Do I have enough super if I live beyond 90?
“If I retired now, would I have enough money to last if I live into my 90s?” It’s a question many people approaching retirement ask themselves as they edge towards the exciting stage of their lives. The good news is that it’s not something that all Australians – even those already retired – should be too concerned about as there are lots of ways you can turn your situation around. Here’s what you need to know.
As life expectancy continues to grow (currently standing at 80.9 years for men and 84.8 for women), it’s never been more important to secure your finances in the event that you reach – or perhaps even exceed – this age.
To help you answer this question, AustralianSuper has a number of free, easy-to-use online calculators to ensure you’re on top of your finances well in advance of retirement. Here’s how you can make these resources work for you.
1. Get clear on your financial situation
Think it’s too late to prepare for your retirement? Think again. Even if you estimate that you’re just a year away from making the all-important transition, you can still make a big difference by planning between now and then for a comfortable and happy retirement.
First and foremost, knowing how much income you’re likely to receive in your post-work life is essential in deciding when you’ll retire. AustralianSuper’s retirement income calculator is a comprehensive yet simple-to-follow tool that anyone can use to help get a better idea of how much money you could have to live on in retirement.
Simply enter a few details and you’ll have your possible retirement position mapped out for you, depending on what age you’d like to retire and the annual income you want to receive. It even tells you when your super will run out and when you could become solely reliant on the Government Age Pension.
From there, you can take steps to increase your super balance with step-by-step guides to making extra contributions, reassessing your investments and more.
2. Work out your budget
Despite every Australian having different careers, salaries and living situations, there’s one thing we all have in common – without a clear and realistic budget in place, none of us can expect to live worry-free in retirement.
The AustralianSuper Home Budget Planner allows you to tally up all of your regular costs now, and then calculate how much you’ll need to live either “modestly” or “comfortably” in retirement. You can then download your budget, print it out and put it somewhere you see every day as a reminder of what you should (and shouldn’t) spend your money on.
3. Check your eligibility for the Age Pension
According to the most recent reports (not taking into account the eligibility changes implemented on January 1 this year) more than 2.5 million Australians are currently receiving the Age Pension – that’s almost 70 per cent of people over the age of 65.
So, it’s safe to say that many will rely on this income stream once reaching pension age. But just how much are you entitled to? AustralianSuper has an Age Pension Estimator to help you work out if and how you’ll be able to supplement your other sources of income.
It’s as easy as typing in your demographic details, salary, super balance, income from rental properties, assets and homeowner status. From there, you’ll be given an estimate of how much you can expect to receive from the government.
Remember, planning is key when it comes to preparing for a retirement you’ll love. For more information, financial advice and free tools visit the AustralianSuper website.
This article has been sponsored by AustralianSuper Pty Ltd ABN 94 006 457 987, AFSL 233788, Trustee of AustralianSuper ABN 65 714 394 898. The views expressed are those of Over60 and not AustralianSuper. For more information about AustralianSuper, please visit australiansuper.com.