How much will I need in super?

You may come across a variety of figures about how much superannuation you need for a rewarding retirement. The key issue to consider is what sort of retirement you want.

How much?

There is no shortage of reports produced discussing how much Australians need to have in super to have an enjoyable retirement. This information may make you wonder about the adequacy of your own super savings.  

However retirement isn’t a one-size-fits-all life stage.

We each have different goals

We all have our own plans for retirement as well as varying life expectancies and different financial resources to draw on. For some people, a significant amount of money may be needed to fund their ideal retirement. Others will be able to achieve their retirement dreams with far less.

The key step for all of us is to find our personal retirement ‘number’.

Consider your plans

A useful starting point is to consider your plans for retirement and the annual income needed to fulfil these goals. 

The way your superannuation is invested matters too. It can be tempting to focus on cash-based investments providing protection from volatile asset markets. But without some exposure to growth assets like shares, you could be forced to draw on your capital sooner rather than later.

Could you be eligible for the Australian age pension?

Bear in mind that few Australians rely solely on super to fund their retirement; many hold investments outside of super; many have significant equity invested in their home. At present, around 80% of older Australians are eligible for some level of Australian age pension payments1.

Know what's right for you

The bottom line is that there is no universal level of super that is right for everyone. The important thing is to speak with your Adviser to determine the figure that is right for your needs.

Once you know that number, it’s much easier to develop a plan of action to achieve your retirement goals.

Next: Boost your super

We explain the range of strategies you can use to help grow your super. Try just one or embrace them all to boost your super savings over time.

To learn more about how much superannuation you will need in retirement, contact us or speak to your financial adviser

Billions of dollars are sitting in lost and unclaimed super accounts. Some of that money could be yours. We explain how to be reunited with any lost super.
Consolidating your super means transferring multiple balances into a single super account. It makes it easier to keep track of your super savings and could see you save on account keeping fees.
Super is likely to be your second largest asset, after your home, which means there’s no better time to review your superannuation strategies than the end of financial year.

1National Commission of Audit, Towards Responsible Government, Feb 2014 -

This information is current as at 15/08/2016.

This information has been prepared without taking account of your personal objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation and needs.

This information provides an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such.