Have you got a retirement plan in mind? Is it to travel overseas, hit more balls on the golf course or spend more time with family and friends? Whatever your goals, you’ll need to have a plan for how you’re going to get there financially.
Everyone’s idea of how much money they’ll need to retire on is different.
As a guide, the Association of Superannuation Funds of Australia (ASFA) suggests couples around age 65 will need approximately $59,000 a year and singles will need about $43,000 in today’s dollars to live ‘comfortably’. Now this is assuming you’re in relatively good health and that you own your own home.
On this budget, you should be able to afford things like a new car, private health insurance, dining at quality restaurants and have local, and some overseas, holidays.
By comparison, a ‘modest’ yearly budget of around $34,000 for couples or close to $24,000 for singles would provide a more basic lifestyle. This means you’d probably have to keep your older appliances and car for a longer period of time, eat out less frequently and generally stay locally for holidays.
To work out how much money you’ll need in retirement, start by asking yourself these questions:
Once you’ve considered these questions, think about ways to give your financial situation a boost while you’re still working.
It’s also important to note that the Federal Government proposed a number of changes to superannuation in the 2016 Federal Budget, which may progress to legislation.
Start a conversation with us today to seek financial advice before making any decisions regarding additional super contributions.
You need to consider with your financial planner (or adviser), your objectives, financial situation and your particular needs prior to making an investment decision. Sensibly Pty Ltd and its authorised representatives (or credit representatives) do not accept liability for any errors or omissions of information supplied on this website
Nick Shanley, Steve May, Luke Styles and Shanley Financial Planning T/A Steve May Financial Services are Authorised Representatives / Corporate Authorised Representative of Sensibly Pty Ltd, AFSL 533923. Please refer to our website at www.stevemayfs.com.au to reference our Financial Services Guides.
Shanley Financial Planning Pty Ltd trading as Steve May Financial Services (ABN 19 612 825 180) is a Corporate Authorised Representative of (1265706) of Sensibly Pty Ltd (AFSL 533923)
Nick Shanley, Steve May and Luke Styles are Authorised Representatives of Sensibly Pty Ltd (AFSL 533923)