How much do you need to retire comfortably?

Superannuation can feel very abstract when you’re in the middle of your working life. You know you're putting 11.5% of your salary away for a future date. But what does that actually mean, and will you have enough for the retirement you want? 

If you’re wondering what all those contributions will add up to, our retirement calculator can help. It’s an easy and effective way to predict your future superannuation balance and look at different ways to boost it. 

Equip’s retirement calculator 

Whether you’re looking at $200,000, $500,000 or a $1 million in super, knowing how much you'll have in retirement helps you think about the future and plan-ahead. 

Equip’s Retirement Calculator can provide an estimate of your retirement balance with just a few details. Simply enter your age, income, and current super balance to get a rough approximation of your future balance - and what that translates to in annual income. 

For a more detailed number you can add your spouse, and adjust things like your investment options, additional contributions, retirement age and future income requirements. 

If you don’t like the result, you can adjust the parameters to see how simple changes can potentially boost your balance.  

ASFA comfortable retirement

While everyone's circumstances and spending habits are different, ASFA's Retirement Standard provides some useful guidelines. 

According to numbers from March 20204, a couple needs a combined income of approximately $72,000 p.a. for a comfortable retirement. For individuals it’s about $51,000 p.a.

That equates to a superannuation balance of approximately $690,000 in super for a couple, and $595,000 for individuals. It also assumes you own your own home and are not making any mortgage or rent payments.  

While those numbers can provide a baseline figure, they don’t tell the whole story. Age Pension entitlements, part time work, and your investment choices can help top up your retirement funds and help your money last longer. Another thing to keep in mind is you won’t be paying any income tax on your retirement income. 

Creating a comfortable retirement income

Regardless of your projected retirement balance, there are always ways to boost your super.  

Here are a few things to consider: 

• Consolidate your super  

Consolidating your super with a single fund means you’re not paying unnecessary fees and charges. Searching for lost super and consolidating it is as easy as logging into your account and selecting 'Find My Super' from the drop-down menu. Learn more.

• Review your investment options 

If you haven’t paid much attention to your super, there’s a good chance your money is invested in a default option. That’s fine, but it’s not for everyone. Personalising your investment choices to focus on growth options with more assertive assets (like Australian shares, overseas shares or property) can potentially lead to higher returns, which means more money for retirement. Learn more.

• Consider salary sacrificing 

Even small additions to your super can add up. Salary sacrificing means you automatically pay some of your pre-tax income into your super. This can have considerable tax advantages and really boost your long-term balance. To get started just talk to your payroll person at work and let them know how much you’d like to set aside. Learn more.

If you’d like an estimate of how much extra you could have in retirement thanks to salary sacrificing you can try our Super Contribution calculator.  

• Look at retirement age 

People are living longer than ever and someone who retires in their early 60s may be relying on their super or the Age Pension (once they’re eligible), for the next 20-30 years. Pushing back retirement by a couple of years can make a big difference to both your final balance and later income. Learn more.

Alternatively, you may be able to bring your retirement forward if you discover that you’re actually in better financial shape than you thought. 

Retirement financial planning

Our retirement calculator can provide a snapshot of one potential future. But it also allows you to explore different strategies and their impact on your future super balance. If you’re wondering about your retirement and whether you’ll have enough it’s a great place to start. 

For additional information about your retirement and how to plan ahead consider speaking with one of our financial planners. The first appointment is available at no additional charge for Equip members.