If you’re thinking of retiring then congratulations, you are getting close to some serious ‘me’ time. The good news is that on average you have a longer life expectancy than your parents. Currently the life expectancy is 84 for males, and 88 for females. The not so good news is that if you’re reading this, then you may not have planned your retirement as best you could have. However do not despair, help is at hand…
Step one. Talk to a Financial Planner now. Not next year, not tomorrow, make an appointment today. Also ask yourself the following questions (which will be asked by your Financial Planner):
- What are your dreams and aspirations for retirement?
- When do you want to retire?
- Do you really want to retire now or do you just want to work less?
- How much money would you like to live on? (Be realistic)
- What assets, superannuation and retirement plans do you currently have in place?
To help you consider these questions here are some recent national figures to ponder:
In general terms, it has been determined that a couple looking to achieve a comfortable retirement spend around $52,000 a year, while those seeking a ‘modest’ retirement lifestyle spend at least $28,000 a year. (A modest retirement lifestyle being defined as being better than the Age Pension, but still only able to afford fairly basic activities. A comfortable retirement lifestyle is generally defined as being involved in a broad range of leisure and recreational activities and to have a good standard of living through the purchase of household goods, private health insurance, a reasonable car, good clothes, etc as well as domestic and occasional international holiday travel.)
An Australian Super Fund Association Survey, held this year revealed the following funds will be required in retirement for a modest lifestyle compared to a comfortable lifestyle and also the Centrelink pension.
| |
Couple |
Single |
| Comfortable |
$51,135 |
$38,070 |
| Modest |
$27,641 |
$19,640 |
| Centrelink |
$26,338 |
$17,469 |
*Information from Westpac ASFA Retirement Standard, current as at June 2009
Remember too, that your super and any age pension you are entitled to can only be accessed from a certain age. For most of us, this will influence when we retire.
The table below shows when you can access your super depending on when you were born.
| Date of Birth |
Age at which you can access your super |
| Before 1 July 1960 |
55 |
| 1 July 1960 - 30 June 1961 |
56 |
| 1 July 1961 - 30 June 1962 |
57 |
| 1 July 1962 - 30 June 1963 |
58 |
| 1 July 1963 - 30 June 1964 |
59 |
| 1 July 1964 or after |
60 |
For more information visit the Australian Taxation Office website.
If you want to know more about accessing your super, or help with working out your retirement goals, talk to a MyState Financial Planner today.