Even if you’re only twenty, maybe thirty or forty, we all think about it from time to time: How much money would I need to be able to retire? Retirement specialist Audley Villages has conducted a study of how much money you would need to “retire happily”.
Of course it depends on where in the world you live. In one country you need much less money to live on than elsewhere. It also depends on life expectancy. The research was mainly aimed at achieving happiness. The ‘happiness index’ of a pensioner was examined, as were the place of residence, average life expectancy, the annual salary and the cost of living per month.
How much to save for your pension?
The research takes Amsterdam as the benchmark of the Netherlands. With an average life expectancy of 82.1 years and monthly costs averaging around 1200 euros, you should save 244,000 euros. The study is based on an average gross annual salary of 34,500 euros per year in the Netherlands. You must of course have this amount at your retirement age. That is currently 66 years and 4 months. If you have this amount at the age of 40, you will be far from retiring.
This puts the Netherlands in the middle of the league in terms of the amount to be saved for your pension. In the top twenty happiest cities in the world, you will have to save the most if you live in Switzerland: 356,000 euros. Lucky for the Swiss is that they also earn almost twice as much as the Dutch.
Well, well, Wellington
In the Czech Republic you need to have the least savings at your retirement age: 129,830 euros. There, however, they earn a lot less on an annual basis. All in all, you will find it best in Wellington, New Zealand. It is best to save 173,000 euros there, and that on an annual salary of 33,000 euros.
Amsterdam may be high on the list of happiest cities in the world, it only ranks 23rd when it comes to the best city to retire. The best way to reach retirement age is in Melbourne. The Australians will have to save 210,000 euros if they want to get the most out of their retirement. Relatively cheap considering annual salary and life expectancy, plus Melbourne is a happy city too.
With a total score of 6.6, it is best to spend your old age under the Australian sun. Rio de Janeiro is doing equally well. It’s cheap, but also a lot less for your mood. Helsinki is in third place with a score of 6.5. Amsterdam does justice to the Dutch six-piece mentality. By the way, you are wrong in Asia. Hong Kong, Tokyo, Singapore, Seoul and Delhi are the worst retirement cities in the world.
Enjoy your retirement
When you can finally retire with your two and a half tons of savings, make the most of it. Plan ahead: what do you want to do with your time and money? Don’t rush anything. And especially think of your mental happiness. Make sure you have social contact, keep having goals and stay healthy and active. Above all, enjoy your free time and do things that you enjoy. Otherwise your money, which is intended for a happy retirement, is of no use.
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