Estimating Your Financial Needs In Retirement | Sydney Financial

Estimating Your Financial Needs In Retirement

Australians are underestimating by up to 20 per cent the amount of money they’ll need in retirement, according to a new survey from an international investment manager.

The responses, collected from active Australian investors*, reveal a mismatch between the income people believe they need in retirement and the actual cost of living. Non-retired Australians expect living expenses will take up just 39 per cent of their retirement income, in reality it accounts for 58 per cent of expenditure, a gap of almost 20 per cent.

This stands in stark contrast to our Asian neighbours who were on point with their expectations of living expenses. Non-retired people in the region on average estimated they needed 32 per cent while retirees report actually needing 38 per cent.

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