Calculator: How much money do you really need to retire comfortably?

You could retire at any time and any age in Australia, as long as you have sufficient regular income to support your lifestyle. Most Aussies receive their retirement income from either investment, age pension from Centrelink, or a combination of both. Here are some interesting figures about retirement in Australia that you might not know: […]

You could retire at any time and any age in Australia, as long as you have sufficient regular income to support your lifestyle.

Most Aussies receive their retirement income from either investment, age pension from Centrelink, or a combination of both.

Here are some interesting figures about retirement in Australia that you might not know:

  • You need to pass a series of stringent tests to be eligible for the government age pension after your 67th birthday (for most Australians), and the pension is maxed at $1,423.60 pf (the equivalent of $37,013.60 pa) for a non-homeowner couple (Source: Services Australia). Most people feel that the government age pension is nowhere near enough to fund a “comfortable” lifestyle.
  • Average superannuation balances at the time of retirement (assumed to be age 60 to 64) in 2015-16 were $270,710 for men and $157,050 for women (Source: The Association of Superannuation Funds of Australia Limited (ASFA)). If there was no investment movement and assuming you need $60,000 pa to retire comfortably, the superannuation fund balance will become $0 in less than 5 years for men and less than 3 years for women.
  • The average life expectancy in Australia has increased by almost 20% during the past 50 years in Australia (Source: WorldBank), so you may have more years to support yourself and your family than the previous generations. The aging population also means taxpayers have to work harder to fund the current pension system, but might not have the same amount of benefits when they retire because the dollars in the age pension “pool” are shrinking.

 

Is there a better way to do retirement since the government pension doesn’t look so glamourous?

Yes!!

And that is by building investment assets outside of your family home, both inside and outside of your superannuation fund, to reduce your reliance on the government pension.

 

You can use this simple, 7-question calculator to work out your ultimate retirement question:

How much is enough?

retirement goal calculator

Discover your Financial IQ and what it means for your future.

Take our short, 5-question quiz to discover how your Financial IQ will impact your future…

Discover how to be prepared financially for any unexpected events that life can throw at you

Spot the hidden “money traps” that are destroying your financial security

Learn how to improve your monthly cash flow without getting a raise

In 10 years, a $1000 savings account with a 2% annual interest will have:

A
B
C

A house worth $1,000,000 with an $800,000 mortgage is:

A
B
C

How do you think the age pension from the government will change over time:

A
B
C

Insurance is:

A
B
C

In one year, the value of a savings account with 1.5% annual interest and a 3% inflation rate will:

A
B
C
Post thumbnail

AIA Vitality program changes (updated Nov 2020)

About AIA Vitality It’s hard to beat feeling healthy. That’s why AIA Vitality provides online and offline health assessments, and exciting rewards to keep you motivated along your wellness journey. With AIA Vitality, the more the effort you put towards improving your current state of health in areas such as mental wellbeing, exercise and nutrition, […]

Post thumbnail

Investment Outcome Calculator

Have you ever wondered how an investment snowball? Use this calculator to find out! Start with an investment amount, add in a monthly contribution plan, nominate an interest rate and timeframe, and let it roll!

Post thumbnail

Why Invest in Gold?

Gold has a rich history. Long before paper money and credit cards, gold was used as a form of currency and a symbol of wealth. The first use of gold as currency occurred in the late 8th century BCE. We’re in the 21st century, and the yellow metal still plays a vital role in the […]

Post thumbnail

Calculator: How much money do you really need to retire comfortably?

You could retire at any time and any age in Australia, as long as you have sufficient regular income to support your lifestyle. Most Aussies receive their retirement income from either investment, age pension from Centrelink, or a combination of both. Here are some interesting figures about retirement in Australia that you might not know: […]

Post thumbnail

50 Things: What a Professional Financial Advisor Does for You

By Larry R. Frank Sr, MBA, CFP® Registered Investment Adviser (CA) Better Financial Education      FINANCIAL PLANNING Cares more about you and your money than anyone who doesn’t share your last name. Guides you to think about areas of your financial life you may not have considered. Formalizes your goals and puts them in writing.

Post thumbnail

Guest publication in “Ask an Adviser” May 2020 edition

I get asked to write for Adviser Ratings in the “Ask an Adviser” section from to time to time, where anyone can ask a question and I will be answering them. This one was a question asked by a Kate from Fremantle about the positives of a pandemic. The original article was published here. As […]