There are a few things to consider before you can answer the above question with confidence.
- Have I saved enough money?
The general aim for a comfortable retirement is to have saved enough money to be able to retire at 75% income of your pre-retirement income OR having saved a capital sum of 17 x your last year of pre-retirement’s income.
- How is my health?
Health plays a big role in planning. We know things can change quickly, but if you are healthy and your family has been blessed with long life, your chances are good that you would follow in their footsteps. Mortality tables have shown an increase in life expectancy over the years and the following is an indication according to research: 50% of pensioners still live for 20 years after retiring at age 65, 20% live for more than 30 years (age 95) and 10% live beyond 100 years of age!
- Inflation and the cost of living in retirement.
When we do the calculations, our assumptions must be realistic and correct. It makes a big difference in the outcome. Wealth should be measured in buying power.
Speaking to your financial advisor can make a big impact on the outcome of your retirement planning. We can help you plan according towards your goals, advise on any shortcomings, give you options on how to correct your strategy and give practical tips.
If you have any concerns or questions about your retirement, please do not hesitate to contact us for help.
Knowledge is power.