If you’ve ever wondered whether you will achieve your retirement income target, check out MoneySmart’s calculation tools.
To begin with, work out how much superannuation and Age Pension money you will have throughout your retirement years with the planner tool. It takes just five minutes to discover:
- what income you are likely to have when you retire
- how contributions, investment options, fees and retirement age affect your retirement income from super
- how working part-time or taking a break from work affects your super.
The bar chart this tool generates will indicate how much you will receive each year until 90 years of age.
Next, try to figure out what your lifestyle will look like. If you own your home and are planning on having a comfortable lifestyle that includes some travelling, regular dining out and entertainment, then you fit into the YourLifeChoices’ Affluent tribe and our December Quarter Retirement Affordability Index™ * calculates that you will need an annual income of $42,225 to cover day-to-day spending if you are single, or $73,795 if you are a couple.
If you expect your spending to be modest and you are a homeowner, the YourLifeChoices Constrained tribe best matches your situation. This tribe needs a yearly income of $23,510 for a single and $42,343 for a couple.
Now compare your estimated retirement spending with the figure from the MoneySmart tool. If both are similar, then, barring unforeseen circumstances, you can expect to afford your aspirational day-to-day lifestyle.
If the gap is wide, then there are a number of strategies you can employ, depending on whether you are still working or not, to boost your super savings to a level you need for your anticipated lifestyle.
Remember that before taking any investment decisions, you should discuss your plans with a professional financial planner.
* The latest YourLifeChoices’ Retirement Affordability Index™ is available on our website.
Will you have enough money to fund your preferred retirement lifestyle? Do you have the means to boost your super savings?