Did you know the average superannuation balance for Australians aged 15 and over were $111,853 for men and $68,499 for women? Further, average superannuation balances at the time of retirement (assumed to be age 60 to 64) were $270,710 for men and $157,050 for women (Source: ABS, 2015/16).
These levels of superannuation balances may not be enough for some clients when compared to how much superannuation may be needed in retirement.
The Association of Superannuation Funds (ASFA) Retirement Standard benchmarks the annual budget needed by Australians to fund either a comfortable or modest standard of living in the post-work years.
According to the ASFA, to have a ‘comfortable’ retirement, single people will need around $545,000 in retirement savings, and couples will need $640,000 combined, assuming they receive a part age pension (June quarter 2019).
The Retirement Standard is updated quarterly to reflect inflation and the rising price of items like food and utility bills, as well as changing lifestyle expectations and spending habits. The Standard includes the cost of things such as health, communication, clothing, travel and household goods.
To find out how much money your client might need to support the lifestyle they want in retirement, use the ASFA Retirement Tracker tool.