Retirement-2, Walker Wayland

Feb 2018 3 Minutes

Superannuation – How much you need for a comfortable retirement?

You can now check what your superannuation balance should be at age 30, 40, 50 and 60 using the newly released figures from the Association of Superannuation Funds of Australia (ASFA).

A comfortable retirement generally refers to being able to afford leisure activities, good standard of living, have a decent car, private health insurance and take a domestic holiday.  According to ASFA’s retirement standard, single people will need $545,000 in retirement savings and couples will need $640,000 in order to have a comfortable retirement.

Growing Your Member Balance

There are numerous strategies in which to grow your superannuation fund’s wealth.  There are options in which to grow your account balance through contributions and investment decisions.  There may be some benefit to discussing the fund’s investment strategy with a Financial Planner.

Please contact the office and arrange a meeting if you would like to discuss these options or any other strategy such as retirement planning.  Making decisions now can greatly affect future outcomes for your superannuation fund’s wealth.

To review the retirement standard please visit - https://www.superannuation.asn.au/resources/retirement-standard

Comfortable retirement

Single $44,011 a year *
Couple $60,457 a year *

  •  One annual holiday in Australia
  • Regularly eat out at restaurants. Good range and quality of food
  • Owning a reasonable car
  • Afford bottled wine
  • Good clothes
  • Afford regular hair cuts at a good hairdresser
  • Take part in a range of regular leisure activities
  • A range of electronic equipment
  • Replace kitchen and bathroom over 20 years
  • Private health insurance

Modest retirement

Single $24,506 a year *
Couple $35,189 a year *

  • Infrequently eat out at restaurants that have cheap food. Cheaper and less food than a ‘comfortable’ lifestyle standard
  • Owning an older, less reliable car
  • Afford cask wine
  • Reasonable clothes
  • Afford regular hair cuts only at a basic salon or pensioner special day
  • Take part in one paid leisure activity infrequently. Some trips to the cinema
  • Not much scope to run air conditioner
  • No budget for home improvements. Can do repairs, but can't replace kitchen or bathroom
  • Private health insurance

Age Pension

Single  $21,222 a year *
Couple $31,995 a year *

  • Even shorter breaks or day trips in your own city
  • Only club special meals or inexpensive takeaway
  • No car or, if you have a car, it will be a struggle to afford repairs
  • Home brew beer or no alcohol at all
  • Basic clothes
  • Less frequent hair cuts or getting a friend to cut your hair
  • Only taking part in no cost or very low cost leisure activities. Rare trips to the cinema
  • Less heating in winter
  • No budget to fix home problems like a leaky roof
  • No private health insurance

Figures from September Quarter 2017.

* Base rate before payment of supplements