It is the ultimate question in the lead-up to retirement – how much super is enough?
It would be wonderful if there was a way to accurately predict how long you’re going to live, precisely what’s going to happen in terms of inflation, real estate and other economic influences during your retirement and exactly what you’re going to do (and how much money you will need to do it) every day for the rest of your life. Without such perfect knowledge of the future, here’s some useful guidance.
Assuming your home is owned outright and you are relatively healthy, a couple who wish to live a ‘comfortable’, as opposed to ‘modest’, existence in NSW will require just over $58,000 a year in today’s value. Those choosing a modest lifestyle will only need $33,568a year.
A single male in NSW will need $40,148 annually for a comfortable lifestyle and $23,096 for a modest lifestyle. A single female will require just slightly more, at $42,306 and $23,236 respectively.
If that sounds daunting, you’re not alone, as many people approaching retirement don’t have enough in savings for a comfortable lifestyle. Fortunately, there are strategies that can help you make the most of what you have and make wise financial decisions as you transition into retirement.
Remember that every individual case is different and the best advice is to simply discuss your wishes with your Roberts & Morrow Financial Services Adviser. This way a customised plan can be created for you and constantly checked and updated as time goes on and situations, both personally and in the broader economy, continue to change.
Source: Association of Superannuation Funds Australia (ASFA) Retirement Standard Calculator (www.superannuation.asn.au).