Rule of thumb
The Financial Services Council believes most Australians will need around 62.5 per cent of their pre-retirement income to maintain their standard of living in retirement, multiplied by their life expectancy1. At this stage of life, you shouldn’t have children to worry about, may need one less car and tax won’t be as big a burden if you structure your finances correctly. What you have has to last you a lifetime.
Budget to get it right
The Association of Superannuation Funds Australia (ASFA) publishes a Retirement Standard which estimates the annual budget of retirees based on their lifestyle.
These are the bottom line results of their 2013 research1:
| modest lifestyle | comfortable lifestyle | |||
| single | couple | single | couple | |
| weekly | $432.26 | $623.49 | $788.02 | $1,078.50 |
| yearly | $22,539 | $32,511 | $41,090 | $56,317 |
It is worth using our budget calculator to work out how much you spend each year and compare this to ASFA’s budget breakdown.
Do you have enough super?
The question we are most often asked. The answer is different for every person. The answer will depend largely on your retirement objectives and cost of living. Sinclair Financial Group can assist you to understand your cost of living and whether you do or will have sufficient funds for your retirement.
1 http://www.superannuation.asn.au/resources/retirement-standard
Contact us to arrange an appointment to discuss your Retirement Planning options.
GENERAL ADVICE WARNING
This information is of a general nature only and you need to seek professional advice based upon your own personal circumstances before acting. Although we consider this material reliable, no warranty is given and no liability is accepted for any statement or opinion or for any error or omission.