Is your super on target?
Got enough super?
Get MoneySmart and work out if you have enough super.
Here's what you can do.
Use our retirement
Whatever your age and no matter how much money you have, now is
the time to start building your super. Make a few small changes and
watch your super money grow.
The retirement planner shows you:
- How to look at your situation and make improvements
- What income you're heading for in retirement
- How to boost your super savings
See how your retirement's looking.
Boost your super savings
If you want to boost your retirement
income, you can consider:
- Increasing your super contributions
- Trying to reduce the fees paid to your financial adviser or managed fund
- Putting your money into slightly less conservative investment
options (but get financial advice before you act)
- Retiring later to keep the money coming in for longer
- Getting part-time employment
- Opting for a more modest lifestyle so you need less money in
Work out how much income you
List your assets and debts
Do a stocktake of your current financial situation. List all
your assets (e.g. house, savings, shares, investments in managed
funds, investment properties and super).
Also list your debts (e.g. mortgage, personal, car or investment
property loans, credit card balance and tax debts). Deduct your
debts from your assets to find out how much you're worth now.
What lifestyle do you want in retirement?
Next, work out how much income you need/want in retirement. It
all depends on the lifestyle you want or can afford. Think about
how much your income is now - you will need about two-thirds of
this income per year to maintain your lifestyle.
According to the
Association of Superannuation Funds of Australia (ASFA) Retirement
Standard benchmarks, a comfortable lifestyle for a couple,
including entertainment, a car, clothes, private health insurance
and holidays, can cost about $60,000 a year. A modest lifestyle
will still require about $35,000 a year per couple.
If you have been living on an above average income and you've
paid off your home loan, you might need about 67% of your
pre-retirement gross income to maintain your lifestyle. Talk to
your partner about your expectations, future plans and the
lifestyle you want.
Big retirement splurges
Also think about any major one-off spending after retirement.
You may want to pay off your mortgage, do home renovations, take a
big holiday or buy a new car. The trade-off is, the more you spend
early in your retirement, the less you have to live off later.
Income sources in
retirement can come from a range of sources, including super,
other investments and the age pension.
Think about your life
How much money you need in retirement depends on how long you
live. People are generally healthier and living longer than
previous generations. 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
Visit the My Longevity website to explore your life
Changes to super in 2017
Contribution limits and super tax concessions changed on 1 July
2017. Details on the changes are available on the Australian Tax Office (ATO) website.
Get financial advice
Planning for retirement is complex and it's important to get
advice from people with specialist knowledge. See financial
advice for more information on how you can maximise your money.
You can also talk to your retired friends to find out their
It's never too early to start thinking about how
to maximise your income in retirement. Take steps now to get the
best chance at the lifestyle you want.
Last updated: 09 Aug 2017