Superannuation or ‘Super’, is money put aside by your employer or by yourself over your working life for you to live on when you retire from work.
Super is important, as the more you save, the more you will have in retirement!
In order to maintain a comfortable lifestyle in retirement you need to be pro-active now and ensure your super contributions are sufficient to meet your expectations. You also need to ensure your choice of super fund is performing to maximise return.
Working out how much money you will need in retirement depends on your personal situation. Not only does the amount of money you need depend on your lifestyle choices, but you may have some other income options in retirement (such as part time work or payments from other investments) which will supplement your super.
What you do need is to think about how much you’ll need early enough to do something about it !
The Association of Superannuation Funds of Australia (ASFA) believes a single personal needs an annual income of $42,953* and a couple needs $60,604* to live comfortably in retirement. To achieve this, depending on when you retire, ASFA estimate a single person would need $545,000* and a couple $640,000*. These amounts assume that retiree/s will draw down all their capital and receive a part Age Pension.
Is that enough for you?
To get an idea of how much super you will need, try out the how much super is enough calculator click here
Or try our Wealth report click here and see where your current position and strategy will have you in retirement. We can assist with strategies to help improve your position, contact us today.
Visit AFSA’s consumer website, www.superguru.com.au for more calculators and handy hints.
*Source: Association of Superannuation Funds of Australia Retirement Living Standard June 2018