It’s the question a lot of people are asking, and there many different answers out there.
You may have come across a few industry figures, or seen articles confidently espousing some magic number.

But in reality, there is no perfect amount. These cookie cutter figures simply don’t reflect individual
circumstances. The real answer will depend on your specific needs.

So, how do you find out what this is? That’s where we come in.

Why there’s no magic number

A tailored suit will always fit better than something generic and off the rack. It’s the same with your retirement savings.

Everyone’s post-working life looks a little different, from travel plans and healthcare needs, to hobbies and family structures. So, the ideal amount to save will be different too.

At Wealth Fundamentals, we take a holistic approach. We focus on what you want your retirement lifestyle to be, then model backwards to find your required capital base.

Lifestyle first, finances second 

Knowing the details of your current spending provides a great starting point and helps us make the most of our time together. Before our first meeting, you can use the MoneySmart Budget Calculator to put together a budget.

Once we have that, we can get into the details of your ideal lifestyle and determine what’s required to make it happen.

Your retirement vision

So, what does retirement look like to you? Are you planning to downsize? How regularly will you travel? Will you be supporting your children? Do you have plans to work in any capacity?

These are some of the questions we will ask you to help translate your goals into realistic and sustainable
income requirements. This flips the traditional approach of starting with a dollar target and working out what lifestyle that affords. It means you get to adapt your finances to suit you, and truly enjoy your retirement with greater peace of mind.

Your personalised retirement budget

Using your current spending as our starting point, we’ll identify what changes in retirement.

We remove costs that will (hopefully) disappear, like mortgage payments, work-related expenses, insurance premiums, union fees, and costs associated with children who’ve moved out.

We’ll then add in your retirement-specific expenses, based on your retirement vision. This includes your extra travel budgets, any potential healthcare costs, home modifications, and other lifestyle changes/upgrades you’re planning.

We’ll also make a clear distinction between essential spending and discretionary goals to help make sure your retirement budget is as realistic possible.

Your full picture

With your lifestyle goals defined and your essential spending mapped out, we then factor in your broader
financial circumstances and goals.

For example, we’ll assess:

• Age Pension eligibility and timing
• Potential aged care needs that may arise later in retirement
• Estate intentions—what you wish to leave for loved ones
• Your current asset position, including superannuation and other investments
• Your comfort with investment risk and expected portfolio returns
• Tax-effective withdrawal strategies

Modelling for confidence

With your vision clear and your retirement budget built, we use modelling software to bring it all together

How our modelling process works

We take your current asset pool and factor in your desired investment risk profile. From there, we model what impact your spending goals will have on your savings throughout retirement.

The software shows how your wealth will track over time and whether your assets can sustain your desired lifestyle.

It also accounts for real-world variables, including inflation’s impact on purchasing power, different life
expectancy scenarios, and how market volatility might alter things.

When your plan is on track

In an ideal world, the results will tell you that your current assets and savings are more than enough to allow you to retire at your desired age.

When that happens, we can explore the possibility of retiring a year or two earlier than planned. Or you could increase your retirement spending to add more travel, upgrade your lifestyle, and provide greater support to your family.

When there’s a gap to address

Other times, the modelling shows your assets may not last as long as you need them to.

This is when we facilitate an honest, practical conversation about your options. There are several paths forward, and we’ll help you weigh them up:

• Working a few years longer to build additional savings
• Taking measured additional investment risk where appropriate to your situation
• Adjusting your retirement budget in strategic areas
• Increasing your savings rate in your remaining working years
• Modifying or postponing specific spending goals

Every situation is different, and there’s no one-size-fits-all solution. Whatever the situation, we’ll be here to help you understand the trade-offs and make informed choices that feel right for you.

Ongoing reviews

Life is always unpredictable, and circumstances can change. That’s why our partnership doesn’t end once your plan is in place.

Real-world investment returns are impossible to predict with certainty. For example, a market downturn in your first year of retirement could mean your savings no longer account for every detail of your ideal retirement lifestyle. Or, a market upturn means you suddenly have some extra room in the budget.

Other circumstances can change too, like the loss of an asset, an unexpected health issue, or even a change in your goals. In this situation, we are always ready to help adjust your plan so you can stay on track, even when the unexpected happens.

Let’s build a retirement budget that suits your lifestyle

Wealth Fundamentals is ready to build your personal retirement budget so you can have the life you want. We’ll give you the clarity you need to understand what’s possible so you can make informed decisions armed with a plan built around your priorities.

Let’s get started. Complete your budget with the MoneySmart Budget Calculator, and get in touch with us to talk about what’s possible for you.

Lane Moses Pty Ltd ABN 56 092 186 117 trading as Wealth Fundamentals and its advisers are
Authorised Representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306.

The information (including taxation) contained within this document does not consider your personal
circumstances and is of a general nature only – unless otherwise stated. Wealth Fundamentals
strongly suggests that you should not act on it without first obtaining professional advice specific to
your circumstances. This information is based on our understanding of legislation at the time of
writing. Such legislation may be subject to change. This publication cannot be reproduced in any form
without the express written consent of the author.