Grayling

There are lots of threads about wages but not all of us are planning to work.

How much would you consider a reasonable pension to live on in in Australia?

For 2 people, no mortgage etc.

I know there are a few doing this but finances are rarely mentioned. I would be interested in all views as it will affect everyone one day.....sooner than you think

G

Tiggs+Graz

sorry don't have a specific answer for this but i will be interested to read the replies as i have been doing some research on pensions for my parents.

i think the thing about any wage or pension is that it depends upon your personal circumstances and what you have been used to living on before. It never ceases to amaze me that people post on the boards saying that they can't manage on their oz wages and they are on considerably more than i would ever expect my wages to be!!

Tiggs

Grayling

I agree with this.

I have a figure in mind (ie. what I have got), however I would be interested in other people's views.

G

pinkme

Hi,
We applyed for CPV in Feb 2006 having long wait around. We retire Jan 2007, have sold our house & move out in Oct 2006, close pension as not to pay tax on it when we get to OZ.
We think you don't as much to live on in OZ, there will only State Penison to live!!!!!
Regards Pauline.

Amazulu

I've been looking in to this recently & been talking to a financial adviser about this & other investments as I am planning to retire early (very early). He reckons $1million+ with no mortgage is about right for a couple with no other debts. So about GBP400k+ in your money.

steandleigh

Hi G,

I'd reitterate the previous post.

From the advice we have taken so far, $1million plus seems to be the way to go after you have taken care of the following....(that is, main home mortgage free, the car you want paid up- within your retirement year; so newish to you, any extras i.e boat, holiday home ((again, mortgage free, of course)) and of course kids long gone and settled, weddings paid for etc ).

Excess to that could be easily thought of and achievable - lets face it, $1million AUS is only: 435,000 pounds sterling.

AUS pension / Uk pension not being a fortune and who wants to live on 64 quid a week...?

Not much help to you G, but to those our age and 'thinking; about retirement, the word must be: bang away as much as you can to be able to keep "living the dream"...wherever you are....

Grayling

Thanks

Interesting answers so far.

I am already drawing an occupational pension and my wife will be soon.

It is probably a little bit more than the pension of $ 1 million already stated and is independent of any investment I may also have. It is also index linked

The reason I asked is because I really don't have a clue what a decent retirement income would be.

I really do not want to move to Australia and be worse off.

I would be able to work if necessary (am in my mid 50's) and am a registered nurse, but it is not part of my immediate plans

I am really looking for what most would consider a reasonable annual income, bearing in mind that what we have now is what we will always have.

G

Amazulu

Also a point to remember is that tax rules for pensions are changing ie getting better. A very simple calculation:
say 6% income from $1m is $60k (a fairly average return really). If you were getting some tax breaks on that & had no mortgage or other debts then it's a reasonable sum to live on.

Grayling

That sounds pretty Ok to me.

I have not really explored the tax implications yet and most of my income will be in sterling and may be counted differently.

My investments will be in Australia and, again, I need to check out the tax implications....another job on the list (to consult a tax/financial advisor).

My aim is to move over in the near future and not have to plan to work...it would make life a lot less complicated.

G

Tiggs+Graz

a few months ago i read an article that suggested that to maintain your current lifestyle you would need somewhere about two thirds of your yearly 'working' income.

This assumed that you no longer had a mortgage and had already made most of your 'big' purchases (for example a boat or caravan etc)

Unfortuntely i can't now find the link - although i will keep looking and post if i find it.

Tiggs

The Norwegian

It should not be that hard to figure out. Find out how much the average cost of living per month is for you. Also include any vacations, trip back to England etc. Finally add some money that should be put aside for a rainy day.

I figure a gross income of $60,000 should be ok (30,000 each). Will give you approximately $4,100 $4,200 each month. In the end it all depends what kind of lifestyle you want.

Erik the Viking

Siren & Brian

I would say that most Australian pensioners would be getting a third of this.

$500 a week would make most people pretty comfortable. Dunno if you would be entitled to some of the pensioner benefits like discounts on rates, bills, perscriptions etc.

Grayling

I was not aware of that.

I accept that it is down to individual lifestyle but, as I am still in the UK, I have no idea what my monthly outgoings are likely to be.

It also makes a difference as, if I thought we would not have enough to live on, I would look for a place where it would be easy to work rather than simply to retire.

I am sure everyone has to face this at some point so this has a relevance beyond my personal circumstances.

Thanks for the comments so far.

G

DerekM

Most interesting thread this. What would be the tax liability on $60k assuming 50:50 for a couple and would this amount be ok for the Sydney area? My impression is that Sydney is the most expensive place to live?
Having looked at houses in a few areas of NSW mainly Northern Sydney I became a bit despondent about it all as we dont particularly want an apartment. And those we looked at were rather small, we are not quite ready for that yet!

steve99

Very interesting thread, the sort of figure mentioned here sounds familiar with something I read a few months back.
How early are you thinking of retiring Amazulu?