Headline figures for retirement savings can be unhelpful, because everyone's spending and circumstances differ. A better approach is to build your own estimate.
Estimate your expenses
Begin with what you spend today and consider which items might fall and which might rise. Healthcare costs, for example, often grow with age.
Account for inflation
Prices tend to rise over time, so the amount you need in the future is larger than the same lifestyle costs today. Even modest inflation compounds across decades.
Think about duration
People are living longer, and a retirement may last several decades. Planning only for an average lifespan leaves little margin.
Consider withdrawal approaches
A Systematic Withdrawal Plan draws regular amounts from an investment, but the amount you can sustain depends on markets, costs and the rate you choose. There is no withdrawal rate that guarantees income for life.
Review regularly
Retirement plans should be revisited as markets, health and expenses change.
This article is general education and is not personalised financial advice. Projections rely on assumptions and are not guaranteed.
Important information
This article is for general education only. It does not consider your personal objectives, financial situation or needs, and is not investment, tax or legal advice. Investments are subject to market risks. Read our risk disclosures.