How much money do you need to retire?

Why we partner with people to plan their retirement

40% of Australians don’t know how much they have in super
A recent HSBC Research Report found 75% of Australians aged 45+ that want to retire in the next 5 years, but 43% say they can’t
71% of Australians retiring in the next 5 years said they do not have enough money saved
When it comes to having more than enough to retire on, only 7% actually think they will achieve this goal.
With longer lives, we expect longer years of retirement. 50 years ago, the average retirement was 12 years long. Someone retiring today at age 65 is expected to live to 85 or longer. That is 20+ years of retirement.
It is not realistic to finance a 20+ year retirement with 30 years of work.

What is your number one fear?

A recent survey asked baby boomers to name their number one fear.

What do you think it was?

Climate change? Terrorism? Global Pandemic?

No, the number one fear of baby boomers was outliving their savings.

Furthermore, a recent research report outlined that as much as 48% of all working Australians haven’t even calculated how much money they will need to retire.

So how much money do you need to retire?

Australians looking to enjoy a comfortable retirement have been told they need $640,000 in superannuation as a couple or $545,000 as a single.

A ‘comfortable’ retirement is one that includes one international holiday a year, good clothes, bottled wine, private health insurance and a reasonable budget for home improvements, as defined by Association of Superannuation Funds of Australia (ASFA).

Conversely, someone having a ‘modest’ retirement is looking at one or two short breaks near where they live, cask wine and no budget for home improvements beyond repairs. Both budgets assume the retiree is healthy and owns their home. Here’s how that breaks down:

However, these numbers should be used as a rough guide only, as retirement planning is complex.

With consideration to your individual budgets, retirement expectations, living arrangements, future aged care plans, investment income, income tax, capital gains tax & also inheritance tax.

For those that are looking to see how they are tracking, the following provides an overview of the average balances of superannuation & the balanced required for a comfortable retirement.

Prepared by www.canstar.com.au – 10/09/2020. Average balance per APRA’s 2019 Annual Superannuation Bulletin. Balance required today for comfortable retirement based on ASFA’s Super Balance Detective Calculator. Gap calculated as the difference betwe… — Prepared by www.canstar.com.au – 10/09/2020. Average balance per APRA’s 2019 Annual Superannuation Bulletin. Balance required today for comfortable retirement based on ASFA’s Super Balance Detective Calculator. Gap calculated as the difference between the average balance and the current balance required for a comfortable retirement.

What if I don’t think I have enough?

Australians approaching retirement who fear they don’t have enough need to talk to a Financial Advisor who will understand your concerns.

The next step is to consider the question: “If you want to go down this path, what’s the consequence?”

That means, if you’ve worked out you want to have $545,000 in super but only have $300,000, what steps will you either take to work longer, earn more or adjust your goals?

It’s about understanding the choices you have and being able to assess your situation & understand what I’m giving up by going down this path.

When we partner with our clients who are looking to retire, we reiterate that there are always options.

It’s great that you’ve noticed you’re approaching retirement and you’re starting to think about that.

Now we want to sit down and get into action mode, because there are so many strategies that are available to help you play catch up quicker than you might have thought.

That includes the option to downsize your home and put that profit into your super.

Also consider the role of Centrelink and concessional contributions in your plan.

Sit down with someone who knows these numbers … inside and out, and can map out your options so you can make an informed decision.

Retirement Planning

Long story short – the stakes are high when it comes to retirement planning.

There are no do-overs. You only get to go through retirement once.

You literally get one shot at this thing and there are a million places to make mistakes that could wind up costing you a lot of unnecessary pain/money.

As a retirement planner, we get the collective experience of going through retirement hundreds of times with our clients.

We can improve the odds of success for retirement & increase your financial literacy.

Newcastle retirement planning advice, Lake Macquarie retirement planning advice, Warners Bay retirement planning advice, Hunter Valley retirement planning advice, Central Coast retirement planning advice, Sydney retirement planning advice.

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How much money do I need to retire in Australia? 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.

How much do you need to retire at age 60 in Australia?

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.

However, our numbers suggest that if you are retiring at the age of 60 in Australia, looking for an average retirement income of $62,000:

You will require $830,000 in you are looking for your assets to last until age 100.

However, you will only require $735,000 in investment assets, if you are looking for your investment assets to last until your life expectancy of age 85.

How much super do I need to retire at 55?

If you require the average retirement income of $62,000 per annum – you'll need around $850,000 in investment assets to be sure you won't have to go back to work. With the capital longevity of these assets set to take you through to age 100.

However, if you wish to have assets to take you through to your life expectancy of 85, you will need around $780,000 in investment assets.

What is the average retirement income in Australia?

It's fair to assume that the average Australian might hope to live comfortably, if not lavishly, in retirement. The widely-reported ASFA Retirement standard suggests couples can enjoy a 'comfortable lifestyle' on around $62,000 a year

How much do I need to retire on $100,000 a year in Australia?

$1,185,000 in superannuation & other liquid assets, if you are looking for your assets to diminish by your life expectancy age 85.

However, if you are looking for a retirement income of $100,000 a year to age 100, you will require $1,340,000.

original article: Yahoo Finance

https://au.finance.yahoo.com/news/how-much-super-do-you-need-to-retire-004733151.html