1
00:00:00,120 --> 00:00:02,520
Speaker 1: New insight into how much we need to save for retirement.

2
00:00:02,560 --> 00:00:06,080
Speaker 1: Massive university research is suggesting this morning we can get

3
00:00:06,120 --> 00:00:08,080
Speaker 1: by on less than half a million dollars? Can this

4
00:00:08,160 --> 00:00:11,200
Speaker 1: be true? Report author and associate prophysically and Matthews is back. Well,

5
00:00:11,200 --> 00:00:12,559
Speaker 1: it's clear, very good morning to you.

6
00:00:13,480 --> 00:00:14,160
Speaker 2: Good morning, Mike.

7
00:00:14,440 --> 00:00:16,200
Speaker 1: Do we we do this each year? As far as

8
00:00:16,280 --> 00:00:18,080
Speaker 1: I know? Is the number change much over the years?

9
00:00:19,360 --> 00:00:24,040
Speaker 2: Oh? Yeah, it does change as it reflects levels of

10
00:00:24,079 --> 00:00:28,560
Speaker 2: spending and other economic conditions, but now not hugely different.

11
00:00:28,680 --> 00:00:32,120
Speaker 2: And we do consistently show that we don't need to

12
00:00:32,159 --> 00:00:35,159
Speaker 2: save as much as other people would suggest is required.

13
00:00:35,320 --> 00:00:39,240
Speaker 1: Okay, so the criteria you don't you can't have a mortgage, right.

14
00:00:39,360 --> 00:00:41,920
Speaker 2: Well, it's not so much that you can't have a mortgage,

15
00:00:41,960 --> 00:00:46,360
Speaker 2: it's that the current retirees whose expenditure we're reporting on

16
00:00:46,800 --> 00:00:50,559
Speaker 2: don't generally have a home loan and are not generally renting.

17
00:00:50,680 --> 00:00:54,240
Speaker 2: So we're talking to baby boomers who've retired, well, not

18
00:00:54,280 --> 00:00:56,880
Speaker 2: personally talking to them, but that's whose data we're reporting on.

19
00:00:58,240 --> 00:01:01,600
Speaker 2: So in the reality that is that that generation is

20
00:01:01,800 --> 00:01:04,520
Speaker 2: likely to have gone into retirement in their own home

21
00:01:04,640 --> 00:01:07,880
Speaker 2: without a home loan, and therefore that is reflected in

22
00:01:07,920 --> 00:01:12,199
Speaker 2: their spending. Yes, if you go into retirement, we're still

23
00:01:12,280 --> 00:01:16,520
Speaker 2: with a home loan and or in rental accommodation, then

24
00:01:16,600 --> 00:01:18,959
Speaker 2: it is likely to require you have slight anymore.

25
00:01:19,200 --> 00:01:21,640
Speaker 1: Crystal Ball, when I talked to you in twenty years time,

26
00:01:21,720 --> 00:01:23,480
Speaker 1: thirty years time, and know when young today has been

27
00:01:23,520 --> 00:01:24,880
Speaker 1: able to buy a house. Is all this going to

28
00:01:24,959 --> 00:01:25,720
Speaker 1: change dramatically.

29
00:01:27,959 --> 00:01:30,400
Speaker 2: There's potentially going to change, but we'll start to see

30
00:01:30,400 --> 00:01:34,520
Speaker 2: the changes probably in about ten years, by which stage

31
00:01:34,920 --> 00:01:38,760
Speaker 2: will be having when I had about five years worth

32
00:01:38,880 --> 00:01:43,080
Speaker 2: of the next generation Generation X having retired, because we've

33
00:01:43,080 --> 00:01:46,000
Speaker 2: still got baby boomers retiring for another five years and

34
00:01:46,040 --> 00:01:50,559
Speaker 2: even some of the early generation XES. So it's still

35
00:01:50,640 --> 00:01:53,120
Speaker 2: quite possible. And that's why you start early, because if

36
00:01:53,120 --> 00:01:55,560
Speaker 2: you start early, then the amount that you need to

37
00:01:55,600 --> 00:01:58,840
Speaker 2: save isn't it as daunting because you're saving for a

38
00:01:58,920 --> 00:01:59,960
Speaker 2: much longer time frame.

39
00:02:00,160 --> 00:02:02,280
Speaker 1: Big still a big gap between the city and the

40
00:02:02,360 --> 00:02:04,920
Speaker 1: rural part. Has that gap changed much over the.

41
00:02:05,000 --> 00:02:09,480
Speaker 2: Years, No, it hasn't changed that much. And it just

42
00:02:09,520 --> 00:02:11,800
Speaker 2: reflects that there are different costs of living depending on

43
00:02:11,840 --> 00:02:16,280
Speaker 2: where you live. And it also reflects that potentially people

44
00:02:16,320 --> 00:02:19,079
Speaker 2: live in those different locations because of the different lifestyles that.

45
00:02:19,040 --> 00:02:21,880
Speaker 1: They want, and to be fair, it's still a very

46
00:02:21,919 --> 00:02:24,200
Speaker 1: individual thing, isn't it. I mean, it depends on what

47
00:02:24,360 --> 00:02:27,160
Speaker 1: sort of life you want. Half a million can be plenty,

48
00:02:27,440 --> 00:02:30,080
Speaker 1: half a million can barely scrape the sides.

49
00:02:31,280 --> 00:02:33,320
Speaker 2: Absolutely. And this is not saying this is what you

50
00:02:33,360 --> 00:02:36,920
Speaker 2: should definitely aim for. What it's saying is that this

51
00:02:37,000 --> 00:02:40,639
Speaker 2: is what retirees are doing, and that you know they

52
00:02:40,680 --> 00:02:43,360
Speaker 2: are living quite comfortably and these are the amounts that

53
00:02:43,400 --> 00:02:46,880
Speaker 2: they are using to do that. But it's your users

54
00:02:46,919 --> 00:02:50,399
Speaker 2: to provide information and talk to a financial advisor about

55
00:02:50,440 --> 00:02:53,160
Speaker 2: what you specifically are looking to do in your retirement

56
00:02:53,400 --> 00:02:56,120
Speaker 2: and therefore how much you need to achieve that nice stuff.

57
00:02:56,160 --> 00:02:58,320
Speaker 1: Clar Good to talk to you again, Claire Matthews out

58
00:02:58,360 --> 00:03:01,519
Speaker 1: of Massi University this morning. For more from the Mic

59
00:03:01,600 --> 00:03:05,000
Speaker 1: Asking Breakfast, listen live to News Talk SETB from six

60
00:03:05,040 --> 00:03:08,200
Speaker 1: am weekdays, or follow the podcast on iHeartRadio