Admit it, most of us spend time planning our next holiday or dreaming of that shopping spree, not thinking about how we’re going to fund our retirement.

Have a think about it now, what kind of retirement are you planning for – a nice moderate lifestyle or something a little more luxurious?

ASFA reports on living costs for singles and couples, and recognises two lifestyles – modest and comfortable – and what each one costs.

A modest lifestyle allows a retiree to pay for the basics, and only a little more than would be possible on the government’s Age Pension. There’s no money for overseas travel, and both home entertaining and dining out are very limited. Private health insurance is beyond this budget.

A comfortable lifestyle allows for fortnightly entertaining at home, a glass of wine a day and eating out three times a week at a club restaurant, or once a week at a more expensive place. Private health insurance and an overseas, as well as a local, holiday each year are also possible.

Which brings us to the next question – how much money might I need to save for retirement?
The tables below show the amount of money you might need at retirement based on differing retirement ages and annual incomes.

How much do you need to retire if you’re single?

Retire at age…

Budget p.a.
(net of tax)
60 65 67
Modest
$30,000 p.a
$270,000 $160,000 $150,000
Comfortable
$40,000 p.a
$485,000 $370,000 $338,000

How much do you need to retire if you’re a couple?

Retire at age…

Budget p.a.
(net of tax)
60 65 67
Modest
$40,000 p.a
$303,000 $153,000 $144,000
Comfortable
$55,000 p.a
$592,500 $450,000 $420,000

 

**This information is illustrative only as it is based on a number of assumptions that may not be relevant to you. You should seek professional advice before making a financial decision based on this illustration.

Our calculators are an excellent guide to see how your super is tracking. The 60 Second Projector shows how your super is growing and the approximate balance that you’ll have at retirement if you continue to earn your current income. The add $ calculatordemonstrates how adding some extra dollars to your super can really impact your final balance at retirement.

If you would like to discuss your financial situation and goals in more depth, you can also speak to an NGS financial planner. Every NGS Super member is entitled to a free initial consultation. If you would like to make an appointment, please call 1300 133 177.

Information provided in this blog may have changed since the time of writing. You should confirm the information is current before relying on it.