Retirement is something that we all work towards, with the end goal of our working careers being to amass enough savings to live comfortably for the rest of our lives without working. But how big should your retirement savings be to ensure this comfortable lifestyle? It is important to calculate in advance how much savings is enough for retirement and what steps to take to achieve this amount, as reaching retirement age without the necessary savings may prove disastrous. While the world of finance is shifting every day, building a suitable nest egg for your retirement plans remains a winning strategy.
If you are seeking expert wealth management solutions, give Astute Brisbane Central a call on 1300 761 957 or get in touch via our online form.
How Much Savings is Enough for Retirement?
According to the Association of Superannuation Funds of Australia (ASFA), it is recommended that those looking to retire at age 67 should save a total of $595,000 to achieve a comfortable retirement. This figure rises to $690,000 for couples, while it lowers if you are striving for a more modest retirement. While this is a lot of money, there are steps one can take to ensure their retirement savings build over time and reach their desired amount.
How to Calculate Your Required Savings
If you are getting to the stage where you are considering retirement, it’s important to ensure you have enough money saved, both through your personal finances and your superannuation, to support your ideal retirement lifestyle. A rule of thumb when it comes to determining your required retirement savings is to calculate what two-thirds of your pre-retirement income is, as this sum will often be enough to maintain your current standard of living. This number changes depending on the retirement lifestyle expectations, as any hobbies or holidays you wish to partake in may cause your required savings to increase. The age you wish to retire by is also an important factor when determining how much savings is enough for retirement.
What Steps Can I Take to Increase My Savings?
Once you have a goal sum in mind, it becomes easier to save towards the required amount. It is never too soon to start saving for retirement, and the sooner you get started, the sooner your wealth will start growing. An easy way to start is to make a salary sacrifice, where your salary is reduced, with the reduced amount being placed into your super or pension fund instead. This also provides significant tax advantages. You may also seek to improve your net wealth by investing in financial assets, such as the stock market. Selling off assets and properties is another way to significantly increase your savings, especially if you are looking to move out of your home once you retire.
Can I Get Help with Building My Retirement Savings?
Yes, you can. At Astute Brisbane Central we have been helping Australians with their finances for decades, offering expert advice tailored to your unique situation. Rather than bogging you down with unwieldy financial terms, we provide simple, straightforward solutions for improving your financial situation. Come to us with your retirement plans and we will sit down with you to discuss the amount you need to retire comfortably along with how you can save for the indicated sum.
The concept of retirement can be daunting, but our financial experts are here to make the journey and the transition as easy and as comfortable as possible.
Chat to Astute Brisbane Central Today
Whether you need aged care advice or financial solutions, Astute Brisbane Central is here to get you on top of your money. Our specialists are ready and available to help you achieve your financial goals and provide you with advice on everything from insurance to lending. To get started with Astute Brisbane Central, give us a call on 1300 761 957 or reach out through our online form.
Disclaimer
This information has been provided as general advice. We have not considered your financial circumstances, needs or objectives. You should consider the appropriateness of the advice. You should obtain and consider the relevant Product Disclosure Statement (PDS) and seek the assistance of an authorised financial adviser before making any decision regarding any products or strategies mentioned in this communication.
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