The ASIC MoneySmart website has a handy reference page titled – ‘How much is enough?’
It’s a good question to ask yourself while you’re working hard to save up a nest egg for retirement. Will your super balance make the grade to last as long as you do? Will it give you the lifestyle you want along with being sufficient to meet any future medical costs when life starts getting fragile? These considerations must form part of the thinking to answer ‘How much is enough?’.
According to the Retirement Standards set by the Association of Superannuation Funds of Australia (ASFA), the annual budget needed to run a household will vary depending on the kind of retirement lifestyle you want – be it ‘Modest’ or ‘Comfortable’ and whether you’re ‘Single’ or a ‘Couple’. For example; the AFSA Retirement Standard lists the following annual household budget requirements;
|Modest Lifestyle||Comfortable Lifestyle|
|Total per year||Total per year|
Do you know where will your retirement income end up?
You can easily calculate how your super balance is tracking compared to these ASFA Retirement Standards using one of the many publicly available retirement planning calculators. But there’s one thing for sure – there are no exact formulas to how you’re going to get there.
Knowing how much will be enough is important – in fact, this is fundamental. However, it’s just as important is know the track you have to run to achieve enough and who it is that can help you to get there. So perhaps the additional questions that should be asked could be – ‘How will I get there?’ – and – ‘Who will help me?’
Before the Global Financial Crisis (GFC), people just weren’t thinking of the investment markets tumbling and taking their hard-earned superannuation balance with them. They were confident given the strong performance over the previous decade. Then, the unthinkable happened. The markets plummeted. People who had retired one week were back at work the next – their retirement savings had dropped so significantly in such a short time they felt they had no other options. Such was the financial anguish they experienced at that time.
Things like this happen in the investment world from time to time – and sometimes they seem so unfair. Knowing how to grow your super in a safe way, to protect the super you’ve worked so hard to build and having professionals help you to navigate the tricky bits can make all the difference.
Every day we help people plan out their track to retirement. We help them know where they need to be and how they can get to where they want no matter if they’re 35, 55 or 65 years old and more. We don’t expect them to be able to make their way through the complexities of superannuation themselves so we provide a service to hold their hands and keep them on-track. This is how we help – and we can do this for you too.
Contact us today to arrange your complimentary appointment with one of our Superannuation Specialists to see how you’re tracking for retirement and how we can help you to get what your want.