The amount of superannuation you need to retire comfortably at 60 in Australia will depend on several factors, including your desired retirement lifestyle, your current savings, and your expected expenses in retirement.
As a general guideline, financial experts recommend that retirees have enough savings to provide an annual income of at least 70% of their pre-retirement income. To achieve this, you may need to save between 15-20 times your annual income by the time you retire.
For example, if you earn $80,000 per year before retirement, you may need to save between $1.2 million and $1.6 million in superannuation to retire comfortably at 60. This assumes that you will have paid off any outstanding debts, such as a mortgage, and that you will have no dependents to support.
However, the amount of superannuation you need may vary based on your individual circumstances. For example, if you plan to travel extensively or pursue expensive hobbies in retirement, you may need more savings than someone who plans to stay close to home and live a simpler lifestyle.
To estimate how much superannuation you will need to retire at 60, it's important to factor in your expected retirement expenses, such as housing, healthcare, transportation, and leisure activities. You may also want to consider seeking professional financial advice to help you develop a retirement plan that meets your unique needs and goals.
In addition to superannuation, retirees may also have other sources of income, such as rental income, dividends from investments, or income from part-time work. By carefully considering your expenses and sources of income, you can develop a retirement plan that provides financial security and peace of mind.
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Article posted:May 3, 2023 Category: Finance
