It may sound crazy but $1 million in super may not be enough for a comfortable retirement. Deloitte have just released their latest report on superannuation in Australia. They highlight some big issues that will affect just about every Australian:
- A 30 year old on a salary of $60,000 is projected to have approx. $1.1m in super at age 65 in 2048. This would provide a modest retirement standard ($22,654) to age 94 or a comfortable retirement standard ($41,197) only to age 77.
- To achieve a comfortable retirement standard to their life expectancy a male would need $1.58m in super and a female $1.76m.
- This current 30 year old will need to put in an additional 5.4% for males and 7.5% for females above the SGC to enjoy a comfortable retirement.
- There are currently four workers for every retiree. By 2033 this will decrease to 3 workers for every retiree placing increased stress on the taxation and social security system.
- And to quote directly from the report “the concern is that current policy settings, including changes to caps and drawdowns, and the SGC 12% increase will not deliver the lifestyle that the majority of those retiring in the next 20 years are seeking”.
How much do you need? How long will it last?
These questions are best answered sooner rather than later! You better make sure you know.
For full details you can read the report here