How much superannuation do I need for my retirement?
Everyone has a different idea of what life after work looks like – and obviously this affects how much your retirement will cost. Chances are your retirement will be pretty similar to the lifestyle you have now – only you won’t have to go to work every day!
It’s tricky to put an annual dollar value on your financial independence, but a general rule of thumb is to take 65 per cent of your current net income. This is because you will have most likely taken care of large debts and expenses by retirement, like your mortgage and kids’ school fees. This figure gives you a lifestyle approximately the same as your current one, including the luxuries that you enjoy today.
A more tailored way of working out how much super you’ll need for retirement is by using our ‘Retirement Simulator’. With this super simple tool, you can find out if your savings are on track. The retirement simulator:
- is free, quick and easy to use
- estimates your future super balance
- helps determine your retirement lifestyle
- gives options to improve your results
- provides a report of your results.
Talking to a Suncorp Financial Planner can also help you work out what you’ll need in retirement, and the steps you can take to get there. You can make an appointment by visiting a Suncorp Bank branch or calling one of our super specialists on 13 11 55 (and ask for ‘financial planning’).