Before you can even begin to answer the question of how much super you need to comfortably retire, you first have to figure out what a ‘comfortable’ retirement is. Problem is, you’ve probably never been retired, so you don’t know what to expect from retirement and may not know what you will do.
The Government has put together some information, which you can take a look at here:
But whilst that could serve as a good starting point, it doesn’t really take into account what you were planning to do in retirement.
How Will I Know How Much Super I Will Need To Retire?
To work out how much money you will need, you have to ask yourself what you would like to do in retirement.
Will you go out for dinner multiple times a week? Or do you prefer stay in and cook for yourself?
Will you be getting a caravan and travelling around Australia? Or are planning regular overseas holidays and the comforts of the worlds hotels?
How you answer these questions and others will go a long way to determining how much superannuation you’ll need to have a comfortable retirement.
You’ll also have to consider the following:
- How much income will you need to fund your lifestyle?
- Would you like to help your children financially?
- What sort of social or extra curricula activities are you planning to do?
- How will your superannuation be invested in retirement?
- Will you be eligible for an age pension?
There’s some good tools out there (like the one linked below) that will give you a guide on how much superannuation you may have at retirement and the type of lifestyle you may be able to live.
If you have any questions, you want to have a chat about your plans for the future, or you want to discuss ways to improve your retirement, we’d love you to give us a call on 03 8782 3793 or book a chat today!.