While everyone's situation is different, determining how much you need is a great starting point in planning your retirement.
There are different methods to determine how much you will need in retirement. Our experience tells us that 70% of your annual pre-retirement income is a suitable amount to maintain your current lifestyle when you stop working.
There has also been a significant amount of research conducted on the amount required for singles and couples to enjoy different standards of living.
Research on the cost of retirement
A comprehensive annual Australian survey reports regularly on the annual cost for singles and couples to achieve either a 'modest' or 'comfortable' retirement.1
A modest retirement is better than the age pension alone, however it only allows for fairly basic activities.
A comfortable retirement represents a good standard of living with involvement in a broad range of leisure activities and expenditure on household goods, private health insurance, a reasonable car, good clothes, a range of electronic equipment, and domestic and occasionally international holiday travel.
Single annual cost
Couple annual cost
How much will you have?
By using the information above as a guide, you can get a rough idea of whether your current savings will be enough, or whether you need to take action to increase your retirement savings.
To help you do this we've created the How much will I have/need calculator. This calculator provides an estimate of how much you'll have when you retire, and how long it will last. You can adjust a range of variables, such as extra contributions, to see what the difference will be by the time you retire.
1 The Association of Super Funds of Australia (ASFA), Retirement Standard, September quarter 2012. The annual income figures for singles are for females. Based on retirees who own their own home. Available http://www.superannuation.asn.au/RS/default.aspx
Will you have enough in retirement?
You'll feel a lot more comfortable about where you're headed in retirement with a bit of knowledge behind you. GESB offers free retirement seminars and webinars to help you get started.