Current Superannuation (Retirement) Savings We have however ‘modified’ the numbers to take advantage of the $25,000 tax concession. The percent of income invested we have assumed 9.5% which is the current compulsory superannuation contribution for employed Australians. Or you could look at it as being able to contribute $24,700 per annum to super until age 60. The annual income increase box can move the needle substantially as it will adjust the superannuation contribution of which we Australians are limited to keep things easy to follow, we’ve assumed no pay rises until retirement. Thus we have used an annual income of $260,000 as $260,000 x 9.5% = $24,700 contribution to super each year. In Australia all individuals are entitled to a $25,000 superannuation contribution limit and a compulsory 9.5% from your employer. Its really only used to calculate the contributions to super in percentage terms. This one doesn’t make as much of a difference as you think. Gareth went with 90 as the target life expectancy. Living in Australia, the official stats say the life expectancy is 82.50 so I can only assume that I should have a high chance of hitting that. For me, I have a fairly non physical job, not really at any risk of dying on the job unless my keyboard and my grandparents lived to 90+. This one is really important as it moves the needle a lot. Gareth is 35 so the scenario is based on him. This one is fairly obvious and the sooner you start thinking about your retirement, the easier it will be to look at Superannuation investment opportunities. Understanding the numbers pre retirement Current Age Summary – Start a Self Managed Super Fund today.Scenario #4 – Sitting your funds in cash.Understanding the numbers post retirement.Current Superannuation (Retirement) Savings.Understanding the numbers pre retirement.Only taking part in no cost or very low cost leisure activities. One leisure activity infrequently, some trips to the cinema or the like Take part in a range of regular leisure activities No car or, if you have a car it will be a struggle to afford repairs One holiday in Australia or a few short breaksĮven shorter breaks or day trips in your own cityīasic private health insurance, limited gap payments Limited talk and text, modest internet data allowanceĭomestic and occasional overseas holidays Only club special meals or inexpensive takeawayįast internet connection, big data allowance and large talk and text allowance Take out and occasional cheap restaurants Restaurant dining, good range & quality of food Less frequent hair cuts or getting a friend to cut your hair Limited number of household items and appliances and budget haircuts No budget to fix home problems like leaky roofīetter quality and larger number of household items and appliances and higher cost hairdressing Can do repairs, but can't replace kitchen or bathroom Replace kitchen and bathroom over 20 years The table shows the expected lifestyles for a comfortable retirement, modest retirement and retirement relying on the Age Pension alone. Learn more about the ASFA Retirement StandardĪSFA has produced the below table 1,3 for retirees aged around 67. On a weekly basis, a single person needs around $842.84 while a couple needs around $1,170.64 for a comfortable retirement. ASFA Retirement Standard for people aged 85 and older Living standard Here are the estimated budgets for various households and living standards for people aged around 85 2. On a weekly basis, a single person needs around $907.71 while a couple needs around $1,278.26 for a comfortable retirement. ASFA Retirement Standard for people aged between 65 and 84 Living standard A ‘comfortable’ retirement - which represents a good standard of living with enough to spend on a range of leisure activities and household goods, private health insurance, a reasonable car, good clothes, a range of electronic equipment and some travelīased on ASFA research 1, here are the estimated budgets for various households and living standards for people aged around 67.A ‘modest’ retirement - which is better than relying on the Commonwealth Government Age Pension alone, but only allows for fairly basic activities.The Association of Superannuation Funds of Australia (ASFA) reports regularly on the annual cost for singles and couples to achieve either: The cost of a moderate or comfortable retirement
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