Note: This article is updated every 6 months with the latest lifestyle/income data. The most recent data was released in December 2017 (for lifestyle costs up to September 2017) and includes Age Pension rates (applicable from 20 September 2017). The tables in this article list lump sums needed to finance a retirement of 25 years, or 35 years, which remain applicable whether you retire at Age Pension age (now at least 65.5 years) if relying on a PART Age Pension, or age 67 or even 70 years of age or older.
New figures for 3% investment returns: If you opt for a lower investment return during retirement, then you will need a larger lump sum when you start retirement. Due to reader demand and in response to a lower interest rate environment, we have included additional figures, listing the lump sums needed on retirement if your super/investments returns are 3% a year during retirement, as well as if investment returns are 5% or 7% a year during retirement. The lump sum amounts quoted in the PART Age Pension tables, take into account all 2017 Age Pension changes.
The most popular question about superannuation and retirement planning is, without doubt: How much money is enough?
A glib response to this question may be: Enough money for what? From the many times, though, that I’ve been asked this question, I know that when most Australians ask it, they really want to discover the answer to: How much money do I need in retirement to maintain (or improve) the lifestyle I currently have until the day I die? For some Australians, the question also includes: ‘And to leave enough money to help my family after I’ve gone?’.