How much is enough?
How big is your nest egg?
When it comes to super, size does count. Your employer's super
contributions may not be enough if you want to be financially
secure when you retire.
Find out approximately how much money you'll need when you stop
How much is enough?
How much extra money you contribute to your super depends on
what you'll need to live off once you retire. The amount of super
you need depends on:
- How long you live
- What type of lifestyle you want
- Future medical costs
The table below will give you a rough idea of how much money you
need to support a modest or comfortable retirement. It applies for
people retiring at age 65 who will live to an average life
expectancy of about 85. It assumes you own your home.
|ASFA Retirement Standard
||Annual living costs
||Weekly living costs
|Couple - modest
|Couple - Comfortable
|Single - Modest
|Single - Comfortable
Another way to estimate how much money you will need in
retirement is to assume you need 67% (two-thirds) of your income
before you retire in order to maintain the same standard of living
in retirement. This estimate is only suitable for above
average income earners.
ASFA estimates the lump sum needed to support a comfortable
lifestyle for a couple is $640,000 (or $545,000 for a single
person) assuming a partial Age Pension. ASFA also estimates that
because a modest lifestyle is mostly met by the Age Pension the
lump sum required to support it for a couple is $35,000 ($50,000
for a single person).
ASFA Retirement Standard, March Quarter 2017.
How are your super savings
When you have an idea of how much you'll need n retirement, the
next step is to work out how you're tracking.It's never too late to
boost your retirement savings if you don't have as much as you'd
like to have. Our retirement planner can estimate what
your income in retirement will be from super and/or the Age
pension, and lets you explore ways to improve your outcome.
Work out what income you are likely to have at
Knowing how much you'll need when you stop work
is a good starting point. The key is to act now and do as much as
you can to grow your super.
Last updated: 30 May 2017