What is required for a comfortable retirement? A new take on convincing us that our super might be enough
The expression that ‘more is never enough’ doesn’t help most of us face the realities of retirement and superannuation but perhaps some new figures will give hope.
You may have recently heard we need at least $1 million in our super accounts to fund a ‘comfortable retirement’ but thankfully according to some experts that’s all wrong.
The Australian Institute of Superannuation Trustees, one of the many industry groups in the game, wants to bust this particular ‘myth’.
Along with the largest fund Australian Super they want us to have a ‘super reality check’ and have a better understanding about the income we might expect in retirement.
They say claims you need $1 million have caused fear and concern amongst older Australians because many will only have more like $100,000 in super when they retire.
The issue is that the age pension, even after the recent changes to eligibility in the last budget, gives many of us more options than we realise.
Their research says a super balance of $150,000 gives a $163 a week on top of the age pension. A worker on the median income of $55,000 can with super and the pension get a tax-free retirement income of $34,000 almost 80% of their take home pay.
