Your Super - Your Future
According to a recent retirement survey conducted in Australia, 1 in 2 Australians don't feel confident about retiring, and 23% of those people have said that they will have to work for longer because of the super they have accessed during this COVID-19 period. Treasurer Josh Frydenberg has forecast that up to $42 billion in superannuation will be accessed prematurely by Australians before the end of the year, due to the pandemic. To date, 560,000 Australians have completely cleaned out their superannuation accounts, 460,000 of those people being under 35, according to Industry Super Australia chairman, Greg Combet.
When it comes to superannuation, many Australians are aware that retiring with enough money to continue living their desired lifestyle isn't a circumstance that will come about just through working alone. The unfortunate reality is that many people underestimate how much super they will need to uphold a comfortable and enjoyable lifestyle during retirement.
Yes, you must consider how much you will need, but what we really encourage you to consider is how much you want for your retirement years. Do you want to continue living the type of lifestyle you have lived throughout your working years? Would you be happy to live more frugally, without holidays and all of the extras? Or do you want the last chapters of your life to be generous and enjoyable, with a sense of freedom that you may not have experienced while working 5 days a week?
A study by the World Economic Forum has revealed that most Australians will outlive their super by 11 years showing us that innovative super strategies are being called for. For a comfortable future, we all need a comprehensive and detailed financial plan.
Superannuation Benchmarks
The Association of Superannuation Funds Australia has outlined the following benchmarks for retiring comfortably. At each of these age brackets, they suggest you have the following amount of money in your super:
30 years old - $61,000
40 years old - $154,000
50 years old - $271,000
60 years old - $430,000
67 years old - $545,000 (singles) & $640,000 (couples)
Are you on track to retire?
Many of us are not on track, and if you do fall short in the categories above, don't stress. We're here to remind you that living the best years of your life through retirement is not out of reach - it just takes implementing accurate and effective strategies today, so that you can reap the benefits when your working years come to an end. We are committed to providing tailored, long-term, and tax-effective strategies to assist Australians in creating a stable path to retirement.