Your retirement needs

If you are typical of most pensioners, your retirement needs (including those of your immediate family and dependants) can be split as:

• Your basic needs; and
• Your luxury needs.

Basic needs

This is the minimum income that you and your dependants would require in your retirement to retain your basic quality of life.

Your basic needs typically include the money you need for:

• Accommodation, e.g. existing bond repayments and / or rental payments;
• Food for you and your family;
• Clothes;
• Medical expenses; and
• Transport.

Luxury needs

This refers to additional needs (above the basic needs) that would have to be met in order to provide you with a good standard of living, similar to the standard of living that you were enjoying before retirement. You should decide for yourself what level of income you need to cover your basic needs, and then what additional income would be necessary to provide for a comfortable standard of living above the basic level.