By understanding how much superannuation you need to retire, you can start planning what strategies you need to implement to help you get there. Here are some simple tips and recommendations to get you started. It’s never too soon to start planning for a better financial future.
Estimate how much superannuation you’ll have
You can easily check how much superannuation you have now but you’ll need to do a few calculations to figure out how much you’ll have when you retire, based on your current financial situation.
You can access the Money Smart calculator here.
Think about your retirement lifestyle
The amount of super you will need in retirement depends on the lifestyle that you desire. You might be thinking about travel plans, renovating or making a sea change. It is important to consider the lifestyle that you desire so that you can plan accordingly.
Below is a The Association of Superannuation Funds of Australia’s (ASFA) estimate of how much money you are likely to need, depending on your retirement lifestyle.
If you have any significant costs that you are likely to incur during retirement, remember to take this into consideration. This may include travel costs, moving costs, medical costs or even costs required to renovate your home.
Creating a superannuation strategy
If you’re in a position where you need to be saving more for your retirement, there a plenty of ways that you can get ahead now. You may choose to make super contributions or consolidate your super into one account. Start planning as early as possible so that you’re getting ahead and feeling confident in reaching your financial goals. Seeking advice from a Financial Planner will help you understand the best options for your individual circumstances. Click here to learn more about APS Financial Planning and other financial services.