Once you have worked out your income need in retirement, look at how you’re shaping up using one of the many online retirement calculators or apps that are available, such as the government’s Moneysmart Retirement planner. If some of this income is already provided (say from an investment property) then you can calculate the gap that will need to come from superannuation or other savings. Start by looking at what after-tax income you currently have, and then adjust this figure for expenses that will change in retirement (eg mortgage repayments finish, cost of children perhaps, and so on). Many clients tell us they’d rather not think about it, but in practice, it’s a simple and realistic way to approach the question of “will I be ok financially?” These numbers however don’t tell the full story if you’re not yet at retirement, or are aiming to retire on a different level of income.Ī more practical answer is to look at how much you spend at the moment. In both cases, this assumes home ownership, and receipt of a partial Age Pension. The single wanting a comfortable retirement will require a superannuation balance of $595,000. The report defines “comfortable” as “enabling an older, healthy retiree to be involved in a broad range of leisure and recreational activities and to have a good standard of living through the purchase of such things as household goods, private health insurance, a reasonable car, good clothes, a range of electronic equipment, and domestic and occasionally international holiday travel.”Ĭouples aspiring to a comfortable retirement will require a combined superannuation balance of $690,000. For singles, a comfortable retirement requires an annual income of $49,462. But one of the most commonly asked questions new clients ask our financial planners is “How am I tracking?” Well the answer really depends on your retirement goals.Īccording to the latest “retirees costs of living” assessment conducted by the Association of Superannuation Funds of Australia, a couple would require a yearly retirement income of $69,691 for a comfortable retirement. The whole point of superannuation is to help Australian workers build the savings we need to look after ourselves in retirement.
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