Do you know how much money you’re going to need when you retire? Lots of people don’t and incorrectly assume that their minimum employer paid superannuation will be sufficient by the time they are ready to retire or that they’ll simply rely on the government pension.
However, it could be that you actually need quite a bit more than the base contribution, particularly if you don’t have other assets or investments.
How much money do I need to retire?
You can quickly jump on a retirement planning calculator, like this MoneySmart one here. By entering your current balance, age and income the calculator will calculate what super balance and income you may have available to you upon retirement.
You might be surprised at the results.
Some questions you need to ask yourself about your retirement
- What age do you want to retire?
- How long is your retirement likely to be?
- What lifestyle do you want to enjoy in retirement?
- What is it going to cost to live that lifestyle?
- Will you own your home outright?
- What other investments, assets or savings do you have?
- What is your current asset allocation and is this suitable?
What can you do if your super and savings looks like it’s going to fall short?
The sooner you can take action the better. By making additional contributions to your superannuation fund, you’ll find not only do you benefit from the long-term benefits of compound interest, but (depending on your income) you may find you are eligible to receive a government co-contribution to give this a little extra boost.
The benefits of speaking with a professional financial planner
Calculators and questions are no replacement for speaking to your trusted financial planner and putting into place a personalised plan to achieve your long term wealth and retirement goals.
It’s easy to feel overwhelmed and out of your depth, but with an entourage on your side you’ll be ready to tackle retirement head on. Contact us to book your retirement planning session.