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Why save for Retirement? (Read 4649 times)
Zaddo
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Why save for Retirement?
May 16th, 2019 at 11:42am
 
I am struggling to justify saving for retirement.

If I do the right thing and save vigilantly. My wife and I should have a retirement income of 50-55k. And because we will be over the assets threshold, we don't get a cent from the government.

However, if I spend it all, I can have a pension of 37K.

So why should I bother to be a self-funded retiree, when I only get marginally more income than the pension will give me.

Granted, that extra 13-18k allows me to have some nice extras.  But if I make sure, I have a new car, new appliances, etc, before I retire, I will have the nice things for most of our retirement.

As a middle income earner, are there any reasons to try and self-fund retirement?  Or should I retire early, spend my money and grab the pension?

There seems to be very little incentive to avoid social welfare in retirement unless you are very wealthy.
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Jasin
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Re: Why save for Retirement?
Reply #1 - May 16th, 2019 at 12:01pm
 
Zaddo wrote on May 16th, 2019 at 11:42am:
I am struggling to justify saving for retirement.

If I do the right thing and save vigilantly. My wife and I should have a retirement income of 50-55k. And because we will be over the assets threshold, we don't get a cent from the government.

However, if I spend it all, I can have a pension of 37K.

So why should I bother to be a self-funded retiree, when I only get marginally more income than the pension will give me.

Granted, that extra 13-18k allows me to have some nice extras.  But if I make sure, I have a new car, new appliances, etc, before I retire, I will have the nice things for most of our retirement.

As a middle income earner, are there any reasons to try and self-fund retirement?  Or should I retire early, spend my money and grab the pension?

There seems to be very little incentive to avoid social welfare in retirement unless you are very wealthy.


Take your money and move to a nation where it is extended to last a lot longer. Maybe a Pacific Island to retire where your 55k becomes something like 155K for the rest of your life. A lot of other people do. Why waste your Retirement $$$ on an over-priced nation like Australia.

Australia is only supportive of the Aged via Britain.
But its Political future is its 'youth' - so when Australia folds into a Republic of many 'indie' little nations. Don't expect much 'Retirement Pensions' to be like what they are.
Get out while you can.
Only the Art industry will be where the money is come Republic. Atm - its just a 'default' support as a Southern Hemisphere version of UK/USA.
Vanuatu is nice. Cool
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AIMLESS EXTENTION OF KNOWLEDGE HOWEVER, WHICH IS WHAT I THINK YOU REALLY MEAN BY THE TERM 'CURIOSITY', IS MERELY INEFFICIENCY. I AM DESIGNED TO AVOID INEFFICIENCY.
 
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lee
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Re: Why save for Retirement?
Reply #2 - May 16th, 2019 at 12:05pm
 
Zaddo wrote on May 16th, 2019 at 11:42am:
If I do the right thing and save vigilantly. My wife and I should have a retirement income of 50-55k. And because we will be over the assets threshold, we don't get a cent from the government.


You do understand that as you draw down on your assets you become eligible for the pension?
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Zaddo
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Re: Why save for Retirement?
Reply #3 - May 16th, 2019 at 12:11pm
 
lee wrote on May 16th, 2019 at 12:05pm:
You do understand that as you draw down on your assets you become eligible for the pension?


Of course. My modeling for retirement is based on death at 90 and the phasing in of social welfare. But for the first 10 years of retirement, I get no social welfare based on current assets tests.

So why not just retire 10 years early.  And start getting the pension at retirement age.  The only down side is my income levels will be much lower.

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lee
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Re: Why save for Retirement?
Reply #4 - May 16th, 2019 at 12:13pm
 
Zaddo wrote on May 16th, 2019 at 12:11pm:
My modeling for retirement is based on death at 90 and the phasing in of social welfare. But for the first 10 years of retirement, I get no social welfare based on current assets tests.


That depends on your drawdown rate.

Need a new car? Modifications to your house for when you get older?
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Jasin
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Re: Why save for Retirement?
Reply #5 - May 16th, 2019 at 12:15pm
 
And everything you need in retirement is marked up in price.
Ever see the prices of those 'Aged' business's like Mobility Matters, etc. Oh, and the Aged Care facilities - they take 'everything' you own.

Take my advice. Leave Australia for Retirement.
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AIMLESS EXTENTION OF KNOWLEDGE HOWEVER, WHICH IS WHAT I THINK YOU REALLY MEAN BY THE TERM 'CURIOSITY', IS MERELY INEFFICIENCY. I AM DESIGNED TO AVOID INEFFICIENCY.
 
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PZ547
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Re: Why save for Retirement?
Reply #6 - May 16th, 2019 at 1:16pm
 
Jasin wrote on May 16th, 2019 at 12:15pm:
And everything you need in retirement is marked up in price.
Ever see the prices of those 'Aged' business's like Mobility Matters, etc. Oh, and the Aged Care facilities - they take 'everything' you own.

Take my advice. Leave Australia for Retirement.



The gold coast is filled with seniors.  Their kids from down south visit regularly.  Their elderly parents generally buy bigger than they need in order to accommodate their kids and grandkids

South east Queensland is a short hop by plane from Melbourne and Sydney.  Central Coast NSW is an even shorter hop or drive and the Central Coast also attracts lots of seniors

People don't usually want to move overseas when older because it means they'll see less of their kids and grandkids (and other considerations such as medical care, security, etc.)

When I lived on the coast I used to shake my head when new arrivals said they hadn't wanted to move further afield because they wanted to remain close to their kids/grandkids

when you get older, you understand why.  Sure, moving to where your money stretches further sounds attractive.  But not when it means you've spent most of your adult life close to your children, only to up and leave them -- for good in many instances -- because life is cheaper in a foreign land
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All my comments, posts & opinions are to be regarded as satire & humour
 
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Re: Why save for Retirement?
Reply #7 - May 16th, 2019 at 3:15pm
 
After the crap our wonderful politicians have been spouting
I see what you mean.

That's why, instead of living on 50k until I'm 88 when the money runs out
I think I'll retire next year
Live on 70k until the money runs out ( around 72)
And then live off the pension.

That way ill get some enjoyment from all my saving and f#$k the grubberment.
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I HAVE A DREAM
A WONDERFUL, PEACEFUL, BEAUTIFUL DREAM.
A DREAM OF A WORLD THAT HAS NEVER KNOWN ISLAM
A DREAM OF A WORLD FREE FROM THE HORRORS OF ISLAM.

SUCH A WONDERFUL DREAM
O HOW I WISH IT WERE TRU
 
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Zaddo
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Re: Why save for Retirement?
Reply #8 - May 16th, 2019 at 4:02pm
 
Valkie wrote on May 16th, 2019 at 3:15pm:
After the crap our wonderful politicians have been spouting
I see what you mean.

That's why, instead of living on 50k until I'm 88 when the money runs out
I think I'll retire next year
Live on 70k until the money runs out ( around 72)
And then live off the pension.

That way ill get some enjoyment from all my saving and f#$k the grubberment.


Eloquently put  Smiley and exactly how I feel!!

Frack the grubberment, if you have a lot they take nothing, if you have a little, they take half, if you have nothing, they give you everything. 

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BigP
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Re: Why save for Retirement?
Reply #9 - May 16th, 2019 at 4:05pm
 
Zaddo wrote on May 16th, 2019 at 11:42am:
I am struggling to justify saving for retirement.

If I do the right thing and save vigilantly. My wife and I should have a retirement income of 50-55k. And because we will be over the assets threshold, we don't get a cent from the government.

However, if I spend it all, I can have a pension of 37K.

So why should I bother to be a self-funded retiree, when I only get marginally more income than the pension will give me.

Granted, that extra 13-18k allows me to have some nice extras.  But if I make sure, I have a new car, new appliances, etc, before I retire, I will have the nice things for most of our retirement.

As a middle income earner, are there any reasons to try and self-fund retirement?  Or should I retire early, spend my money and grab the pension?

There seems to be very little incentive to avoid social welfare in retirement unless you are very wealthy.



Get yourself a safe deposit box and start converting your assets into precious metals ,,The sooner you start the better
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Re: Why save for Retirement?
Reply #10 - May 16th, 2019 at 4:16pm
 
Zaddo wrote on May 16th, 2019 at 4:02pm:
Valkie wrote on May 16th, 2019 at 3:15pm:
After the crap our wonderful politicians have been spouting
I see what you mean.

That's why, instead of living on 50k until I'm 88 when the money runs out
I think I'll retire next year
Live on 70k until the money runs out ( around 72)
And then live off the pension.

That way ill get some enjoyment from all my saving and f#$k the grubberment.


Eloquently put  Smiley and exactly how I feel!!

Frack the grubberment, if you have a lot they take nothing, if you have a little, they take half, if you have nothing, they give you everything. 




Let's face it.  What do you need in retirement?  A warm bed, under a roof, a fridge, capacity to buy food, have access to decent health support...and Bob's yer Uncle.
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Re: Why save for Retirement?
Reply #11 - May 16th, 2019 at 4:18pm
 
What a lot of people aren't addressing is what they really want to DO in their retirement. Start considering that before worrying about how much money you think you will need!

Retirement isn't about living and spending like you do "now", there's lots of stuff you don't "need" when you are 65+, should you live that long.  Wink

If all you want to do is play the odd game of golf, take a Cruise every so often, buy a new car every few years until your eyesight fails and you can no longer drive, you really don't "need" $60,000 plus a year.

Will you dine out and entertain on a weekly basis, or just take walks along the local beach?

How many new clothes and shoes, etc do you think you will need? Not much, believe me.  Smiley

Will you really need to buy all that new furniture?

Retirement is, usually, a time to RELAX and enjoy the grandchildren, if you have any. Have friends over for a BBQ, take an annual holiday "somewhere", have FUN and hang about Forums such as this.  Grin
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Re: Why save for Retirement?
Reply #12 - May 16th, 2019 at 4:27pm
 
Aussie wrote on May 16th, 2019 at 4:16pm:
Zaddo wrote on May 16th, 2019 at 4:02pm:
Valkie wrote on May 16th, 2019 at 3:15pm:
After the crap our wonderful politicians have been spouting
I see what you mean.

That's why, instead of living on 50k until I'm 88 when the money runs out
I think I'll retire next year
Live on 70k until the money runs out ( around 72)
And then live off the pension.

That way ill get some enjoyment from all my saving and f#$k the grubberment.


Eloquently put  Smiley and exactly how I feel!!

Frack the grubberment, if you have a lot they take nothing, if you have a little, they take half, if you have nothing, they give you everything. 




Let's face it.  What do you need in retirement?  A warm bed, under a roof, a fridge, capacity to buy food, have access to decent health support...and Bob's yer Uncle.


Bobby will go to sleep with a smile on his dial tonight ..


You are right Aus, food a bed, what more do you need ?
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Bias_2012
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Re: Why save for Retirement?
Reply #13 - May 16th, 2019 at 5:40pm
 
Aussie wrote on May 16th, 2019 at 4:16pm:
Let's face it.  What do you need in retirement?  A warm bed, under a roof, a fridge, capacity to buy food, have access to decent health support...and Bob's yer Uncle.



In an age care home that's under investigation by a Royal Commission?
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Our Lives Are Governed By The Feast & Famine Variable
 
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cods
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Re: Why save for Retirement?
Reply #14 - May 16th, 2019 at 5:45pm
 
Bias_2012 wrote on May 16th, 2019 at 5:40pm:
Aussie wrote on May 16th, 2019 at 4:16pm:
Let's face it.  What do you need in retirement?  A warm bed, under a roof, a fridge, capacity to buy food, have access to decent health support...and Bob's yer Uncle.



In an age care home that's under investigation by a Royal Commission?



at the end of the day  ....if you live long enough to end in agedcare.. you have done pretty well...

not everyone gets to be OLD...we wear out its no ones fault  my only wish Is I am not a burden to my family...I want to go quick.......but then who doesnt!

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