The big picture
Most people will live well into their eighties, so if you retire at sixty-five, you’ll hopefully still have at least another twenty fabulous years to enjoy after you stop working. That means you’ll need to plan for a minimum of two decades of retirement income. So, how much is that in dollars? Well, that depends on a few things:
Large costs
Think about the big-ticket items you’ll need to pay for during retirement (a mortgage, rent, medical bills or travel costs etc).
What kind of lifestyle do you want?
A ‘comfortable lifestyle’ means different things to different people. Do you want to maintain the lifestyle you had pre-retirement? Or will you be more minimalist? Are you planning to travel the world? Consider the potential needs and wants of your future self. This will help you understand how much you will need to set aside.
Not sure? For guidance, here are a few ballpark figures estimated by The Association of Superannuation Funds of Australia.
Couple – modest
$45,106
$867
Couple – comfortable
$69,691
$1,340
Single – modest
$31,323
$602
Single – comfortable
$49,462
$951
ASFA Retirement Standard, December quarter 2022
Planning for your retirement now means you don’t have to worry about it later. There are plenty of ways you can grow your super.
Find out more here.
