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There’s been a lot of discussion in the media regarding our government’s plan to INCREASE the retirement age to 70. This has led to Australian’s asking some important questions:

  • Could you work this long?
  • Will your superannuation provide a comfortable, reliable lifestyle?
  • What are the lump sum figures required for a comfortable retirement?

What is a comfortable retirement lifestyle?

Data from Deloitte, estimates the lump sum needed to produce a “modest income” in retirement is $340,000 for a man and $370,000 for a woman, [the latter due to an average longer life]. However, the lump sums for a “comfortable lifestyle” are much greater – $610,000 for men and $690,000 for women.

A “modest” lifestyle is defined by Association of Superannuation Funds of Australia [ASFA] as better than the age pension, but still only able to afford fairly basic activities.

A “comfortable” lifestyle enables an older, healthy retiree to be involved in a broad range of leisure and recreational activities. They enjoy a good standard of living through the purchase of household goods, private health insurance, a reasonable car, good clothes, a range of electronic equipment, domestic and, occasionally, international holiday travel.

Although these numbers may seem large, the modest lifestyle amounts equates to $450 per week for single retirees. The comfortable lifestyle is around $813 per week.

What do you need to do?

To achieve this level of comfort, Deloitte’s recommends the average Australian should contribute an extra 5.5% to 7.5% of their annual salary to superannuation. These figures are in addition to the existing 12 per cent superannuation guarantee charge.

Take a look at your super and see how it shapes up. How do you think ongoing changes to super will affect your retirement nest egg?  How does a superannuation strategy stack up against a property investment portfolio?

We are specialists in  property investing, assisting busy business owners and professionals with access to wholesale buying power for investment properties.

Monthly we get together with people like yourself and discuss key topics such as:

  • Three secrets of a solid base for success.
  • How to find a property that suits your portfolio.
  • Setting up your SMSF and is it for you?
  • Minimising Risk and Maximising Returns.

Contact us in relation to using your super to begin or expand a property portfolio OR join us at one of our workshops.

 

Property Friends is a specialist Property Investment Advocacy that has been operating for the last 13 years on the basis of 3 principles: Trust, Community & Progress. www.propertyfriends.com.au (03) 9758 5331

Uwe Jacobs Property Strategist

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