How much super will you need?

For many people, the time spent in retirement is likely to be as long as the time spent in the workforce. Yet most people are not planning for the future, preferring to live in the present. At the moment, the maximum age pension for a single person is approximately $546 a fortnight. It’s even less per person if you’re part of a couple. Imagine waking up tomorrow and needing to survive on this amount? Could you afford the things that you are used to having, such as fresh food and groceries, petrol, new clothing, personal care items, medicine and health insurance, phone bills, council rates, electricity bills, social and leisure activities?

How much for a comfortable lifestyle?

According to the Association of Superannuation Funds of Australia Limited (ASFA)’s research, to have a ‘comfortable’ retirement lifestyle requires approximately $36,607 for a single person and $48,962 for a couple. A ‘comfortable’ budget allows you to maintain more aspects of your lifestyle that you currently enjoy. This could include up to 10 domestic trips each year and one overseas trip every five years. A comfortable budget could also allow you to purchase items such as a computer, mobile phone and entertainment system and eat out up to three times a week.

How much super you require in retirement will depend on your chosen lifestyle. Obviously, if you have grand plans you will need to save substantially more than if you plan to live modestly. The following table shows you how much money you will need to contribute each week to reach a particular superannuation savings target and the weekly income it is likely to generate.