Experts reveal how much super the average Aussie should have to retire comfortably
Recent news from The Association of Superannuation Funds of Australia (ASFA) has revealed how much super Australians should be aiming to have by retirement in order to live comfortably.
According to the ASFA; a couple should have roughly $640,000 in super savings at retirement, while singles should have around $545,000, assuming they use up all their retirement fund and receive a part age pension. However, the figures are based on the superannuation recipient/s having no mortgage or rent to pay for, according to news.com.au.
So just what is a ‘comfortable life’?
The ASFA has defined a ‘comfortable life’ as one that allows a retiree to enjoy leisure activities, buy household goods, private health insurance, a reasonable car, good clothes, electronic equipment and afford to travel.
ASFA Deputy CEO, Glen McCrea told 9 news that at the moment, just 20 per cent of Australians are currently able to retire with that amount of money under their belt.
There is good news too, though.
Super Guarantee Rate Increase
"The good news is the super guarantee rate will go up from July 1 to 10.5 per cent and gradually up to 12 per cent," Glen said. "Once it is up to 12 percent, more generations will get to that comfortable standard. We are predicting that by 2050, it will be 50 percent of people."
But what else can you do to increase your retirement savings? Here at SGB one of our main services is helping our clients start and maintain a self-managed super fund.
What is a self-managed super fund?
The difference between a self-managed fund and other types of funds is that the members of an SMSF are usually also the trustees. This means the members of the SMSF run it for their benefit and are responsible for complying with the super and tax laws. Moreover, having a SMSF can go a long way in helping you achieve your long term financial goals for retirement. However, they generally require a little know-how and professional guidance in order to succeed.
What is the purpose of a self-managed super fund?
According to the ATO, an SMSF must be run for the sole purpose of providing retirement benefits for the members or their dependents. Additionally, all decisions you make as trustee of your SMSF must be in the best financial interests of the members.
Are you interested in starting a SMSF? Don’t hesitate to get in touch and explore your options with us, today.
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