Planning for retirement
Most of us want to enjoy a comfortable retirement, free of financial worries. One of the keys to achieving this is to plan for it. Consider the following:
How much should you be saving for comfortable retirement?
How much you will need to save for a retirement depends on:
- Your lifestyle, general health and financial commitments.
- If you plan to use some of your super to pay off a mortgage, buy a new car, or take a holiday.
- If you plan to save for future care in old age.
- Superannuation experts tell us that at least 12–15%* of a person’s salary needs to be saved for 40 years to receive a comfortable retirement income. Click here to find out more
*Source: Westpac/ASFA Retirement Living Standard, December 2004
How much income will you need to cover living expenses in comfortable retirement?
The Government sets the age pension on the minimum amount required to survive. However, the amount of income you will need in retirement depends on your lifestyle, general health and financial commitments.
Retirement living standards research has been developed to provide detailed budgets for both a modest and a more comfortable lifestyle in retirement. Click here to find out more
Our budget calculator shows you how much income you spend to cover your living expenses. Click here to find out more
When should you retire?
This will depend on your personal circumstances.
Deferring your retirement may mean that you may be eligible for the Federal Government’s Pension Bonus Scheme. This is a voluntary scheme that rewards people who defer claiming Age Pension. To be eligible for the bonus you must, among other things:
- continue to work past the date you meet age and residence requirements for Age Pension, and
- have registered with Centrelink as a member of the scheme, and
- meet a flexible work test with a minimum of 960 hours for at least one year after your registration.
You cannot accrue the bonus after you reach 75 years of age.
For more information call Centrelink on 13 23 00 or visit www.centrelink.gov.au
What options do you have for your super?
There are a number of options for your current super account when you permanently retire after your preservation age:
Make sure the super you have saved during your working life works for you in retirement by:
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“One of the most important decisions you will have to make as you prepare for retirement is what to do with your super.”
Options 55-plus calculator
Thinking about setting up a transition to retirement income stream (TRIS)? Use our Options 55-plus calculator here
Need some personal advice?
First State Super members have access to low cost financial advice through FSS Financial Planning.
Click here to find out more
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