![]() ![]() Naturally, if you want expert help to balance the factors mentioned above, and guidance on the disciplines to save more or invest differently, talk to a financial adviser. One that gets you to the retirement lifestyle you’ve dreamed of and helps to make sure you don’t run out of money. In short, using a retirement calculator gives you an in-depth view of how much you can save for retirement and what that turns into as a regular income.īecause it integrates so many factors, you can look at the changes that might make the most difference whether that’s your investment approach, contributions strategy, pension eligibility or contribution from your spouse.įrom this knowledge comes the power to create a personalised super strategy. The forecaster helps estimate the effect any Age Pension you are eligible for (and any work you do) has on your retirement income. Social Security and part-time work are two crucial ways in which many people at least partially fund their retirement.A retirement calculator allows you to build your spouse’s income, contributions and final super balance into the calculation. Increasing the return on your super savings can make a big difference to the amount of capital you retire with and your retirement lifestyle when you get there. It takes into account how much you’ve currently saved and your future saving based on income and your ability to save extra money into super. Your current and potential super savings.This can be greater than household income after income tax where there is a drawdown on capital over the period of retirement.Ī modest retirement lifestyle would be one that’s slightly better than you’d enjoy on the Age Pension.Ī comfortable retirement lifestyle includes a better standard of living (including better consumer goods) and more recreational activities.Ĭalculating how much you’ll need to support this lifestyleĪSFA’s figures give us a good starting point, a sense of what the average retirement might look like and what it would cost.īut what’s more important, is how much capital you need to support the lifestyle you want – and how you can go about accumulating that capital.Ī retirement calculator can help you answer all these questions because it covers a whole range of factors. The figures in each case assume that the retiree(s) own their own home and relate to expenditure by the household. According to their research 1, updated quarterly, this is what you need to live at two different levels in retirement: ![]() The Association of Superannuation Funds of Australia (ASFA) gives us a general guide. Once you’ve decided on your retirement lifestyle, you can work through the likely cost of your expenses, where your retirement income will come from, and finally – “how much do I need to live the life I want in retirement?” The Association of Superannuation Funds of Australia's guide What options would you like to have in relation to help and support either at home, or perhaps in a retirement village or aged care facility?.Do you intend on providing financial assistance to your family?.The types and frequency of any recreational activities.What are your accommodation plans in the future? Whether a sea change or tree change is part of your plan.How often you would like to travel and the types of holidays.Some of the things you might consider are: This may be hard to know if you’ve still got a while to go before retiring, but the sooner you start thinking about it, the sooner you can implement a plan to turn your retirement dreams into a reality. The starting point is having a clear idea of the type of retirement lifestyle you’re after. There are tools and strategies that can help you enjoy your retirement if you start preparing for it now. It can be complex – but it doesn’t have to be. There’s a whole host of factors that will determine your lifestyle in retirement – savings, tax, investment strategy and more. How can you make sure that doesn’t happen? You’ve spent decades working, so you don’t want to spend your retirement years scrimping for cash. A financial adviser can guide you in implementing strategies to save more and avoid running out of money.Retirement calculators can tell you how much capital you need to support the lifestyle you want.Start with a clear idea about the type of retirement lifestyle you're after. ![]()
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