Managing expectations

Planning for retirement usually involves attempting to put away sufficient funds to provide retirement income equal to a proportion (perhaps half or two thirds) of ‘normal’ income. This is such a daunting task that it causes people to not even try. Funding retirement, fully, in this way would often mean restricting full meals to the third Wednesday in the month (from a very young age).

The downturn in the economy has lent itself to an alternative strategy. Profits and income from full-time work may have reduced to the point that earnings closely match the potential retirement income. Retirement then becomes an even more attractive and manageable prospect.