The amount of money you need depends on the lifestyle you want to lead in retirement. Depending on your situation you could combine your super income with the Australian Government’s Age Pension to help fund your retirement.
How much super will I need?
This is a very personal issue and comes down to a number of factors including how you would like to spend your retirement.
However, as a guide, the Association of Superannuation Funds of Australia (ASFA) tracks the cost of living in retirement. The latest figures suggest a couple wanting a comfortable lifestyle in retirement will need $59,759 each year while a single person will need $43,482 each year1.
Can I get the Age Pension too?
The Australian Government’s Age Pension can provide you with income support and access to a range of concessions.
To be eligible you must:
- be aged 65 years or older if you were born before 1 July 1952 (from 1 July 2017 the qualifying age for the Age Pension will gradually rise to 67 for those born after 1 January 1957) and
- meet an income and assets test
You can learn more about the eligibility criteria for the Age Pension on the Department of Human Service’s website. If you are eligible, you may be able to top up the income you receive from your super with Age Pension payments.
Keep in mind opening, closing or starting a Pension account through your super fund could impact how much Age Pension you receive. If you apply for the Government Age Pension, 100% of your Pension account balance will be included in the assets test.
1. ASFA Retirement Standard December Quarter 2016 – Queensland. Figure quoted for a single person is based on a single female living in Queensland.