Retirement Planning

It is never too early or too late to start planning for your retirement. Retirement is the time to enjoy the fruits of your many years of labour, not a time to scrimp and save. You need to make sure you have enough savings in your superannuation to make your retirement a comfortable one.

Which raises the question: how much is enough?

The amount of annual income you’ll need in retirement is completely personal and depends on the lifestyle you want after you stop working.

As a general guide, the Association of Superannuation Funds of Australia estimates that a single person will need $42,433 per year, and couples $58,128 per year, to lead a comfortable lifestyle in retirement.

A ‘comfortable lifestyle’ is defined as one that allows an older, healthy retiree to maintain a living standard that includes purchasing household goods, private health insurance, a reasonable car, good clothes, a range of electronic equipment, domestic holiday travel, and the occasional international holiday.

Prior to retirement, there are some important questions you need to ask yourself, including:

  • What do you want to do in retirement?
  • How much money will you need to do it?
  • Do you need a regular income?
  • Where will this income come from?
  • When can you retire?
  • How and when will you be able to access your super?
  • What Government support will you be eligible to receive?