AMP Authorised Financial Planners say there is a lot to do before retirement. In this video they outline the steps to secure your financial position .
Planner Andrew Heaven said when you finish your last day of work you have a bucket of “capital” that has to last for the rest of your life.
“The cheat notes on it are, that what ever your living expenses are or that you think they will be into retirement, you divide that by five percent and that’s the pool of capital that you need. If you need 50,000 per year then you need $1million worth of capital to live that lifestyle.”
Sally Wilson said $500 a week will pay for the basics, such as car, mobile phone and food but that amount was going up each year.
“There is an old rule of thumb for every dollar you earn, you should put 10% away for long term savings, 30% for mortgage, 30% for living expenses and 30% for tax, ” she said.
“If most people adopt that thought in their mind it will help. There is always a need to put away money for the future and for emergency money in the bank.”