Hello and welcome back to our Retire Happy series.
In the last clip, we looked at the different retirement lifestyles and how much they would cost.
Let's consider how much super you need to fund your retirement lifestyle.
The income amounts assume that on retirement you own your own home outright and are relatively healthy.
The super balance for a comfortable lifestyle assumes you will draw down all of your capital and receive a part age pension.
The super balance for a modest lifestyle assumes you will receive the full age pension.
The amounts shown depend on whether you are a couple or a single.
You can see on the screen the amounts required to achieve a comfortable lifestyle which enables a higher standard of living, or a modest lifestyle.
Wow Cam, that seems low. And I'm often asked, will our super run out before 10 years? And will that mean we'll have no super left and have to rely solely on the age pension?
Great question Leigh. This is where a combination of your super and the age is helpful to fund your lifestyle in retirement. That way, you can leave your super invested as long as possible to continue growing while taking an income.
Most people underestimate the impact of the age pension on the longevity of their super funds, and overestimate how much super is required to meet their lifestyles. This is why many do not have the confidence to spend in retirement.
BUSSQ advice specialists can help you understand the different strategies available. Join us in the next clip to learn about the different phases of retirement spending.
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