You may need less money when it comes to your retirement.
This can be for a few reasons:
You may already own your home by retirement (i.e. no longer paying a mortgage).
You'll generally pay no tax on the income you draw from your super.^
^ Up to the defined benefit income cap, where applicable.
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Read the transcript
A question we hear a lot is ‘How much super do you actually need to retire?’ and perhaps frustratingly, the answer is different for everyone.
Your lifestyle goals, your assets outside of super, and your current and future spending habits are just some of the things that can make a difference.
When you’re calculating your future budget, it’s worth considering the ways in which your current spending patterns might shift as your lifestyle changes. For example, your weekly allocation for takeaway coffee and lunches on the go could change depending on whether you spend more or less time out and about during your retirement. You may also wish to take up or increase your level of private health insurance. On the other hand, you may find yourself saving money, thanks to concessional rates for transport and entertainment.
UniSuper offers a range of tools and services to help you take the guess work out of retirement planning. Our Retirement Expense Planner can guide you through some of the more common spending categories and help you to understand your own potential costs. And our retirement savings and retirement income calculators can show you how much you might expect to retire with, and what your regular income could be in the years that follow. With tools like these, an award-winning~ network of financial advisors, and a range of investment options to suit your needs, it’s easy to see how we’re taking the guesswork out of retirement planning
Visit unisuper.com.au/howmuchdoyouneed to learn more.
~ Remember, awards and ratings are only one factor to consider when purchasing a financial product.
The information contained in this video is of a general nature and doesn't consider your personal circumstances. Before making decisions, consider the relevant PDS and TMD on our website and your circumstances, and whether to seek financial advice. Investment returns can be positive or negative. Past performance isn’t indicative of future performance.
UniSuper Advice is operated by UniSuper Management Pty Ltd ABN 91 006 961 799 (USM), which is licensed to provide financial product advice. USM is also the administrator of the fund UniSuper ABN 91 385 943 850 (UniSuper). UniSuper Limited ABN 54 006 027 121 is the trustee of UniSuper.
To help you think about how much money you may need in retirement, it can be helpful to consider the difference between a modest and comfortable retirement lifestyle.1
What is a modest retirement lifestyle?
A single person with a super balance of $100,000 who receives the Age Pension could live a modest retirement lifestyle and may allow for things like:
• a basic level of private health cover,
• yearly domestic travel,
• general living expenses, basic maintenance to the car or home,
• and infrequent social activities.
A modest retirement lifestyle may cover the essentials.
What is a comfortable retirement lifestyle?
A single person with a super balance of $595,000 who receives the Age Pension could live a comfortable retirement lifestyle and may allow for things like:
• a higher level of private health cover,
• yearly domestic travel and occasional overseas travel,
• higher cost of living expenses, renovations to the home,
• and frequent social activities,
A comfortable lifestyle could allow for a range of social and leisure activities.
What is your ideal retirement lifestyle?
When trying to understand how much super you may need to retire, it’s important to consider the lifestyle you want to live in retirement.
To help you get started, you could think about:
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1. Your lifestyle in retirement
Do you plan to maintain your social life or make changes in retirement?
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2. Your non-essential expenses in retirement
Will your spending habits change? Will you spend money on coffee or lunches a few times a week etc.?
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3. Your travel plans in retirement
Do you plan on travelling internationally or within Australia in your retirement? Travel can represent a large expense in retirement.
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4. Your healthcare needs in retirement
Our healthcare expenses change as we get older. You may need a more comprehensive healthcare plan.
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5. Your cost of living expenses
Think about how much you are spending on your essentials such as food and household bills. Will your cost of living change?
Estimate your super balance at retirement
Our Retirement Savings Calculator can estimate how much super you may have when you retire.
The calculator is a great first step in helping you to reach your retirement goals. It’s easy to use and will show you your estimated super balance and income in retirement including the Age Pension.
What else can influence how much super you need to retire?
Along with thinking about your retirement lifestyle, you should also consider other cost of living factors that can influence how much super you need to retire.
To help you gain a greater understanding of how much super you may need to retire, think about these five things:
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1. Housing needs in retirement
Will you own your own property in retirement, or will you be renting?
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2. Medical costs in retirement
Your healthcare costs are likely to increase, will you consider private health cover?
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3. Aged care and living options
From a retirement village to getting help around your home, each aged care option will have a varying level of expense.
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4. Your expenses in retirement
Our retirement expense planner [PDF, 3.3 MB] can help you understand your cost of living in retirement.
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5. Life expectancy
Our Retirement Savings Calculator can be adjusted to help you see how far your super balance could stretch.
Turn your super into a regular income in retirement
Our retirement income accounts turn your hard-earned super into a regular income.
Whether you need the flexibility to choose how much and how often you’re paid in retirement, or if you would prefer an income for the rest of your life, we have options to suit your retirement lifestyle.
Plan for a greater retirement
Our 4-step guide can help you plan with confidence and help you identify the things you should think about in retirement.
You may decide that you need to give your super a boost to be able to retire. Here are some ways to increase your superannuation balance.
Our retirement advisers are here to help you and can offer general advice2 on a range of topics at no extra cost to members.
The information is of a general nature and doesn't consider your personal circumstances. Before making decisions, you should consider the PDS and TMD on our website, and whether the information is appropriate for your circumstances otherwise seek financial advice.
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Things you need to know
1Source: ASFA Retirement Standard. These figures assume outright home ownership and retirement at age 67 and are current as at June 2024. All figures in today’s dollars using 2.75% AWE as a deflator and an assumed investment earning rate of 6 per cent. It is assumed the retiree will draw down all their capital and receive a part Age Pension. These figures are estimates only and are not intended to provide or suggest a guarantee on outcome. The actions that are appropriate for an individual will depend on their personal circumstances
2UniSuper Advice super consultants can give you information and tell you what is generally recommended for our members. This advice will be of a general nature only and will not take into account your personal circumstances. Consider the PDS and TMD on our website and consider your circumstances before making decisions. UniSuper Limited (ABN 54 006 027 121) is the trustee of UniSuper (ABN 91 385 943 850).