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

[kathryn d]

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?

Some people have no idea how to legally use deductions to their advantage.
So this, IMHO, is a very valid comment.

 

[Deltaberry]

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.

Well in that case maybe we'll just never retire - I can't envisaging selling everything and just sitting there and relaxing.

Without comparing ourselves and by no means trying to compare ourselves with the Forrests or Palmers of this country, I guess you could say the same about them.

 

[jaycee]

Well in that case maybe we'll just never retire - I can't envisaging selling everything and just sitting there and relaxing.
Without comparing ourselves and by no means trying to compare ourselves with the Forrests or Palmers of this country, I guess you could say the same about them.

I hope there will be a period in my life where I can actually do this at least the "just stitting there and relaxing" without having to worry about running businesses

 

[Deltaberry]

Part of having a business for older people means having something to do - even if they're not doing much. I think of what my mum does on a daily basis:

10:00am: wake up go for a walk
11:00am: get back home, shower and get changed and try clothes
12:30pm: go to her office in CBD, speak to the secretaries, handy some small issues like making sure someone has paid rent or following up on some license renewal somewhere
1:00pm: go have lunch
3:30pm: come back from lunch and go shopping at Myers/DJs/drive around
4:30pm: afternoon tea
5:30pm: watch some random TV show like Deal or no Deal
6:00pm: go home

My father:

9:00am: wake up and exercise
10:00am: watch TV
12:30pm: reach the CBD office with mum
1:00pm: have lunch with mum
2:30pm: meets some random person who thinks he's got a buyer lined up overseas to buy an iron ore mine or take over some development site
4:00pm: after wasting 1.5 hours with the random, go have afternoon tea with mum at the hotel across the road
5:30pm: pay a surprise visit to one of the businesses (random selection) and talk to the manager for half an hour until the guy is visibly distressed
6:00pm: mum drives by to pick him up and go home

So even though they don't actually 'do' anything (relatively to me anyway), they think they are doing something so feel fulfilled about their day. Around 10 years ago I remember my father said he wanted to 'retire' (ie stay home and relaxed and do gardening). Anyway he did that for around 4 days and he looked like he was about to be sent into ER at a hospital at the end of the 4 days. We told him to get out of the house and go back to his office and stress about his profits. He looked a lot healthier within 2 days of doing that.

 

[jaycee]

Part of having a business for older people means having something to do - even if they're not doing much. I think of what my mum does on a daily basis:

10:00am: wake up go for a walk
11:00am: get back home, shower and get changed and try clothes
12:30pm: go to her office in CBD, speak to the secretaries, handy some small issues like making sure someone has paid rent or following up on some license renewal somewhere
1:00pm: go have lunch
3:30pm: come back from lunch and go shopping at Myers/DJs/drive around
4:30pm: afternoon tea
5:30pm: watch some random TV show like Deal or no Deal
6:00pm: go home

My father:

9:00am: wake up and exercise
10:00am: watch TV
12:30pm: reach the CBD office with mum
1:00pm: have lunch with mum
2:30pm: meets some random person who thinks he's got a buyer lined up overseas to buy an iron ore mine or take over some development site
4:00pm: after wasting 1.5 hours with the random, go have afternoon tea with mum at the hotel across the road
5:30pm: pay a surprise visit to one of the businesses (random selection) and talk to the manager for half an hour until the guy is visibly distressed
6:00pm: mum drives by to pick him up and go home

So even though they don't actually 'do' anything (relatively to me anyway), they think they are doing something so feel fulfilled about their day. Around 10 years ago I remember my father said he wanted to 'retire' (ie stay home and relaxed and do gardening). Anyway he did that for around 4 days and he looked like he was about to be sent into ER at a hospital at the end of the 4 days. We told him to get out of the house and go back to his office and stress about his profits. He looked a lot healthier within 2 days of doing that.

OK, you've pretty much convinced me...

 

[Oscar]

I ran a budget a few years ago, and found you can live very well in Sydney on anything between $4,000 and $6,000 per month. This allowed us o/s travel to US and europe and generally a very comfortable and rewarding lifestyle.

So if I "retired" tomorrow, $8,000 per month would do me, say $2,000 per week. That's about 100K per year after tax.

 

[Lily House]

I thought this article was interesting:

http://www.news.com.au/money/thats-rich-were-better-off-than-we-think/story-e6frfmci-1226076831919

28% of households with incomes over $250K class themselves as middle-income earners.

Wants versus needs. Perception versus reality.