Factors to consider
In Australia there is no set age for when you need to retire (although there are age and income eligibility requirements for the Age Pension); however, there are a range of factors that you will need to carefully consider. Such as your assets (this includes your superannuation amount, your savings, and other investments), your health, and whether you plan to work on a part-time or casual basis when you finish full-time employment.
You will also need to take into account how much money you’ll need to support the kind of lifestyle you’d like to have. Do you want to travel? Or do you want to just kick back and maybe partake in the occasional recreational activity, like a weekly hit of tennis or round of golf?
According to the Association of Superannuation Funds of Australia, single people aged around 65 will need around $28,000 per year for a modest lifestyle and about $44,000 to lead what is considered to be a comfortable lifestyle. For couples, a modest retirement will require about $40,200 per annum and a comfortable one roughly $61,800. These budgets assume good health and that the retirees own their own home.
A modest retirement lifestyle is considered better than the Age Pension would allow, but still only covers basic activities. A comfortable retirement lifestyle allows a retiree to be involved in a wide range of activities and to have a good standard of living. This would allow them to purchase things like private health insurance, a car, and occasional holiday travel.
Speak to a financial adviser
Having a plan and a financial roadmap is a great start but it’s also only the first step.
Getting some professional advice will give you a comprehensive guide to the best way to stay on track for your dream retirement.
About Australian Unity
Australian Unity is a health, wealth and living organisation providing products and services designed to help people thrive. More than one million Australians have created a bright future with us. Our businesses span operations providing healthcare, financial services, and retirement and living services, employing more than 7,500 people across Australia.
At Australian Unity, we make superannuation easy for you by providing a dedicated, experienced corporate superannuation account manager.
Senior Relationship Manager - Corporate Superannuation
271 Spring Street, Melbourne VIC 3000
M: + 61 0419 449 809
Australian Unity Personal Financial Services Ltd (‘AUPFS’) ABN 26 098 725 145, AFSL & Australian Credit Licence 234459. AUPFS is a wholly owned subsidiary of Australian Unity Limited. General Advice Warning: The information provided is intended as a general guide for reference. It is General Advice only and has been prepared without taking into account your objectives, financial situation, or needs. Because of that, you should, before acting on any of the information or advice, consider its appropriateness, having regard to your objectives, financial situation, and needs. Where it relates to the acquisition of a particular financial product, you should obtain a Product Disclosure Statement relating to that product and consider it before making any decision about whether to acquire the product. Any comparison of superannuation funds in this document has been prepared on the funds as a whole and has not taken into account variations that may occur due to a fund member’s particular circumstances. Please refer to our Financial Services Guide.