The latest figures from the ASFA Retirement Standard show that a comfortable retirement lifestyle costs a couple around $54,954 a year and a single person around $40,121.
This translates to lump sums required at retirement of approximately $430,000 for a single and $510,000 for a couple, assuming part receipt of the Age Pension and home ownership.
So how are you tracking? Use the ASFA Retirement Projector to find out.
Compulsory super will certainly go some way towards saving enough for a comfortable retirement lifestyle, but in reality it’s going to take more than the 9 per cent compulsory superannuation that your employer pays on your behalf.
There are various other ways that you can boost your retirement savings throughout your working life that will really add to your nest egg in the long run. These include:
Extra contributions
These are extra contributions made by yourself, either before or after tax.
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Government co-contribution
This is where, if you are a low and middle-income earner, you make extra super payments and the Government matches you dollar for dollar (up to $1000, depending on your income).
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Spousal contributions
Where your spouse makes a contribution to your super account and they receive an income tax rebate.
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Try the contributions optimiser to experiment with how best to make your additional contributions.
You should you consider all your financial commitments, such as your home loan, children’s education etc, before deciding to make extra contributions to your super. Once you have made a contribution to your super account, you can’t withdraw the money if you suddenly need it later, so make sure it’s money that you afford to put away.
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