Spreadsheet to workout how long retirement money will last

[AlexS]

Good article in todays SMH on the effect of fees on your super.

[Arron]

Hi Arron

some other sources of data.
The Reserve Bank has a lot of historical data on their web site Reserve Bank of Australia - Home Page you may find the RBA's inflation adjusted 10 year bond rate a better proxy for the future than the average for inflation over the past 70 years. Also I believe the RBA is about to issue 20 and 30 year bonds which in essence will give another measure of future inflation.

Also, Federal Treasury has projections for economic growth and inflation into the future.

Rather than dying with the last cheque bouncing -- someone has to pay for your funeral -- you could always donate the balance of your estate to a worthwhile cause like a scholarship for a suitably "worthy" student to attend the year long furniture course at the Sturt School in Mittagong or some other cause.

Re the age pension -- an assumption that you won't access it (and the associated fringe benefits) is possibly too conservative


Life expectancy is an average, not an absolute
If you're currently 60, life expectancy might be 23 years, but there's a 25% chance you will live to 90.


Lastly, as I understand it -- the average Australian incurs around 50% of their total life-time health expenditure in their last year of life.

Yes, I am really not sure about how to model life expectancy. I understand that its a normal curve, and that if 83 is your lot by the best guess of the actuaries then you might die at any point along the bell curve. So should you model to 83, and assume that if you get lucky then the Gvt can support you from then on (assuming your wants are pretty modest in your late 80's anyway). Or should you draw the line at 25% chance and model to 90. Or should you accept that there is a 1% chance that you will live to 100 and therefore model to 100.

Re the age pension. Well that's the way I've always seen it but I intend to see a Financial/retirement planner or two in the new year and perhaps they can show me otherwise. I have no issues at all with getting a bit of government support, even if it requires manufacturing circumstances a bit to do so.

all interesting
cheers
Arron

[Chris Parks]

It is a gamble and nothing else describes it. My father was involved in superannuation and he always said tell me when you will die and I will tell you how much money you need.

[ian]

the difficulty with any of this is the extra costs of retirement

after you retire you are at home so home costs go up ie you use more electricity and more water etc
snip
and i won't mention the sudden need for vital necessities such as better tools and more wood etc

[steamingbill]

I agree with Sawdustmaker and Chris.

I reckon everybody should plan on spending a bit more on toys and activities during early retirement and spend relatively less (taking inflation into account) in "their deep old age" - I got that phrase from a financial planner.

Lets face it, you are highly likely to spend more time reading books and watching videos when you are 90 than when you are a sprightly 60yo and still eager to make a mess in the shed.

Bill

[Sawdust Maker]

... I started looking at camera lenses last night, there is another way to spend lots of money on.

I commented last night that I was looking at another lens - "what do you need ANOTHER lens for" on that tone of voice!