Here’s how much you need to save for a happy retirement

It doesn’t matter if you’re young or old, you’re probably thinking about what you need to live a comfortable life in your old age. Pension Specialist Audley Villages do a study how much money you would need for ‘happy retirement’.

This of course depends on the country in which you live and the country in which you are entitled to a pension. In one country, it takes much less money to live than elsewhere. It also depends on life expectancy. Research is primarily focused on achieving happiness. A retiree’s “happiness index” was examined. The place of residence, the average life expectancy, the annual salary and the cost of living per month are important indicators.

How much are you saving for your retirement?

The study takes Amsterdam as a benchmark for the Netherlands. With an average life expectancy of 82.1 years and monthly costs averaging €1,200, you should save €244,000, according to the study. This is based on an average gross annual salary of EUR 34,500 per year (based on 2020). You must therefore have the amount saved before you retire. At the moment it is 66 years and 4 months, although this may still differ slightly from sector to sector. Just to be clear: if you have that amount at age 40, you won’t be able to retire for a long time.

The Netherlands is in the middle when it comes to how much you need to save for your pension. In the top 20 happiest cities in the world, you will have to save the most if you live in Switzerland: 356,000 euros. You earn about twice as much there as in the Netherlands.

Depart for New Zealand or Australia

In the Czech Republic, it is at retirement age that you need the least savings to live “happily”: 129,830 euros. They earn a lot less on an annual basis there. Overall you are better off in Wellington, New Zealand. According to research, 173,000 euros is enough for a happy retirement. And that on an annual salary of 33,000 euros.

Amsterdam may be high on the list of the happiest and most livable cities in the world, but the Dutch capital is only 23rd when you look at the best cities to live in during your retirement. The best city for retirees is Melbourne. Australians need to save up to 210,000 euros for a happy retirement. This while the annual salary and life expectancy are relatively high. Additionally, Melbourne has been in the top 10 happiest cities for years.

With a total score of 6.6, it is therefore better to spend your old age under the Australian sun. Rio de Janeiro is also doing well. It’s also cheap there, but the city ranks low on the list of happiest cities. Helsinki is in 3rd place with a score of 6.5. Amsterdam honors the Dutch mentality of the sixes with a 6.0. In Asia, you are not really comfortable in your old age. Hong Kong, Tokyo, Singapore, Seoul and Delhi are the worst retirement cities in the world. See the full preview here.

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? Nothing urgent. And above all, think about your mental happiness. Make sure you have social contacts, stick to your goals, and stay healthy and active. Above all, enjoy your free time and do things you love. Otherwise, your money, which is meant for a happy retirement, is of no use to you.