Ah, retirement. The light at the end of the tunnel. The well-deserved gift to yourself after years of hard work and accomplishments.

Retirement is surely something to look forward to, but it takes a little more planning than you might think. Australians are feeling less confident than ever about their financial standings and ability to retire — according to a study by Allianz Retire+, 40% of people getting ready for retirement said they lost money during the pandemic, and one in five have seen (or expect) changes in their employment status.

But these complications caused by COVID-19 shouldn't keep you from enjoying retirement like you should. With the right planning and professional expertise, you can feel comfortable about going into retirement and forget about getting a job on the side.

So how much money do you need to retire, and when's the best time to start saving? Read on to answer these questions and learn about SmartMoney's Retirement Solutions.

How much money do I need to retire?

The amount of money you need to save for retirement depends on your current lifestyle or future plans. As a general rule, our head of wealth management, Peter Kaleski, suggests that most people will need approximately 70% of their pre-retirement take-home income to live a comfortable retirement. Of course, this will vary depending on expected retirement lifestyle.

Are you wondering why your retirement income may need to be so high? Remember that you will have more free time than before. Every day will seem like the weekend and you have more opportunities to spend money. You might travel more, you may treat yourself out to breakfast, lunch or dinner more often as well. You may have grandchildren that you would like to spend money on. These are all scenarios to consider in addition to your everyday bills.

What exactly are you paying for during retirement that determines how much money you need to save? Beyond spending money as you want, some of the other major expenses you might have include:

• Paying off your mortgage
• Paying your rent
• Fixing up your home to sell it
• Traveling
• Saving for potential medical costs

Remember: Additional expenses will vary based on your lifestyle choices, but it's always wise to prepare for unexpected emergencies.

When should I plan to retire?

Is there a certain age you need to retire? Not in the slightest. There is a general age range that most follow, however, so you can choose when it makes sense to retire based on your lifestyle and future goals.

The Australian Bureau of Statistics reported that, in the 2018-2019 fiscal year, there were 3.9 million retirees. Of those individuals, 55% of people over 55 were retired and the average age of retirees was 55.4 years old. Overall, the average age people intended to retire was 65.5 years old.

The right age is different for everyone. You can retire earlier than 55, you can retire into your 70's as well. Understanding your current financial situation can give you a better idea of your age of retirement. Could you retire at any moment based on your current finances, or would a shift in spending habits and savings put you in better shape for retirement? A professional financial planner can help you figure this out.

When should I start saving for retirement?

If there's one thing you can remember about saving for retirement, it's this: There's no fixed age to start saving. However, the earlier you put money away, the sooner you can leave your career and enjoy the simpler things in life. Ideally, he sooner you can start saving, the better. This will give you more cushion and make retirement more relaxed with less focused on a strict budget.

If you're worried that you don't have the funds to start saving for retirement, working with a financial advisor while you're still working can be a smart step to ensuring financial stability and freedom in the long run. Expert advice can help you improve your budgeting habits, get rid of existing debts and put you in a place where saving feels realistic.

How to prepare for a retirement plan

Saving money for retirement is all about planning around your lifestyle. And sometimes, major obligations in life can sneak up on you out of nowhere. At SmartMoney Wealth Management, we understand that it can feel overwhelming and intimidating, and that's why we're here to help.

Feeling confident in your financial future shouldn't be few and far between. Everyone should be able to retire, and everyone can.

Instead of planning your retirement on your own, why not work with a professional with years of financial guidance experience? We can offer a suite of accessible, affordable services that are designed to help you feel more comfortable about handling money from now through retirement. Our financial advisors build strategies and strong relationships with all clients; honesty and integrity are what our mission statement is all about, so we want to make sure you make the right financial decisions for you and your family.

No matter your current age or how much money you have, we can work with you to create a tailored long-term plan that allows you to keep living the life you love well into your retirement years. Contact us today to schedule your free consultation.