$1 million is often thrown about as the sum needed to retire, but it depends more on your spending plans, according to new analysis.
New analysis challenges the widely touted view that couples need $1 million in super to enjoy a comfortable retirement lifestyle, with Choice spinoff Super Consumers Australia saying retirees with low-spending patterns can potentially bow out of the workforce with $88,000 in super, without their living conditions deteriorating.
But if they’re planning a lifestyle with a medium annual spend of $44,000, they’ll need $301,000 and if they’re planning a “low” spending of $34,000 a year, they’ll need $88,000. Single retirees planning a more modest annual spending need $73,000 by the time they’re 65, while couples need $95,000. “Having credible targets, based on actual spending, means people can confidently spend and get on with enjoying their retirement,” said Super Consumers Australia director Xavier O’Halloran.The three savings targets, high, medium and low, are based on what people tend to spend in retirement, and include a “buffer” to provide confidence that their savings can weather market turmoil and are based on growth asset allocation assumptions of a 60/40 split and a mean one-year nominal net return of 5.
“The ASFA Retirement Standard recognises that at 12 per cent Superannuation Guarantee contribution rates, Australians aren’t condemned to poverty in retirement.”Noting that couples with high spending patterns will generally need around $1 million to maintain their standards in retirement, he added that the message that all retirees will generally need $1 million to retire is “actually quite harmful”.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Officials intercept cocaine worth $1 million at Texas border postUS Customs and Border Protection officers in Texas have seized nearly 40 kilograms of cocaine with an estimated street value of more than $1 million.
Read more »
Australia's debt set to soar above $1 trillion, forecast shows | 7NEWSThe treasurer is warning Australians to prepare for a confronting budget situation when parliament resumes next week. National debt is forecast to climb beyond $1 trillion sooner than expected and taxpayers will be up for the bill. auspol 7NEWS
Read more »
‘I screamed and cried’: how Sri Lankan protesters unseated their presidentSri Lanka’s triumphant protesters celebrate Rajapaska’s departure, but say bigger systemic changes still needed
Read more »
Are you an empath? The upsides to being highly sensitiveAre you an empath? Most empaths don’t need to take a test to know they’re one; they just know. |SUNDAY LIFE by Evelyn Lewin
Read more »
James Webb Space Telescope comes closer to home with new images of Jupiter and its moonsHot on the heels of last week's release of the first images from NASA's James Webb Space Telescope comes something that you can actually see from your backyard: Jupiter.
Read more »
Australia needs gravity-wave detector to boost scientific standing, says professorDistinguished physicist Susan Scott wants Australia to take its place among global science heavyweights by building a gravity-wave detector.
Read more »