The amount of super you will have sufficient depends on a variety of factors beginning with what you’re comfortable retirement will look like to you. There is a chance that you would like to travel or like to dine out each week at a posh new restaurant. You might desire to assist your kids and grandchildren or to just unwind and relax without worrying about money. Also, there are some one-time expenses to consider, such as the purchase of a new car, or payment for a retirement village.
1. How many supers will suffice?
It is important to think about it as early as possible. Don’t wait until you’re sixty. The first step is to determine how much you’ll need when you retire. Utilize this information to determine the amount of superannuation you’ll need to be enough to help you through retirement in a healthy way. There are many methods to determine the amount of super that will be enough to cover your retirement expenses as well as a variety of calculators online to assist you. ASF, the Association of Superannuation Funds the Australian Retirement Standard for an instance have been doing some calculations.
They have estimated that when you reach 67 an individual who is seeking to live a comfortable life will have to factor in an annual cost of living of $45,962. Couples can enjoy a ‘comfortable lifestyle is predicted with a living cost of $64,771. Both situations take into consideration the fact that you own your home for free. However, the lump sums required for an average lifestyle are small at $70,000 for singles and couples.
2. How much Super will I need with an increase in inflation?
If you look at the numbers in 20-30 years, the numbers will be quite different if you take the cost of living into consideration. However, the standard is updated every four months year to reflect the price increase of things such as food and utility bills. The report also examines the evolving lifestyle expectations and their spending habits. Since the cost of living rises every year, and the costs become increasingly expensive, calculations of the amount you’ll need to spend to retire are adjusted.
3. Aged Pension?
If you’re thinking you’re correct with only the pension for old age then you should take a look at the rates currently in place. For the age pension, there is a maximum of $900.80 for one individual per fortnight. If you’re married and you are married, the cost is $679 for each fortnight. This won’t leave much to choose for your retirement lifestyle. It’s not possible to rely on the aging pension, to be able to afford the lifestyle you’d like to live when you retire, you’ll have to add more money to your super.
4. How can I help increase my retirement savings?
Check the ideas to see the way this works from a tax standpoint. This will cover all Australian Tax Office rules and limitations on the amount you can add to the super. You should calculate how much super will cover you when you retire. Get started now on figuring it out!
It might be worthwhile to analyze your spending habits before you retire. This will help you determine how much money you can afford to live on, and how long you’ll need to work, either full-time or part-time.
6. Adding a little bit more
You can make a significant difference in your retirement by making small contributions to your super fund. It’s a good idea if you can make voluntary contributions each year to your super fund.