How to Determine How Much Super You Need
Though most people can’t wait to retire and get away from the hustle and bustle of getting up and going to work every day, it can also be a scary time. Many struggle with money during their retirement. However, after working hard your entire life, you deserve to enjoy this time. For this reason, it is important to determine how much super you will need.
The amount of super that you need depends on:
- How long you expect to live. Retired men can expect to live to 86, retired women to 90. This means if you stop working at 60, you are likely to need retirement income for at least 26 to 30 years, if not more. Think about your life expectancy. (Source: ASIC’s Money Smart)
- What type of lifestyle you want. Think about your lifestyle and how much it costs. Are you going to want to live the same way or can you live a little simpler (and cheaper)?
- Your future medical costs. Unfortunately, as we age, our medical costs increase. Though we are living much longer lives, our health is not always in the greatest shape. It takes a lot of doctor’s appointments, diagnostic tests, and even medication to ensure that we are living as healthy as possible.
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. You can use this guide to estimate how much money you’ll need to have a ‘comfortable’ or ‘modest’ retirement.
Unfortunately, not everyone will have enough to retire without some dedicated planning and effort. For this reason, it is important to talk to a licensed financial adviser who can help you ensure that you will be able to live comfortably as you age. A few wise investments will really make a difference!
Use one of our super calculators to help you ensure that you are on track for your retirement.