If $40,000 a year sounds like your kind of retirement, the next step is to work out how much super you will need to fund it.
Knowing what and where you will spend will make retirement planning much easier, and help you avoid retirees’ biggest fear: outliving their savings.
Chris (47) earns $180,000 per year and has $430,000 in super. Lisa (48) earns $80,000 per year and has $220,000 in super. They have one daughter at university and are close to paying off their mortgage. They want to know if they are on track to retire when Chris turns 60.
Dan (60) is a freelance web designer who earns $76,000 a year. He hasn’t always put money aside for super, so his balance is a relatively low $120,000.
There can be a bit of a learning curve with MoneySmart’s Retirement Planner, and it may appear intimidating at first glance, so we created a short video to help you get an understanding of how the tool works.
Deb is worried that she won’t have enough savings to live comfortably in retirement and, at age 52, wonders if she’s left it too late to catch up.
Amara Haqqani from Milliman discusses how the estimates we hear about how much super someone needs for retirement are limited because everyone’s needs are unique.
Many super funds provide a retirement estimate to help you work out how you’re tracking when it comes to your likely retirement income. But how do funds calculate their estimate and is it accurate?
Everyone likes to know how their financial position compares to others of the same age. It’s no different when it comes to your super account. But how can you find out how you compare with your peers and whether you are on track – or behind the pack?