Navigating Your Retirement Journey - A Practical Guide

Financial Planning Read time 3mins
18 Dec 2023
Now Reading: Navigating Your Retirement Journey – A Practical Guide
Embarking on the journey to retirement is a significant milestone filled with anticipation and complexity. At the heart of this journey is a clear understanding of your needs and goals, forming the foundation of a successful retirement plan. The guide below aims to demystify the process with pragmatic steps, which may assist to make it less overwhelming and help put a robust financial foundation in place for retirement.

Understanding your expenses and future lifestyle

While predicting future expenses in retirement isn’t an exact science, a practical starting point is to analyse your current spending patterns. Factor in your everyday living expenses as a baseline and add a buffer for factors like supporting children or aged care and those extra retirement indulgences – whether that’s globe-trotting, spoiling grandchildren, or simply enjoying your hobby.

The Australian Superannuation Funds Association (ASFA) offers valuable insights, serving as a crucial resource in your retirement planning. For instance, ASFA’s research indicates that a homeowner over 65 will require an annual income of $71,723.56 for couples and $50,981.27 for singles for a ‘comfortable’ retirement.

AFSA’s figures and measure of ‘comfort’ account for daily necessities such as utilities, social activities, local travel, and factors like an international trip every seven years. However, ‘comfort’ is subjective, and defining what it means to you is crucial in working with your adviser to craft a personalised retirement plan.

Tracking your path to retirement

Tracking your journey towards retirement is crucial, and your adviser can help you build periodic reviews into your plan to track your progress and, if required, alter your plan. According to ASFA, to reach this ‘comfortable’ retirement, you should aim to have reached retirement savings by age 67 of $690,000* for a couple and $595,000* for singles.

*Please note, this assumes that all capital will be drawn down, and a part Age Pension will be received by the retiree/s. AFSA have also assumed a 6 per cent investment earning rate and a 2.75% deflator to convert the numbers into ‘today’s’ dollar value.

Start Now to Maximise Your Retirement Savings

The key to enhancing your retirement comfort level lies in taking proactive steps towards saving and getting started. For most people, the earlier, the better. The impact of compounding can transform the balance of your retirement fund. Consider the case of a 47-year-old beginning with a $150,000 savings balance, who invests $500 a month. If they get a 7.5% return over 20 years, they can amass around $897,000 by age 67. In comparison, if they delayed starting by 5 years, they would need to nearly triple their monthly contribution to $1,450 to reach the level of retirement savings by that age.

Starting at age 47 Starting at age 52
Initial deposit balance $150,000 $150,000
Regular deposits $120,000 $261,000
Total investment earnings $627,006 $487,291
Total balance $897,006 $898,291

Source: MoneySmart

While the case study above demonstrates the power of getting started, it’s essential to understand that factors like investment returns, taxes, and personal circumstances can also play a significant role.

Retirement Planning Advice

At Evans and Partners, we appreciate the complexities of retirement planning and whether you’re embarking on your retirement journey early or are in the later stages of preparing for retirement, we understand the nuances. Our experienced advisers can guide on how to get started, develop a plan and keep you on track.

Saurav Patel
Investment & Strategy Adviser

Important Disclosures

The information was prepared by Evans and Partners Pty Ltd (ABN 85 125 338 785, AFSL 318075) (“Evans and Partners”). Evans and Partners is a wholly owned subsidiaries of E&P Financial Group Limited (ABN 54 60 9913 457) (E&P Financial Group) and related bodies corporate.

The information may contain general advice or is factual information and was prepared without taking into account your objectives, financial situation or needs. Before acting on any advice, you should consider whether the advice is appropriate to you. Seeking professional personal advice is always highly recommended. Where a particular financial product has been referred to, you should obtain a copy of the relevant product disclosure statement or offer document before making any decision in relation to the financial product. Past performance is not a reliable indicator of future performance.

The Financial Services Guide of Evans and Partners Pty Ltd contains important information about the services we offer, how we and our associates are paid, and any potential conflicts of interest that we may have. A copy of the Financial Services Guide can be found at Please let us know if you would like to receive a hard copy free of charge.