Retirement: How much money do I need?
Do you need $500,000, $1 million or $1.5 million? The following calculator by Moneysmart.gov is a handy tool to calculate how much super you’ll need upon retirement.Posted: February 22, 2022
The MoneySmart retirement plan calculator gives a broad image of what your retirement fund will look like. Use this tool to give yourself a general idea of what you will have, and what actions you could take to increase your retirement fund.
The below table from MoneySmart.gov estimates how much money you will need on retirement based on the Industry Standard:
For example, with the below parameters:
-30 years old
-$65,000 p.a. income
-Retiring at 67 years old
-$30,000 starting super with 10% employer contributions
-No extra contributions (such as salary sacrifice)
You will have accumulated $419,470 in super with $39,168 p.a. retirement income
If, however you were to contribute just $250 per month extra into your super, you would instead have accumulated $562,881 in super, giving you a retirement income of $42,465 p.a.!
Smart money choices and contributions like this can go a long way to fund the retirement lifestyle YOU want.
For more information and useful resources, get in touch with Plus 7 Financial Management today!
The information provided on this website is general in nature. We have not considered your financial circumstances, needs or objectives and you should seek the assistance of Plus 7 Financial Management before you make any decision regarding any strategy or financial products mentioned on this website. Whilst all care has been taken in the preparation of this material, no warranty is given in respect of the information provided and accordingly neither Plus 7 Financial Management nor its related entities, employees or agents shall be liable on any ground whatsoever with respect to decisions or actions taken as a result of you acting upon such information.