Inside or Outside Super? Strategies for High Net Worth Investors
In life, change is the constant. Our personal circumstances change, unexpected surprises crop up and our priorities shif...
The Australian Financial Review has recently published the article 'Do you actually need $1m to retire?' with the view point that not everyone needs $1m to retire.
While you might not need $1 m to retire, here’s why I advocate that you should plan on having more than $1m by retirement.
The numbers from Super Consumers Australia state that if you are a couple who want to spend $81,000 per annum in retirement then you would need around $1m in savings at age 65 on top of your income from Age Pension.
Here’s three reasons why you should have more than $1 Million at retirement:
The article also refers to a single retiree only needing $88,000 in savings if you want to retire on $34,000 per annum. The single Age Pension amount is currently $25,359 per annum, inferring that the difference of $8,641 per annum is drawn from savings. The Account Based Pension Calculator at moneysmart shows if you received $8,641 per annum from $88,000, even earning 6.5% per annum, you would run out of super by age 76. After that you are totally reliant on the Age Pension.
The best plan is to work out what retirement looks like for you and then plan to fully fund that. If you are 10 years or less from retirement now is the time to act!
For more information on this topic, watch my video 'How much Super do I need when I retire?' through the link below.
Please feel free to contact me, or give our Wealth Management team a call on (07) 4154 0400 to talk about your retirement.
Source:
https://moneysmart.gov.au/retirement-income/account-based-pension-calculator
https://www.superconsumers.com.au/retirement-targets
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