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4 Simple Steps to Budgeting for Retirement

When you picture yourself in retirement, you might imagine enjoying free time, sipping piña coladas and just living a stress-free life.

While plenty of retirees get to enjoy that dream, there’s a lot of preparation that has to come beforehand. Finances can get in the way of all the fun – or more accurately, a lack of finances can get in the way of fun – so it’s important to plan ahead.

Where do you start with budgeting for your retirement, though? 


What do you have to consider in your overall game plan when you hit the golden age of retirement? What steps will be important to ensure that your retirement years are accounted and planned out for?

Here’s an easy-to-follow guide covering five basic steps that’ll make retirement planning and budgeting simple:

1) Define Your Retirement Expectations 

It’s important to lay out what the expectations of your retirement will be. How much cash you’re going to need throughout your retirement period will depend on your desired standard of living and duties that you would fulfil at that time.

Some would like to go travelling when they retire, while some prefer just to live comfortably without the need of earning an income. There may also be certain responsibilities you have to attend to during your retirement, such as any debts or aged care expenses. Either way, you should consider making a list of your wants and needs after retiring.

2) Map Out Your Expenses For Your Ideal Retirement Lifestyle

Now that you have defined your expectations, you can more accurately map out your retirement budget and expenses.

The Association of Superannuation Funds of Australia (ASFA) estimates the real dollar number amount you may need for a comfortable post-retirement lifestyle:

  • $44,818 a year for a single person
  • $63,352 a year for couples

Obviously, this is only an estimate and your real number will be determined by your personal circumstances.

3) Check Your Current Superannuation Balance 

If you’ve already mapped out some of the costs that you may face in retirement, it might be time to assess how much retirement income you’re expected to receive.

You can do this by checking your current super fund balance and assessing how your super is currently being invested. This can provide you with a projection of what the balance will be when you retire.

You can ask a financial planner about how you can save more effectively for your retirement in the future and have peace-of-mind knowing you will have enough funds to support your dream retirement!

4) Seek Professional Advice From a Financial Advisor

In order to budget for your retirement effectively, you should consider getting some advice to steer you in the right direction. Financial planners can help assess your wants and needs for retirement, as well as advise you of any opportunities you may have missed. They can also provide insight and assistance with the following steps in this guide too.

For instance, most Australians may forget that they will likely have to pay for aged care costs later on in life. You may have a longer life expectancy than you presumed, which would have to be accounted for within your retirement budget. A financial planner can support you with all the common things that most retirees miss.

Retirement Planning in Melbourne

Following these steps should bring you closer to being retirement-ready. Budgeting is only one aspect of the preparation stage. Remember to prepare a full-on retirement plan before getting to your mid-50s to avoid financial stress.

Looking for retirement advice? EJM Financial Services provides simple, tailored financial solutions to help people in Melbourne achieve their financial goals and retirement dream.

Your first appointment is complimentary so you can take the first step to financial freedom today. Contact us today!



EJM Financial Services Pty Ltd (ABN 63 006 492 182), is an Authorised Representative and credit representative of AMP Financial Planning Pty Limited, Australian Financial Services Licensee 232706 and Australian Credit Licence 32706. AMPFP Privacy Policy. Please read our Terms and conditions.

General Advice Warning: This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.


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