Retirees often withdraw the minimum amount from their super pension for fear they will outlive their savings. But recent studies show many could safely spend more. So what is a ‘’safe” withdrawal rate?
Are you and your super fund a perfect match? All will be revealed in your fund’s product disclosure statement.
When it comes to super, small extra contributions made early in life can result in a bigger pay-off than larger contributions left till the last moment.
If your kids are old enough to have scored their first fulltime or part-time job, now’s the time to pass on everything you wish you’d known about super at their age.
By the time you retire you may think you know a thing or two about investing. But retirement raises new challenges, especially when it comes to structuring your income.
A million dollars is often talked about as the gold standard of retirement savings, but it is a suspiciously round number. Depending on your personal circumstances, you might live well on much less, say $750,000, especially if you are not a big traveller or you intend to continue working well into your 70s.
A million dollars is often cited as the gold standard of retirement savings. It certainly sounds like a lot of money, but it may not provide the income you require if you are a couple or if one of you has high healthcare needs.
Since 1 July 2017 there has been a limit on the amount you can transfer into a super account in pension phase. The question is, is this an arbitrary figure dreamed up by bureaucrats or is it enough for a dream retirement?
According to the ASFA Retirement Standard, a couple can live a ‘comfortable lifestyle’ with a retirement balance of $640,000 while singles can enjoy the same with $545,000. But these are guidelines only.
A million dollars is often bandied about as the gold standard of retirement savings. It certainly sounds like a lot of money, but is it enough to retire on not just comfortably but in style?
How much will $3.4m in super generate in retirement income for a couple across 25, 30 or 25 years?
The widely-reported ASFA Retirement standard suggests couples can enjoy a ‘comfortable lifestyle’ on just over $60,000 a year while singles can do the same on around $43,000. If that sounds less than comfortable to you, perhaps an income of $100,000 a year is closer to the mark.
So, you’ve done some preliminary sums and think you will need around $80,000 a year to live well in retirement. The ASFA Retirement standard suggests couples can enjoy a ‘comfortable lifestyle’ on around $60,000 a year and singles on about $43,000 a year. By this yardstick, $80,000 a year should support a more than comfortable retirement.
If $60,000 a year sounds like your kind of retirement, the next step is to work out how much super you will need to fund it.
If $50,000 a year sounds like your kind of retirement, the next step is to work out how much super you will need to fund it.