The question of comfortable retirement more often than not comes down to the amount you have saved in superannuation (super).
So, how much super will you need to retire comfortably?
The amount of money needed for a 'comfortable retirement' will look very different for everyone, as each individual and/or couple's circumstances are very different - from their financials, lifestyle and dependants.
According to the Association of Superannuation Funds of Australia’s Retirement Standard, to have a ‘comfortable retirement, single people will need $545,000 in retirement savings, and couples will need $640,000.
Please note, this figure is updated four times/year to take into account the rise/decline in prices of significant items such as food and utilities.
The key areas which define whether an amount is sufficient for retirees comes down to their affordability for vital living expenses including;
To give perspective, a modest retirement amount and lifestyle is one classed as "better" than the Age Pension, whilst being able to afford basic activities.
A comfortable retirement lifestyle enables 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;
Private health insurance;
A range of electronic equipment;
Domestic and occasionally international travel
How to set your retirement balance target.
Once you have envisioned what you want and need in retirement it is important to take a step back and plan the strategy to work towards it.
As noted by Super Guide, to work out how much super you need here is a checklist of factors you should consider.
Years in retirement;
Whether you are an individual or in a relationship;
Whether you plan to keep working;
How much you spend;
Whether you own your home;
Whether you have an investment property portfolio and/or share portfolio;
What other assets or income you have;
Whether you are eligible for the Age Pension;
How much your super grows in retirement;
Whether you want to help the kids
We recommend speaking with an appropriateldy qualified financial adviser to map out your individualised strategy. The information mentioned on this blog post is general in nature.
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Victor Erzikoff – Sales Administration and Client Liaison Manager
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Disclaimer: When considering purchasing a property, it's always prudent to seek the advice of an appropriately qualified professional to determine which strategy is most appropriate for your individual circumstance.
 Super Guide