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It’s one of the most common questions that many of us may have at various points in life, especially as we get older and perhaps grow in a few more grey hairs and approach retirement age. How much should I save before retirement? If there’s ever been a bigger “it depends,” we’d love to hear it. There is no simple answer to this, but this blog may help you get a better idea of what your goals ought to be. How Comfortably Do You Want to Retire? Are you extremely frugal, only buying items on discount and keeping your discretionary spending to a minimum? Or are you more lavish and don’t mind spending extra on little luxuries from time to time? Consider this when accounting for your superannuation balance goals. The average superannuation balance needed at age 65 for a comfortable retirement is $690,000 for a couple and $595,000 for a single person, according to the latest figures from The Association of Superannuation Funds of Australia (ASFA) on Australian Government’s Money Smart website.  Are You Eligible for the Age Pension?
If you’re over 67 years of age and meet the eligibility criteria, you can apply for the Age Pension scheme. For individuals who lack sufficient income and have assets under a given threshold, the Age Pension and other schemes can supplement your retirement. This is mostly applicable to those who have not saved sufficiently in their superannuation and it’s seen as a safety net, but if you do have some savings you may still be eligible for some support. Generally, the more you have in assets and income, the less you receive. What’s Your Age? Unfortunately, most of us start thinking about retirement much later than we probably should. Starting early is ideal, but for many possible reasons, we might not be able to. For those who are young and have foresight, however, a comfortable retirement may be possible so long as you start early and accumulate your superannuation gradually throughout your working years. As a general rule of thumb, to live a comfortable retirement, shoot for the following milestones by age:
How to “Catch Up” if You’re Feeling Behind Don’t feel too guilty or be too hard on yourself if you haven’t got half a million stacked away in your super. Not all of us feel ready for retirement, financially, and of course, this can be worrying. You may be able to make changes to your lifestyle to save more. Consider things like sacrificing your salary and maximising after-tax contributions, consolidating your super accounts, and making changes to your accommodations, lifestyle, and discretionary spending and work out a realistic budget. This is best done with the assistance of a trustworthy wealth management firm such as Davlin Wealth Management. Davlin Wealth Management Save for retirement with professional consultations from Davlin Wealth Management. Comments are closed.
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