31 August 2023
The amount you will need to save for your retirement depends on the type of lifestyle you want. There is a lot to think about, but there is plenty of help and guidance available.
A good place to start is the Association of Superannuation Funds of Australia’s (ASFA) Retirement Standard. This is an analysis of the annual budget needed by Australians to fund either a comfortable or modest standard of living.
ASFA’s definition of these retirement lifestyles are:
ASFA updates its Retirement Standard every quarter, showing the annual budget needed for single people and couples aged 65-84 years, and around 85 years.
The table below shows ASFA’s analysis of budgets needed to retire modestly and comfortably (as at June 2023).
|Household type||Annual income required for modest retirement||Annual income required for comfortable retirement|
|Aged 65-84 years|
|Aged around 85 years|
ASFA’s figures assume that the retirees own their own home outright and are relatively healthy. Other assumptions made in its research are explained on the ASFA website.
To see whether you are on track to achieve your preferred level of retirement, you can use Brighter Super's retirement income calculator. This can help you estimate your superannuation balance and income for the age at which you choose to retire, adjusted for inflation.
Using this calculator can help you to plan how much to contribute, when to retire, the fees you pay, and how your superannuation will be invested.
You can also calculate your possible retirement income depending on other personal circumstances, including the amount and frequency of regular pension payments as well as any Government Age Pension you may be entitled to receive.
If these calculations show that you are short of where you want to be, you can act today to grow your superannuation for the future.
There are various ways to grow your superannuation. These include before-tax (concessional) contributions such as salary sacrifice, after-tax (non-concessional) contributions from your take-home pay, spouse contributions, and downsizer contributions.
You should consider your contributions limit (cap) for both before-tax and after-tax contributions. While there may be some tax concessions for putting money into superannuation, if you exceed your limit, you could pay extra tax.
Find out more in our Contribution limits info sheet.
Financial advice can help you create a plan to achieve your financial and lifestyle goals.
If you already have a financial adviser, they can help you make informed decisions about your Pension account.
If you do not have a financial adviser, Brighter Super’s team of in-house financial advisers are here to help you1. Types of financial advice include limited advice on a single issue, scaled advice for retirement planning, and comprehensive advice.
Find out more about financial advice.
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This article contains information that is up to date at the time of publishing. Some of the information may change following its release. Any questions can be referred to Brighter Super by calling us on 1800 444 396 or by emailing us at email@example.com.