Couple of retirement planning questions (I wanted to work into my overall plans including property) if I can ask for advice:
Q1 – What Max/Min values I should use for retirement planning, to cover over the next 15 years say? For:
a) inflation rate? (maybe 2% – 4%)
b) interest rate on lump sum after retiring? (4% – 6%)
c) super growth rate prior to retiring? (5% – 7%)
Q2 – Is there a "rule of thumb" re what inflation rate to use relative to either items b) and c) above? For example is the interest you get on lump sum typically going to be X% (e.g. 1%) higher at least?
Background: Had done first set of calc's and through we were set, then noted I hadn't included inflation It obviously makes a huge different to the end result what assumption you make above.
For a) I would go for about 3% per annum, using 3% as the average. But if you want more detailed inflation averages, you could look at historical interest rates in Australia, e.g. in last 20 years, and use the average of that as your figure.
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