Wealth Connexion outlines how much super you need before settling into retirement.
In order to enjoy a comfortable retirement, many Australians rely on saving money in a super account, with the aim of living off this fund once you stop working. This poses the question for many Australians contributing super: how much money do you actually need in your super account to retire? As experienced financial planners in Brisbane, we outline the considerations you need to make when determining how much super you need to retire.
How much super do I need to retire?
According to the Association of Superannuation Funds of Australia’s Retirement Standard, individuals will need $595,000 in their super, and couples will need $690,000 in order to retire ‘comfortably’. However, the amount of super you will personally need depends on a number of factors, including the standard of living you want to achieve in your retirement.
How much super should I have at my age?
The amount of super you should have accumulated at your age varies, and depends on factors such as your income, retirement goals and desired lifestyle.
As a generalisation, see below for the super balance you should aim for at each age:
• 25 years old – $18,500
• 30 years old – $59,000
• 35 years old – $101,500
• 40 years old – $156,000
• 45 years old – $213,000
• 50 years old – $281,000
• 55 years old – $361,000
• 60 years old – $453,000
• 65 years old – $549,000
How can I grow my super?
To get the most out of your super, you can take advantage of salary sacrificing and contribute what you can afford. Furthermore, you should regularly review your superannuation fund’s performance and fees, and consider switching to a fund with better returns if necessary. It’s important to keep a long-term perspective and avoid making impulse investment decisions. For more personalised advice, we recommend contacting Wealth Connexion – your expert financial planners in Brisbane.
Calculate your super
The Australian Government has created a calculator to help individuals calculate how much super they need to retire, based on their current financial position. This tool also estimates how much money you will have to spend each year once you retire, and how fees, investment options and contributions will affect your retirement income. You can access this tool by clicking here.
Get expert advice
If you want expert advice on how you can maximise your super to build the retirement you want, contact Wealth Connexion today. We are your first choice for reputable financial planners in Brisbane.
