Ideally, you would have been planning for retirement since you got your first paycheck, but this is how much those extra contributions can add today.
The sooner they understand and take control of this asset, the greater the long-term benefits will be.”For example, if you were 30, with $41,000 in super – the average balance of those aged 30-34, according to APRA – you’d have $756,100 by the time you’re 67, according to the Industry SuperFunds super calculator, based on a $100,000 income.
“By this stage, the impact of advice on your quality of life in retirement is significantly limited. For Millennials, there is a huge opportunity to ensure our retirement looks exactly the way we want it to.”coupled with a proactive strategy to get there.Questioned whether this generation is doing enough to prepare, he says “enough” is a “piece of string”.
To get to a “comfortable” retirement, which ASFA says requires an income of at least $50,004 a year, that same person would need to add an extra $4100 to their super a year – or $158 a fortnight. And it doesn’t help that day-to-day cash-flow is a challenge, she adds. Many of her clients are what has been called the “sandwich generation”. They’re sandwiched between caring for young kids and, for some, elderly parents too.“In the last six months I have seen more Millennials struggling with their cashflow … particularly those with daycare,” she says.