How much super do I need to retire comfortably?
Planning for your retirement can sometimes seem like something to worry about another time, but do you know how much super you require to ‘retire comfortably?’
Research undertaken by The Association of Superannuation Funds of Australia (ASFA) found that only around two-thirds of Australians actually open up emails and letters from their super funds, with only 26% of people actually knowing what their super balance was. If you don’t know where your super stands, you’re not the only one.
The ASFA’s definition of a comfortable retirement is one where the retiree can afford occasional travel, a mid-range car, top-level private health insurance, household goods and be involved in a range of recreational activities.
What many Australians don’t understand however is that there’s currently a large gap between the amount of super most people have saved up and how much they actually need to retire.
How much super will I need for a comfortable retirement?
Recent estimates for superannuation balances found that to achieve a comfortable retirement, couples would need a balance of $640,000, with singles needing $545,000. However, the amount required very much depends on the quality of lifestyle the retiree wishes.
The shock can suddenly set in when you understand what you should have in your balance based on your age. Recent research by Canstar found that 30-year-old men & women should have $61,000 in their super right now to be on track for that ‘comfortable retirement’. However, the average balance for this age ground current stands at around $37,000. Eye-opening stuff right?
The importance of understanding your current super situation vs your expectations for retirement cannot be stressed enough. Taking the time to understand your super situation today could make all the difference to ensure that you enjoy that well deserved, comfortable retirement.
Not sure where you stand with your super currently? Speak to one of our financial advisors today to see how we can help you plan and prepare for your retirement.