• Saving enough super

  • How much super is enough for retirement?

    Everyone has a different vision of their ideal retirement, so there's no one-size-fits-all answer to this question.

    To find how much you should aim for, work out:

    • What level of income you’d like in retirement and then
    • How many years you’re likely to be retired.

    Factors to take into account should include:

    • Your desired standard of living
    • Your lifestyle choices and
    • Whether any other sources of income in retirement may supplement your super.


    It's important to think about this as early as possible in your retirement planning so that you've got time to do something about it.

    Once you have your retirement goal in mind, find out some ways to boost your super and ensure you'll have a lasting retirement income.

  • A guide to retirement standards of living

    Few of us know exactly how much money we'll need to spend each year to fund our chosen lifestyle in retirement.

    To help overcome this problem, the Association of Superannuation Funds of Australia publishes the ASFA Retirement Standard. It's updated quarterly to reflect inflation, and provides detailed annual budgets so Australian couples and singles can see what they'd need to fund a comfortable or modest standard of living in the years after they stop working.

    • Comfortable lifestyle—Allows a healthy retiree to factor in a broader range of leisure activities: more enjoyment, comfort, style, travel, health insurance etc.
    • Modest lifestyle—Allows for basic activities, but little else.


    The most recent national figures released for the ASFA Retirement Standard are shown in the table below.

    Budgets for various households and living standards for those aged 65 - 85 (June Quarter 2016, national)

    Expenditure items

    Couple

    Single Female

    Comfortable lifestyle

    Modest lifestyle

    Comfortable lifestyle

    Modest lifestyle

    Housing

    $100.00

    $71.45

    $86.27

    $74.43

    Energy

    $56.15

    $54.18

    $41.40

    $40.80

    Food

    $198.13

    $159.61

    $110.07

    $77.05

    Communications

    $29.65

    $14.84

    $23.30

    $8.48

    Household goods and services

    $89.80

    $36.95

    $76.65

    $27.25

    Clothing and footwear

    $57.31

    $28.65

    $38.21

    $17.65

    Transport

    $138.53

    $93.81

    $135.94

    $91.22

    Health services

    $155.29

    $85.59

    $87.99

    $44.35

    Leisure

    $309.72

    $111.11

    $226.01

    $74.58

    Total weekly expenditure

    $1,134.58

    $656.20

    $825.84

    $455.81

    Total annual expenditure

    $59,160

    $34,216

    $43,062

    $23,767

    The figures in each case assume that the retiree(s) own their own home and relate to expenditure by the household. This can be greater than household income after income tax where there is a drawdown on capital over the period of retirement. Single calculations are based on female figures.
    Source: The Association of Superannuation Funds of Australia Ltd. For more details about the ASFA Retirement Standard, visit the ASFA website.

  • Check your current super situation

    Once you’ve thought about how much you’ll need in retirement, take a good look at your current super balance:


    If the answer's no, you’ll need to take steps to close the gap between your target and your actual savings.

    See below for some straight-forward ways to give your super a boost.

  • How to boost your super savings

    Even though employers are required to pay 9.5% of your salary into super, the reality is that these contributions alone may not be enough.

    Also, retiring before you qualify for any Age Pension or reach your preservation age, may require more super savings to fund your longer life in retirement.

    If you can, the best way to ensure you'll have enough retirement funds is to start your own super savings plan early. This allows you to benefit most from the power of compounding returns.

    But even if time's not on your side and you'll be retiring soon, it's never to late to look at other ways of increasing your balance.

    • Make regular salary sacrifice (before-tax) contributions—arrange this with your employer
    • Make additional after-tax contributions when you can
    • Find any lost super and consolidate it into your Australian Catholic Superannuation account
    • Review your investment options in order to maximise expected returns; and
    • Take advantage of Government incentives like the co-contribution payment and low income super contribution, if you're eligible.


    Don't forget to regularly check how your savings are going! Simply login to Members online to review your account balance and member statements.

  • Example of how to achieve a comfortable retirement

    See Kay and Dean’s example below and learn how they’re working to achieve their dream retirement.

    Then use our Super projection calculator to assess your own financial situation and find out:

    • How much you might be able to save for your retirement
    • Your level of income when you’re retired
    • How long you can expect your retirement savings to last.

  • The importance of planning

    Because there are so many things to think about when planning for retirement, like investment options, taxation, pension income, eligibility for government benefits and more, getting some expert financial advice is a smart move.

    If you've decided it's time to take control of your finances, we're here to help you build, manage and protect your wealth.

    Learn more about the different financial planning services we offer so you can decide which one is right for you.

    Call us on 1300 658 776 if you have questions, or to make a financial planning appointment.

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