saving-for-retirement

How Much Should I Save for Retirement? – Part 1

 

While a lot of us are preparing eagerly for retirement, most of us have been putting it off. It’s becoming pretty obvious to most of the baby boomers that the time has come to face reality. Unfortunately, a lot of us are scratching our heads asking ourselves, “How much should I save for retirement?”

Fortunately, it’s not hard to come up with various formulas for figuring out the answer to that question, so I hope to make it a little easier for you in this 2-part series on retirement.

 

“Research by the Australian Bureau of Statistics reveals that there are almost 3 million Australians aged over 50 in the labour force, representing approximately 28% of Australia’s current work force.”

 

In a recent article on the WealthAdvisor website, http://ww2.wealthadvisor.com.au/, Spring Financial Group Pty Ltd. revealed that over a quarter of all our workers in Australia are in the over-50 age group. This means that pretty soon, the work force will shrink considerably and a lot of people will be wondering if they saved enough.

Based on figures from the Association of Superannuation Funds of Australia (ASFA), the article reported that couples could get by with an annual combined income of $33,509 and have a fairly comfortable, active life for $57,817. For individuals, the ranges are $23,283 on the low end and $42,254 in the more comfortable range.

That might not seem like such a high income, but considering that the goal is to live off the interest from your investments, you’d have to have a pretty hefty portfolio to do the trick. That’s why so many retirees are looking to earn extra revenue online. Strangely, even though a lot of the boomers are not exactly well-prepared for retirement, this may be the best possible time in history to be ill-prepared for what looks like very long retirement – the Internet is changing the world and its possibilities.

Take John Chow, for example. John fits into this age category, but never had a particularly high-paying job. He was born in mainland China and didn’t even have plumbing growing up. His father built their house by hauling big stones and putting them into place until they had walls. It was all done by hand and there wasn’t any such thing as building codes. Fortunately, his family was able to move to Canada when John was still young.

John tried various jobs, but didn’t strike gold until about a year after he started blogging as a hobby. To everyone’s amazement, including his own, the blog he started in order to simply keep in touch with family and friends started making money. John probably makes over $200,000 per month now.

Michelle and Bill Pescosolido found online marketing as a second job – well, maybe I should say 3rd and 4th jobs, as they both already had jobs when they found online marketing. While they were mostly too exhausted to have fun with their teenage girls because of their 9-to-5 work schedules, they decided that investing a little extra time marketing at night would be worth it in the long run, and now live a very comfortable laptop lifestyle – after dumping their 9-to-5 positions. Saving for retirement is not a problem, and neither is finding time for fun with their kids.

In part two of this series, I’ll give you a more definitive answer to, ‘How much should I save for retirement?’ Just keep in mind that even if you don’t have enough, there is still hope, especially in this age of information – if you act fairly quickly and put your mind to it.

For more info about me, you can go here, or simply leave a comment below. I’m glad you stopped by, and I’ll see you in the second half of this series.