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For some of us retirement seems far away, but for many Australians, it’s so close we can almost taste it! Do you know how much you will need to retire?

Figuring out how much you will need when you retire requires careful planning. It’s never too early or too late to start planning to ensure you’ve got the funds to last you a long and happy retirement.

The Association of Superannuation Funds of Australia (ASFA) estimates the following budgets based on modest and comfortable lifestyles, assuming that retirees own their own home outright and are relatively healthy.1

Budgets for various households and living standards for those aged around 65
(December quarter 2016, national)

   Modest lifestyle  Comfortable lifestyle
  Single Couple Single Couple
Total per year $24,108 $34,687 $43,538 $59,808


Budgets for various households and living standards for those aged around 85
(December quarter 2016, national)

   Modest lifestyle  Comfortable lifestyle
  Single Couple Single Couple
Total per year $23,603 $34,992 $39,171 $54,960


What is a modest lifestyle?

Living a modest lifestyle in retirement is considered better then the Age Pension, but you’ll still be able to afford fairly basic activities. This could include some short holidays each year near where you live, eating out quite occasionally, and some paid leisure activities. You may also own an older, less reliable car.

According to ASFA, for those aged around 65 this will equate to around $24,000 per year for a single, and $35,000 for a couple.

What is a comfortable lifestyle?

Living a comfortable lifestyle in retirement could include an annual holiday in Australia (with occasional international travel), eating out regularly at restaurants, participating in a broad range of leisure activities and owning a reasonable car.

According to ASFA, for those aged around 65, this will equate to around $44,000 per year for a single, and $60,000 for a couple.

An MG Partners financial adviser can help you make sense of this by projecting your final savings at retirement, determining your future income potential and taking you through your options.

Why financial advice is important

More than at any other time in your life, talking to a financial adviser before you retire will help put you on the road to financial security and access the following benefits:

  • Getting help from an adviser can help you decipher complex super and tax legislation and translate them into actionable strategies
  • They follow a proven process to ensure all aspects of your financial well‐being are covered
  • They can help you assess the best income stream option and also structure your retirement portfolio to minimise tax
  • They are supported by a network of technical and qualified advisers in super and retirement
  • You can schedule regular reviews to ensure you stay on track before and after you retire so all you need to focus on is enjoying a new more relaxed lifestyle.

Ready to talk retirement or just want more info? Call MG Financial Services today on 03 9523 6500 or email us at reception@mgaccountants.com.au


 

1The Association of Superannuation Funds of Australia Limited – https://www.superannuation.asn.au/resources/retirement-standard

MG Financial Services Pty Ltd ABN 71 419 516 618 provides financial planning services as an Authorised Representative of Count. ‘Count’ and Count Wealth Accountants® are the trading names of Count Financial Limited, ABN 19 001 974 625 Australian Financial Services Licence Holder Number 227232 (‘Count’) a wholly-owned, non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124. Count is a Professional Partner of the Financial Planning Association of Australia Limited.

The advice provided is general advice only as, in preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.

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