Most people don’t know how much they have and how much they need in order to ensure they can live a great retirement. Many think: I’ll deal with it later – my company is deducting money each month so i’m sure it’ll be ok.
In my experience, the company retirement deduction is never enough. And certainly not enough to live at a similar level of spending as you do today. Only 6% of people will ever be able to live to the same standard as they do now.
For others, they know they haven’t got enough. But it’s easier not to engage with the topic. Mostly out of fear that the life changes will be too hard. Like going on a starvation diet. But each day that passes is one less day for that money to grow. And the ‘someday’ when they were going to start never happens.
Knowing The Numbers helps you know what options are available to you. Having more time allows for more options. So the sooner you know The Numbers, the more ways there are of getting you to be able to Live Your Best Life. It puts the control in your hands. Who knows – you may be pleasantly surprised!
How much is enough depends on 3 things
- How much do you need each month to live? Break this down into Needs, Wants, Nice to haves
- How long until you retire? And can you work in your retirement so you don’t need to draw down as much?
- How much, after tax and fees, is your money earning now? Most people have no idea whether their money is growing or not – assuming that once it’s invested, it will grow.
Think deeply on these three things. Every one of them makes a HUGE difference to how much you save. The longer you can work, the less you need to save. The less money you need to draw from your savings, the less money you need to save. And the more your money grows through investing, the less you need to save.