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October 27 2022
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Planning your retirement budget

When you retire, you want your super to last as long as you do. One option which may help you prepare for your retirement is thinking about a retirement budget. It can help you see how much you're spending and make the best use of your income.
Retirement budget Retirement budget

Top tips for preparing your retirement budget*

 

1. Assess your priorities.

Begin by assessing your priorities. Think about the costs of the travelling you’d like to do, or the hobbies you’d like to spend more time on.

2. Take a closer look at your income and spending.

List out your basic living expenses and any financial commitments you have, like your mortgage or loans. Your bank statements, bills, credit card statements and receipts will help you see what income you have coming in and going out.

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Tip: Rest's retirement budget calculator can help you review what you spend now and understand how you can be ready for retirement.

3. Look at cutting costs.

Consider anything you could potentially live without if you’re looking to save some money.
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Tip: Try Rest's savings calculator to see how small lifestyle changes could have a big impact down the line.

4. Work with your partner.

If you have a partner, make sure you’re both across the budget to reduce the reliance on just one person for financial decisions and the handling of household finances.

For help figuring out what you’ll need and when, you can always talk to a Rest Adviser for expert advice.

Keeping an eye on expenses

Once you have your budget in place it’s important to monitor your spending and refine things as necessary. One way to see if your budget accurately reflects your expenses is to keep your receipts (paper or electronic) for a period of time – say, one to three months – and then assess them against your budget. You may find some costs, like healthcare, may be greater than you thought as these can increase over time.

It’s important to remember that your spending habits may also change leading up to (and during) retirement.

A realistic budget can help you forecast spending and may help you think about unexpected expenses. It may be a useful tool to help with your longer-term financial planning and making the best use of your retirement income.

*This information has been prepared for general informational purposes and should not be relied on for tax, accounting or other professional advice. Before making any decision or acting on the information, you should seek appropriate tax, accounting or other professional advice relevant to your circumstances.

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