Emma is 53, working part-time and would like to retire at 60. She asks personal finance guru Noel Whittaker whether he believes she is on track.
I am 53-year-old single woman working part-time. I have a current super balance of $197,000 and own my home, worth approximately $650,000.
I would like to retire at 60, and currently have annual super contributions of $8400. Do you think it is viable for me to retire on $40,000 per annum from age 60 when I can access my super?
If not, how, much do you think I should I be topping up my super from now until I turn 60?
A. It’s extremely difficult to forecast what may happen in seven years – the economic situation may be vastly different and pension eligibility may well be tightened. In any event, under current regulations you can’t access the pension until you are 67. This means, at the age of 60, you will need to support yourself for seven years.
My advice is to plough every spare dollar you have into superannuation, and try to put yourself in a situation where at age 60 there will be some part-time work available for you. That may well be in a different job to the one you are in now.
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Noel Whittaker is the author of Making Money Made Simple and numerous other books on personal finance. His advice is general in nature, and readers should seek their own professional advice before making any financial decisions.
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Disclaimer: All content on YourLifeChoices website is of a general nature and has been prepared without taking into account your objectives, financial situation or needs. It has been prepared with due care but no guarantees are provided for the ongoing accuracy or relevance. Before making a decision based on this information, you should consider its appropriateness in regard to your own circumstances. You should seek professional advice from a financial planner, lawyer or tax agent in relation to any aspects that affect your financial and legal circumstances.