Q: How much will I need for retirement?

Everyone is different and how much you need to live comfortably in retirement will depend on a range of factors including whether you are married or single, if you have dependants, how you plan to spend your time, your hobbies and interests just to name a few.

The Association of Superannuation Funds of Australia (ASFA) has created a guide which shows how much you will need for a comfortable standard of living and the types of things you may need to spend your money on. They have estimated that to live comfortably:

Retired singles will need $38,611 per year
Couples will need $51,727 per year.

In our experience, however, most people would prefer to define their own level of comfort. I.e. people's lifestyles tend NOT to change once they reach retirement. If anything, people tend to spend more because:

  • in their early retirement they are still active and have more spare time
  • in their later years, medical and support costs increase

We, therefore, suggest you use your existing income as a starting point when assessing your readiness for retirement.

Q: Do I have enough to retire?

To work out whether you have enough to retire there are three things you need to know:

  1. How much income you’ll require in retirement
  2. How many years will you spend in retirement
  3. How much you expect your investments to earn over your retirement years

We are living longer and it is not unusual to live more than 20 years in retirement, so it's important to determine your needs in retirement.

BHA’s retirement tracker can help you work out how your retirement savings are tracking and how long they might last.

Q: What is the safest place to invest my retirement savings?

In recent years, people in or nearing retirement, have seen the negative impact market volatility can have on personal savings and how this affects income available in retirement.

At BHA, we believe that assets used to generate retirement income should be guaranteed and not susceptible to market volatility. Capital protection in retirement is a cornerstone of our advice philosophy, providing our clients peace of mind when they need it most.

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