How Much Money Should You Have In Your Superannuation By Age - Courier Mail

04 Jan 2021

Hey Everyone Zoran here,

I just wanted to share with you a great article I found on Courier Mail discussing Superannuation balances.

Kathy Skantzos writes,” There is a “massive” gap between the amount we need to have stashed away and what we have.”

Personally I look at Super as the cherry on the cake so to speak, designed to assist you in later life and complement your other “out of Super” investments. Superannuation will likely make up a large portion of your retirement income and this article shares some scary stats in relation to how much super the average Australian has stored away.

Here are a few extracts from the article:

THE MAJORITY OF AUSTRALIANS ARE FALLING SHORT IN THEIR SUPERANNUATION SAVINGS, WHICH COULD LEAVE THEM IN A DIRE SITUATION WHEN IT COMES TIME TO RETIRE.

Recent Canstar research suggests 30-year-old men and women would need to have around $61,000 in their super account today to be on track for a comfortable retirement lifestyle, but on average, they are currently short between $35,000 and $39,000.

The table provided estimates how much super people of different ages “should” have in their super today to be able to afford a “comfortable” retirement. This outlines the gap between the balance required and the average balance.

But its important to note that these figures aren’t talking about having a retirement life of luxury, it actually also assumes that you have purchased your own home and own it outright! 

In the article Mr Mickenbecker says “A comfortable retirement means holidays and dining out, not yachts and fine wine, and the number assumes you’re living in your own home without a mortgage,”

Some suggestions in the article include topping up your super with additional contributions, with some saying that you should aim to put around 10% of what you earn into super to build up that nest egg.

HOW MUCH YOU NEED

in the article, Ms Stoykov pointed out that the reason superannuation was created was “so people could have a good life in retirement”.

“The average couple need around $40,000 and a single needs $28,000. But that’s modest. It’s very hard to live on $28,000 a year,” she explained.

“To be comfortable you need around $42,000 a year as a single or $62,000 for couples.”

But she said that’s assuming you own your own home and don’t have a mortgage lingering over your head.

“If you don’t own your own home, it’s going to be a lot harder to live a comfortable life,” Ms Stoykov said.

“If comfortable is $62,000 a year as a couple and you’re 65 and want to live until you’re 85, which is not out of the question, that’s 20 years of $62,000 you have to find. That’s $1.2 million,” she explained.

 

Here at Hot Property Buyers Agency we suggest that working with an independent financial planner is a key part to your long term success and future planning, the team at Hot Property are not financial planners so see your own advice thats tailored for your situation. if you would like to speak to one of our usual providers drop our team an email to enquiry@hpsba.com.au

To read the full article follow the link below:

Link to Article 


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