yield you going to get on your property? I'll give you 10%... does that sound good? Someone mentioned shares. What yield you want on that? 10% franked? Need a fair bit of capital to yield anything remotely necessary for comfortable retirement, not to mention your yield as at the whim of management and you're exposed to share price depreciation.

One of the family's more successful ventures in the last 3 years yields around 180% pa on initial investment, with a 20-year lease. As usual we're not talking about some little $100k investment

Should read the front page of the AFR yesterday for motivation.

ummmm 6.5% (grossed up with franking credit) :eek:. This is actually lower then what i'm paying on my mortgage.

Your right on that i will need a fair bit of capital for retirement (probably 1million in todays $$$).
 
Business is the best way to generate that sort of income. What yield you going to get on your property? I'll give you 10%... does that sound good? Someone mentioned shares. What yield you want on that? 10% franked? Need a fair bit of capital to yield anything remotely necessary for comfortable retirement, not to mention your yield as at the whim of management and you're exposed to share price depreciation.

One of the family's more successful ventures in the last 3 years yields around 180% pa on initial investment, with a 20-year lease. As usual we're not talking about some little $100k investment

Should read the front page of the AFR yesterday for motivation.

Isnt retirement when you relinquish your buisiness interests?
 
Isnt retirement when you relinquish your buisiness interests?

Nah - I think our portfolio of businesses all self operate now though every 3 months or so you'd have to attend to some small issue like senior management throwing tantrums or something like that.

Usually the only person who goes there is me, and that's because I want to eat/use facilities for free. But I hope my presence makes an emotional difference at least.
 
Nah - I think our portfolio of businesses all self operate now though every 3 months or so you'd have to attend to some small issue like senior management throwing tantrums or something like that.

Usually the only person who goes there is me, and that's because I want to eat/use facilities for free. But I hope my presence makes an emotional difference at least.

If thats the case I was retired 20 years ago, living in the Philippines on less than $100 a week. Could probably do it to-day for a coupla hundred. Then it was 60c a night on a pristine leyte beach near natural fresh water pool beer $2.20 a case, rum 17c a bottle. Yep could have a good party for 50c. Airfares any-where about $20. Pent house at Marmont Hotel Olongopo about $120 a month. Met aussie pensioners living there on 60c a day 30c for food and 30c for accommodation. Which is why I invested aggressively. I Knew I could live on bugger all and be happier than those poor people slaving away for $100k a year. I Just cant beleive these people who say they need $3,500 K after tax a week. I find the question nonsensical, the more of your income you pay tax on the less you have to fund lifestyle. The question should be How much net income you need, as you can reduce your tax by acquiring appreciating assets, and increase your net wealth and live on equity. You can pay no more than 30c in the dollar tax and increase your netwealth by hundreds of thousands. You can have money in Super and not pay any tax on the income from it. I would consider retirement is when you sell your buisness,stop actively investing sit around doing nothing and drinking cups of tea all day. When you can crap yourself and grab nurse on the **** and be able to get away with it.
 
I Just cant beleive these people who say they need $3,500 K after tax a week. I find the question nonsensical, the more of your income you pay tax on the less you have to fund lifestyle. The question should be How much net income you need, as you can reduce your tax by acquiring appreciating assets, and increase your net wealth and live on equity.

I do not understand this.
The question of this thread was, How much net income do you need?
What has tax got to do with it?
 
Top