How much super do I need?
It’s a difficult question to answer and will depend on the type of lifestyle that you’d like to have, and lifestyle is a very personal thing because everyone is different.
To work out how much super you'll need to enjoy the type of retirement you want, we’ve put together a few questions to ask yourself:
- what sort of retirement do I want?
- what do I need to budget for?
- what can I live without?
- how much do I have invested already?
- do I have time to boost my super?
- when do I plan to retire?
How long will I live and how much will I need?
Based on the ASFA / Westpac retirement income study, people need around 60 per cent of their current annual income in retirement. So if you're earning $50,000 now, you'll need around $30,000 as your retirement income.
It is estimated that you will need approximately $300,000 upon retirement in order to enjoy an average standard of living.
Currently, the life expectancy for Australian males is 84 years and 88 for females. So if you plan to retire at 65, your retirement savings will need to last you around 20 years if you're male and longer if you're female.
Modest vs comfortable lifestyle
The ASFA Retirement Standard provides a guide showing the difference between a modest and comfortable lifestyle.
This is broken down into various areas such as household related expenses, food, health, transport, clothing and leisure.