Want to know, young people, how much money you have to save to retire in Australia?

The ultimate vision of the contemporary young person in Australia

"Feeling like you're always frustrated with your work and your life is so monotonous that it's almost like a two-way street?

That the high level of motivation you had when you first joined the workforce has long since turned into physical and mental exhaustion, and that you can't seem to get excited about anything?

Sometimes you even feel that you are less important than the cat you have at home? ...

--You've become a social animal."

The term "social animal" originally originated in the Japanese workplace culture in the 1990s and has been resonating and self-deprecating in other societies in China, Australia, and other countries in the last two years.

It has been said that "the five expectations that support the social animal's life moving forward: waiting for work, waiting for Friday, waiting for payday, waiting for delivery - and waiting for retirement."

In fact, "saving enough money to retire" has become the ultimate aspiration for many young social animals today.

In A Brief History of Mankind, it is mentioned that many young people today work hard to earn money to retire at 35 and pursue a career they are truly passionate about, only to find themselves at 35 with a huge mortgage, children's school fees and a life without fine wine and overseas holidays.

So how much money does it take to live a comfortable retirement in Australia?

01.

"The 'low' and 'high' versions of Australian retirement

The Australian Superannuation Association (ASFA) estimates that for Australians aged around 65, with a home of their own and in relatively good health, the amount of money required for a simple and comfortable retirement is as follows.

where the 'simple living standard' is higher than the 'basic living standard' for receiving Australian Government retirement benefits.

"The Comfortable Living Standard means that people can afford to retire with not only a good standard of living, but also to engage in a wide range of leisure and recreational activities, and to maintain a certain level of domestic and international travel.

The specific retirement criteria provided by ASFA are as follows.

But at the end of the day, "how much money do you need to retire" is a very personal question, depending on each person's circumstances, needs, and expectations of their retirement lifestyle. Some people may be able to live comfortably on a million dollars for the rest of their lives, while others may not last more than a few years on $10 million.

It depends on what you do and what you expect your retirement to be like, but research shows that Australians need $2-4 million to retire," says Vanessa, a leading Australian financial media personality. So keep that in mind and work towards it given your current personal circumstances."

So if you want to achieve this financial goal as soon as possible before you retire, what should you do and not do at each stage of your life?

02.

Age 20: Save as much as you can

"The key point in your twenties is to save as much as you can usually save."

During this period, you should save at least 20 percent of your income, says financial planner Alicia Butera (Patra).

"This is when you have the least amount of expenses, especially when you get into your 20s and you're just starting to really earn money and still living the college life." She adds, "That's a good amount of discretionary income."

According to Patra's advice, young people in their early 20s can have 20 percent (or whatever percentage they can afford) automatically deducted from their salary - that way, you won't notice the money has disappeared and you'll still be unwittingly developing the habit of living frugally.

Being good at saving money early on is often the cornerstone of building wealth.

William Danko (Danko), the author of the best-selling book The Millionaire Next Door, also mentioned in an interview that "one of the three key ways to become a millionaire is to save 20 ppercentof your income."

Danko says you can't build a "significant net worth" if you spend everything you earn.

"Saving at a young age is crucial, especially for compound interest - the longer you have it, the more you gain."

"If you invest the money you've saved in a pension account or elsewhere, then you benefit through compound interest. In this case, the interest you earn on that money will earn more interest over time."

03.

Age 30: Don't be left with anything after buying a house and having children

For many people, it is often in their thirties that they start earning more money, get married for the first time, and have a double income; but at the same time, people also tend to choose to buy a house or have children during this period.

--so this is also the decade when the cost of living becomes more expensive.

Batra says, "In your 30s, people are tempted to spend the most money."

The key to this period, she says, is to "resist the temptation to live a lifestyle you can't afford" to prevent yourself from making major financial mistakes in the next decade.

Sarah Stanley Fallaw, head of research from the Affluent Market Institute, said that most of the 600 millionaires she studied lived below their means until they had accumulated a seven-figure fortune.

To use an analogy, if you're buying a house, then you have to make wise loan choices and not "buy the house and then become destitute."

According to her research, the vast majority of these wealthy people follow one rule.

Never buy a house that costs more than three times its annual income.

In addition to a house, of course, children are another major decision and expense for people of this age.

In fact, before thinking about having children, you might want to think about how much of an impact this decision could have on your future income if you hit the career pause button.

According to a study by Fortune magazine in 2016.

If an average American woman takes a five-year career break, she will sacrifice $467,000 (AUD 650,000) in income, salary growth, retirement assets, and benefits over her lifetime; for men, the figure is even higher at $596,000.

On top of that, you have to consider the possibility and financial reality of being a single parent raising children in the event of a future marriage or relationship breakdown.

You need to be vigilant, keep your skills up to date, save for the future, and be involved in decisions about your family budget and investments," says Adam, a financial planner. -- and you need to have a backup plan in your head should something go wrong with the marriage."

04.

Age 40: Make money, make money, make money

The next thing you know, your forties are actually when you start to focus on making money.

You may want to consider outsourcing anything that gets in the way of making money, from hiring someone to manage your finances and taxes to tending to your backyard lawn or even going to the supermarket for household items.

Says Batra, "During this mid-career period, you may reach the peak of your income, so you start letting people do things for you so you can focus on your career and continue to expand your income and benefits."

"This period is also probably when you are most capable of making money", says Adam, "Your career and personal life could be derailed by the time you are in your 50s, so you have to plan. You have to know how to invest and focus on that long-term plan."

05.

Turning 50: Don't let your kids hold you back

Finally, you've made it to this stage when you're closest to retirement.

But even now, when you're so close to the finish line, you can't afford to be careless: don't let your growing children get in the way of your retirement plans.

This stage is an important time to teach your children, nieces, and nephews how to make financial decisions and involve them in some of the financial decisions you are making, says Patra.

She says, "I often see children or family members who are not financially independent and these are the people your money ends up going to - it can be disheartening."

In fact, according to the Australian Institute of Family Studies, 43 percent of 20-24-year-olds were still living in their parent's homes in 2016, compared to 17 percent of 25 to 29-year-olds.

According to a report released by Merrill Lynch in 2018, 79 percent of the 2,500 parents surveyed said they would still provide financial support for their children when they reach adulthood, while 72 percent said they put their children's interests ahead of their own retirement savings needs.

This also means that for the majority of parents, as long as their children are nibbling on them, they will not be able to retire with peace of mind.

In the Stone Age, the average human life expectancy was 15 to 20 years, and one could die just a few years after being able to "work" and be productive, without having to think about anything like "retirement".

Thanks to the development of modern medical science and civilization, it has now become commonplace for humans to live to the age of 70 or even 100.