New report reveals huge amount of super needed to retire
Australians will need nearly $600,000 in their superannuation to retire comfortably, according to a new report.
The Association of Superannuation Funds (ASFA) Retirement Standard report found that home-owning singles would need $595,000 to retire at 67 with a “comfortable” lifestyle, while a home-owning couple in relatively good health would need $690,000.
This means that home-owning couples would need $73,337 per year while home-owning singles would need $52,085 for a comfortable lifestyle.
Their analysis also found that for a more modest lifestyle, a superannuation balance of $100,000 is needed for both singles or couples.
Both budgets assume the retirees own their homes and are relatively healthy.
On Wednesday, financial commentator Betsy Westcott told Sunrise that Aussies needed to start thinking about retirement earlier to make the most of their savings.
“The longer that you contribute to super and pay attention it to it, the less you have to do to create that really golden retirement because age is your superpower,” Westcott said.
“If you’re not paying attention to your super, which, let’s be honest, most of us aren’t, you could be missing out on some really big gains (to the overall balance).”
She added that most people retired closer to 65 than 67 and ended up with a lot less superannuation than the benchmark.
While the ASFA retirement standard took into account “everyday spending,” Wescott said it did not factor in expenses like helping children buy a home, or buying into a retirement village.
She also stressed that these benchmarks were just a guide saying: "Personal finance is just that, it is personal.”
“Your idea of a golden retirement will look different to your neighbour’s, your cousin’s, your best friend’s."
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