Even if retirement feels a long time away, it’s important to start thinking about when you’d like to retire and the type of lifestyle you want in retirement.
How much might you need to retire?
The CommBank Retire Ready Index is a comprehensive analysis of Australians’ retirement savings and resulting retirement incomes.
It sets out the percentage of the population aged 25-64 who are projected to have sufficient assets, including superannuation, personal wealth and Age Pension entitlements, to meet a 'comfortable' level of retirement.
The Association of Superannuation Funds Australia (ASFA) describes a ‘comfortable’ retirement as one where you can renovate your house, buy a new car and eat out regularly, as well as take an annual holiday.
It calculates that a single person would need around $43,000 a year in annual income, or $60,000 for a couple, to afford this lifestyle in retirement.
The gender gap
While one in two Australian households are expected to be retire ready, the gap widens when you compare males and females.
About 31% of single males are expected to be retire ready compared with 22% of single females1.
Factors for the discrepancy include disrupted working patterns, the pay gap and the need for women to hold more assets and make their income last longer because of their longer life expectancy.
Tips that might help
- Salary sacrificing might be an option
- Bringing all your super together into one fund can help to manage fees that you might be paying
- Our retirement calculator helps you to estimate how much money you may need and how much you may have when you retire in just a few easy steps
- Develop a retirement plan and talk to a financial planner about your retirement goals
- Revise your household budget to see if there is any spare cash to possibly put away for retirement, using CommBank’s budget planner tool
- Check the Australian Taxation Office (ATO) website for details about the latest contributions caps
- Consider making an appointment to talk to a Commonwealth Financial Planner on how the changes to superannuation on 1 July 2017 might affect your retirement.
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1Source: CommBank Retire Ready Index.