You may be about to retire or have just retired and whilst you cherish the moment, you suddenly feel anxious about receiving your last pay-cheque and about your ability to earn an income in the future.

A question you may be asking is  ‘how much income do I need for retirement‘?

The question you should be asking is ‘how much income do I need for each phase of my retirement and my retirement priorities‘?

Understanding your retirement income requirements for each of your retirement priorities is important for the following reasons:

Retirement Segregation

The first step is to segregate your retirement priorities ranging from what are retirement essentials to your retirement wish list.

By understanding what items are more important than others, enabling you to choose different ways to fund each component. This process helps you to allay your fears about having enough money and allows you to adjust to what you are able to fund.

Retirement Goals

Rather than having one amount that you need for retirement, you will be able to establish different retirement goals for each retirement priority and allocate the risk you are prepared to take for each of them. This will assist you in reviewing your progress and make adjustments to the funding required where necessary.


The process of identifying the separate retirement income required for each retirement priority will help you avoid making rash investments. You will have a better understanding of the return required for each retirement income goal and framework to help you manage retirement risks, such as sequencing and longevity risks.

Decision Making

You will have a framework upon which to make decisions about what you will do with the money you have and communicate your intentions to whoever is impacted by your retirement plan

Plan for the unexpected

Your retirement planning process will assist in identifying what could happen and how much income is required to meet this retirement goal for the expected and the unexpected!

Retirement Journey

Breaking down your retirement income needs to different categories and levels of importance, will help you to focus on the present and enjoy each phase of retirement- rather than solely on return on investment. Not knowing how much retirement income you require, can lead to unnecessary frugality.

Retirement Phases

To achieve each retirement income goal, you will be able to see if you or your partner need to phase into retirement or consider working longer or pursuing different employment opportunities.


When you are approaching the retirement age,  consider the different phases of your retirement, and ask yourself how much income you need for each retirement priority. 

Understanding your retirement income requirements for each of your different retirement priorities will help you calculate how much income you need to live a long and happy retirement.

For further tips on how to prepare for retirement,  download the attached ebook “How to live an Inspired Retirement” or listen to the “Real Life Financial Planner”, Geoff Ivanac on our retirement podcast, “Real Life Retirement Radio”.

General Advice Warning: Any advice on this site is general advice only and does not take into account the objectives, financial situation or needs of any particular person. It does not represent legal, tax, or personal advice and should not be relied on as such. You should obtain financial advice relevant to your circumstances before making any decisions.