I had an interesting conversation with a colleague of mine the other day. He had recently given a presentation to a room full of accountants and had asked them what their expectations were regarding retirement income. Their response shocked him!
It turned out that the majority of them had an expectation of budgeting on around $500 a week in ‘after tax’ income to live on in retirement.
Considering this will be a time in their life when they will have more free time to do whatever they like since they left school, it sounds like they are expecting a pretty dull existence in retirement. Maybe they are looking forward to catching up on all the back episodes of Gilligan’s Island and Bewitched!
Just so you know, $500 after tax would equate to something like $32k per annum taxable income, a figure that is substantially less than an accountant would be earning prior to retirement!
You can see why he was shocked.
I recently wrote about the Power of Passion and I would say it is clear that there is some passion missing in the lives of these accountants. It seems as if they have given up on themselves if $500 a week is all they are expectating!
You may remember I have also previously written about expectations. You get what you expect to get, so if you want more you must raise your expectations. Clearly, to do this you need to have a boost in your level of passion i.e. get excited about what you are doing or go do something else!
So what I can’t stop thinking is this; we would all expect a room full of accountants to have the financial answers. Clearly that is not necessarily so; something is missing!
This will be the topic of my next blog!
That’s all for now.
Founder Simply Budget