Will A Million Dollars In Superannuation Be Enough?

How much will you and your family need in retirement?

Although the projected growth in the pool of superannuation savings is certainly heading in the right direction, the harsh reality facing those not far off retirement is that they will have nowhere near enough to retire on!

Increasing life spans, the effect of the Covid, and the fact that superannuation savings are not important to many out there (until they are near “retirement” age) is leaving many short, especially the older workers.

It is simple; most people retiring in the next 20 years will not have the lifestyle in retirement they are seeking, or they certainly deserve!

Two options will arise if they are to afford a comfortable retirement, firstly, they will have to work for longer and secondly, the increased contributions required to fund their super will leave them short of time.

As a result, many will be disappointed with their standard of living in retirement.

What can you do to fix this problem?

1. Start contributing to your superannuation earlier – The earlier in life that you start contributing extra to super the better your retirement will look.
2.  Understand how your superannuation is performing? Review your superannuation.   Could it perform better in an alternative retail or industry fund, or will utilising the benefits of a Self-Managed Superannuation Fund (SMSF’s) give you greater results? 

You need to compare and analyse, because the smallest of adjustments earlier on in your life can make a massive difference by the time you reach your 60’s when you need your superannuation for retirement.

Superannuation is complex.  Our team have the knowledge to help you project where you will be at retirement age and create a plan that will best suit your circumstances.  Please contact us.

To stay up-to-date with the latest news and insights in taxation, business, and finance, subscribe to our newsletter The Balance. By subscribing, you will receive valuable information and helpful resources to support your financial journey.