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Choosing a lifestyle for your retirement is a personal choice, if one wants a lavish lifestyle during the retirement then he/she needs to save/earn more or inherit money. Even for a comfortable lifestyle one has to start thinking now to deliver such lifestyle. The safe bet of an average corpus required to achieve a comfortable retirement is around $1 million to start with and get around 6-8% return on the same to sustain the living throughout the retirement period.
If you have that amount you can have enough options as to when youâre going to retire or semi retire depending upon how much, risk you will take in your retirement years and what youâll draw out of your savings. It also depends on the pension situations at that time when we head towards the 2040s.
During a retirement lumpsum of $1 million can generate about $1,500 a week while not forgetting that this income will be tax free under the current rules. And also, considering the that the life expectancy of 85 years from the retirement age of 65 year i.e. this income should suffice for 20 years.Â
| Age | Â Â Â Â Amount to be earned | Â Â Return | Corpus at age 65 |
| 25 | $50,503.00 | 7% | ~ $1 Million |
| 30 | $73,601.00 | 7% | ~ $1 Million |
| 35 | $108,658.00 | 7% | ~ $1 Million |
| 40 | $163,640.00 | 7% | ~ $1 Million |
| 45 | $254,469.00 | 7% | ~ $1 Million |
| 50 | $418,220.00 | 7% | ~ $1 Million |
| 55 | $765,868.00 | 7% | ~ $1 Million |
Table: How much you need to earn to retire with $1 million
So, the sooner you start the better it is, as these funds can be impacted by the rate of return you get the fees charged and inflation. The effect of inflation in a high inflation period can be devastating which is fortunately low in the current period.
One way is to earn through a superannuation fund but pension at that time is expected to earn only 3% and for those starting to save later it can become a huge concern to reach the desired level of corpus. This means Australians have to do more than just relying on compulsory employer contributions of 9.25% or investments beyond the superannuation funds should be used.
For this there are few dividend stocks, as only some companies pay dividends while others decide to reinvest the money. As at October 2018, some of the high paying dividends stocks which can help you achieve the same amount of return i.e. 6-8% on the savings and get you closer to the $1 million retirement fund are as follows:
| Name | Â ASX Code | PE | Div. Yield (%) |
| National Australia Bank Ltd | NAB.AX | 13.220 | 7.69 |
| AMP Ltd | AMP.AX | 17.610 | 7.73 |
| Cromwell Property Group | CMW.AX | 9.420 | 7.86 |
| Sigma Healthcare Ltd | SIG.AX | 13.690 | 6.96 |
| IOOF Holdings Ltd | IFL.AX | 30.040 | 6.81 |
| Westpac Banking Corp | WBC.AX | 10.900 | 7.04 |
| Bank of Queensland Ltd | BOQ.AX | 12.350 | 7.2 |
| Perpetual Ltd | PPT.AX | 11.740 | 7.68 |
| Bendigo and Adelaide Bank Ltd | BEN.AX | 11.420 | 6.82 |
Dividends are a steady income supply from a long-term profitable company but finding your retirement number only starts with a retirement budget. Planning for unexpected expenses and the money you owe as debt is also equally important. As the money you will receive also depends on the assets you own and the funds you have for retirement or any other form of income.
The Income available from dividends remains attractive for many investors.
We take a look at the best yields on the market and assess what they say about a companyâs prospect.
One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkineâs team of analysts bought you handpicked report for âTop 25 Dividend Stocks For 2018.â
ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.
Click here to get your free report.
Disclaimer
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.
