Retiring at 65 is a milestone that many people aspire to. It is important to consider the amount of superannuation required to meet your retirement goals. Superannuation is a form of long-term investment that can be used to fund your retirement lifestyle. By understanding how much super you need to retire at 65, you can better plan for your retirement.
Calculating Target Retirement Savings
The amount of super required to retire at 65 is based on your individual circumstances. Factors such as your age, current income, and desired lifestyle in retirement will all determine your target retirement savings.
Your age will determine how much time you have to save for retirement. The younger you are when you start saving, the more time you will have for your super to grow.
Your current income will also affect how much super you need to retire at 65. If you are earning a higher income, you will likely need to save more for retirement. Conversely, if you are earning a lower income, you will likely need to save less.
Finally, your desired lifestyle in retirement will affect how much super you need. If you plan on living a comfortable lifestyle in retirement, you will need to save more than if you plan on living a more modest lifestyle.
How Much Super Do I Need?
Once you have taken into account your age, current income, and desired lifestyle in retirement, you can begin to calculate how much super you need to retire at 65.
Generally speaking, it is recommended that you aim to have enough super to provide you with an income of at least 70% of your pre-retirement income. This will ensure that you can maintain your desired lifestyle in retirement.
It is also important to consider other sources of retirement income, such as the Age Pension. You may be eligible for the Age Pension, depending on your income and assets. This can help to reduce the amount of super you need to retire at 65.
Finally, it is important to ensure that you start saving for retirement as early as possible. The longer you have to save, the more time your super will have to grow.
Retiring at 65 is an important milestone, and it is important to consider how much super you need to achieve it. It is important to take into account your age, current income, and desired lifestyle in retirement when calculating your target retirement savings. By understanding how much super you need to retire at 65, you can better plan for your retirement.
Retirement is something that most people dream of and plan for their entire working lives. While it may be months or years away, calculating how much superannuation you’ll need to retire comfortably is vital to achieving your goal.
It is important to note that the amount of superannuation you will need to retire comfortably is based on various factors such as lifestyle choices, desired retirement lifestyle, and age.
For example, if you want to maintain your current lifestyle in retirement, you will need to factor in the cost of housing, food, transport, health and leisure. According to the Department of Social Services, the average couple in retirement requires approximately $58,128 dollars a year to live comfortably, and this figure rises as you age.
It is also important to note that the amount of superannuation you will need in the future depends on the returns your investments generate. While the annual return rate may vary, this figure can reach as high as 8.5%. If you plan to retire when you are 65, then it is best to begin saving as soon as possible to ensure that you have enough superannuation by the time you retire.
According to Mercer, the amount of superannuation you will need to retire at 65 is determined by the lifestyle choices you make and the level of investment returns you expect. In addition to this, it is important to factor in inflation, as the prices of goods and services may rise over the years.
Saving for the future is an important step in achieving financial freedom. It is important to plan ahead and work out how much superannuation you’ll need to retire comfortably. By understanding how much super you need to retire at 65, you can take the appropriate steps to start planning for your retirement today.
