Often when people work with an adviser to find out how much they need to fund their retirement, they work out that they may not be able to get to where they need to be.

They might determine, for instance, that they need $1.6 million but with their current savings strategy be only able to reach $1.2 million. In this case, there is no magic bullet for figuring out a compromise (other than winning the lottery).

In the previous article, we discussed how long money needs to last, how much to spend, how much to leave the kids and how much risk to take with your money. By compromising on one or more of these aspects, obtaining those retirement goals will get a little closer.

For example, a person may decide to work for three more years. This has a double benefit – their savings grows for three more years, but they only need their money to last three fewer years, which can have a big impact on their retirement.

More risks may be taken where instead of investing all their money in term deposits, part of their portfolio can be put into riskier assets. This would therefore give a higher expected long-term rate of return.

It might also be worth accepting that the inheritance may not be as large as previously planned.

Finally, if all these compromises have been attempted in some way, it might be worth considering spending less.

It is very important to speak to someone to help ascertain where you are regarding meeting your retirement goals. We are always willing and ready to help you on your saving journey.