![]() Think about the kind of lifestyle you want in retirement You can also register for ‘Do you need $1 million to retire?’, a free webinar, with our AustralianSuper Education team. ![]() To work out how much super you might need for retirement, here are some things to consider. Once you know that, you can go about formulating how much money you need to retire. What can be more important though, is having a good understanding of what a ‘comfortable retirement’ looks like to you. It’s completely understandable – and can be helpful – to have a figure in mind for your retirement savings goal. According to the Association of Superannuation Funds of Australia Limited (ASFA), Australians aged between 60-64 have a median balance of $178,808 for men, and $137,051 for women 1. While 7 figures in superannuation may sound great, the reality is most people heading into retirement won’t have anywhere near that amount. A comfortable retirement will look different for everyone. But the truth is there’s no one-size-fits-all amount. You might’ve heard you need $1 million – it’s the figure that’s often thrown around as the financial retirement ideal. Adjust the level of income you might need in retirement.Ĭhanging the dial on one or more of these factors is likely to have a flow-on effect on the others, which means that even if you can’t or don’t want to change one of them, changing another might still get you to a similar outcome.28 June 2022 How much money do you need to retire? It’s a question most Australians ask themselves at some stage.Change the age at which you retire – meaning your super is potentially accumulating for longer.Top up your super with extra contributions on top of what your employer pays.One of the most important things to remember is that, even if your ‘will need’ and ‘will have’ figures aren’t quite matching up at the moment, there are always options to try to influence and improve your outcomes. It's always a good idea to consider seeking professional advice before finalising any decision that might have an effect on your financial future. Retirement tracker (Association of Superannuation Funds of Australia)Ĭalculators are a useful way to look at different scenarios, tweak some settings and learn what may and may not work for you, but they won’t provide you with an exact answer based on your personal circumstances. ![]() Here are a few calculators you might want to try: ![]() You can use some simple tools and calculators as a starting point to get an estimate or indication of how much retirement income your super might provide for you at retirement, based on where it’s at now. Once you know what level of annual income you’re likely to need in retirement, the next step is seeing if your current super position is on track to get you there. The ‘modest’ retirement is defined as having more than the Age Pension but still only being able to afford fairly basic activities. The ASFA Retirement Standard includes a budget for a ‘comfortable’ retirement, which allows for private health insurance, a reasonable car, a regular domestic holiday and the occasional overseas trip, in addition to general living expenses. Take a tip from the experts: If you don’t really know what your expenses will be like in retirement, the Association of Superannuation Funds of Australia (ASFA) researches a budget for singles and couples to base their retirement living costs on.Set your budget: If you’ve got a good idea of what your expenses may be like in retirement, that gives you an indication of what sort of annual income you’ll need.Two-thirds of salary principle: Aiming for enough super to provide you with an annual retirement income equal to about 60-70% of your current gross salary, or what you think your salary might be near retirement, is often considered what you may need to continue a similar standard of living.Here are a few methods and resources that might help you start thinking about what sort of number is right for you: Understanding your individual circumstances, goals and desired lifestyle may help you determine how you'll need, or want, to spend your money when you start living off your super. "How much super is really enough for retirement?".This can be a hot topic, but it's not 'one-size-fits-all'.It's about having enough to meet your particular needs when you retire, and the income required to help your savings go the distance.
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