This is how much you really need to retire comfortably
The dream of having a comfortable retirement using superannuation has become increasingly out of reach for many Australians.
YouGov research commissioned by wealth platform Dacxi has found that more than half (54 per cent) of Aussies don’t believe they’ll ever be able to retire comfortably using their superannuation.
Australians have around $3.5 trillion invested as superannuation assets, but Aussies are still feeling skittish about the prospect of retirement.
In fact, the Dacxi research found just 29 per cent of Aussies said they would be able to retire comfortably on their superannuation by the age of 65.
The Association of Superannuation Funds of Australia (ASFA)’s estimate of annual expenses for a couple retiring comfortably at 65 is $64,771 a year (if you own your own home).
Women were more likely than men to be pessimistic about their superannuation, with 64 per cent saying they couldn’t rely on their superannuation to retire comfortably, compared to 45 per cent of men.
So, how much do you need for retirement?
If you own your home, you will be in a better position for retirement.
Super Consumers Australia recently released new retirement-savings forecasts for homeowners, finding that you may need as much as $1 million if you are a couple and want to spend about $75,000 a year.
If you’re single and want to live on a more modest $29,000 you’ll need $73,000 on top of what you’ll get from the Aged Pension.
“Among the most important financial questions retirement-planning Australians face is how much they need to save and what income those savings will deliver in retirement,” Super Consumers Australia director Xavier O’Halloran said.
“These new retirement targets are designed to help people answer these questions.
“They provide a solid ‘rule of thumb’ for what is needed to maintain your living standards when you’re retired.”
What if you want a luxury retirement?
So, what if you are in a couple, own your home and still want to spend more than $75,000 a year in retirement?
Dacxi research found 23 per cent of Aussies said having a high-performance investment strategy was the best indicator of their ability to grow wealth.
However, only 5 per cent of Aussies felt having a financial planner was a good indicator of one’s ability to grow wealth.
Read the full article: https://au.finance.yahoo.com/news/this-is-how-much-you-really-need-to-retire-comfortably-005719990.html
