How much do I need to retire? This is a question we often get asked when people begin planning for retirement. While the answer varies from person to person, considering the Association of Superannuation Funds of Australia (ASFA) quarterly figures can provide a good tangible starting point.
The figures are based on an annual budget required to meet the different lifestyles. They assume that the retiree(s) own their own home.
For the modest lifestyle retiree(s) can only afford a few basic activities above those afforded by retiree(s) receiving a Full Aged Pension only.
In its latest review, dated December 2012, ASFA’s Retirement Standard report stated that a couple looking to achieve a ‘comfortable’ retirement will need to spend $56,339 per year, whilst couples seeking a ‘modest’ retirement lifestyle will need $31,555 per year. The quarter ending December 2012 reflected a 2.0% to 2.8% increase from the previous quarter.
For many, superannuation will be the only vehicle that will provide for retirement. If that is the case taking advantage of the superannuation concessions can be rewarding. The growth in Self Managed Superannuation Funds over the last few years has demonstrated that people not only want to plan for their retirement but they wish to have better control over it.
While the final outcomes will vary with lifestyles selected and the strategies undertaken, planning for retirement should be considerable as soon as possible.
To help you work out if you have enough for retirement talk to Solid Financial Advisors. We can assist with tips and strategies that will improve your retirement savings.
Nick Status, Solid Financial Advisors