Where will your super take you?

A recent survey (1) suggests that only 34% of working Australians have a good idea of what their projected retirement income will be. This means the standard of living that people currently enjoy, is likely to change significantly upon their retirement unless they take action now.

So how far will your super take you once you retire?

To enjoy a ‘comfortable’ retirement lifestyle, a couple needs about $48,000 per
annum (2). For a single person the amount is about $36,000 (2). A ‘comfortable’ lifestyle includes enjoying a broad range of leisure activities and a good standard of living.
From a travel perspective ‘comfortable’ means domestic and occasionally international holiday travel. Of course there are people that need less retirement income but also many that want more.

The average balance across all legalsuper’s members is about $22,500. (Of course, some members may have other assets.) The average balance of those members who are nearing retirement (aged between 50 and 60) is around $50,000. This means it is likely many members need to start saving now to be able to afford the lifestyle in retirement they want.

Click here to see how much super you may need to save to fund your retirement

1. Source: AXA Retirement Scope, Jan 2007.
2. Source: Westpac – ASFA Retirement Living Standard.

Salary sacrifice