You may dream about overseas holidays, home renovations or simply spending more time with your friends and family in retirement. However, the reality is that many people’s savings are unlikely to match their retirement expectations.
What about the age pension and your compulsory contributions?
If you’re relying on the age pension and, like most of us, are planning on a comfortable lifestyle in retirement, you’ll likely have a gap of approximately $400 per week2. And, if you think you can count on the contributions your employer makes – think again as this is unlikely to reach the amount you’d need to save.
So how much would you need to save?
That’s the big question and it’s complex. The latest figures suggest that if you’re aiming for a comfortable lifestyle in retirement you’ll need to save about $640,000 for a couple or $545,000 for a single person3. It would be even more if you don’t own your home at retirement or if you want to enjoy some of the finer things in life.
How do you know if you have a gap?
Use the retirement gap calculator and in less than five minutes you’ll be able to see if your means support your dreams.
I have a retirement gap – what now?
The good news is that there are steps you can take today to close the gap and ensure you have the retirement you always wanted.
Contact your Financial Adviser for further information.
2 Based on a comparison of the ASFA retirement standard and the current maximum age pension rates for a single person as at 1 January 2017.
3 ASFA Retirement Standard – 1 January 2017