AIST report fires salvo at the 'million dollar super myth'
Retirement | 3/08/2015 |
5 min duration
The Australian Institute of Superannuation Trustees (AIST) has taken aim at claims you need $1 million in super to live a comfortable retirement.
Labelled Busting the $1 million retirement myth, the AIST report says super savings for most people are bolstered by the government aged pension. As a result, a superannuation balance of $150,000 can deliver $163 on top of the age pension, according to the report.
AIST Chief Executive, Tom Garcia, says workers on an annual median income of $55,000 could be on a tax-free retirement income of $34,000, or 79% of their current take home pay.
"Superannuation doesn't exist in a vacuum. Most people approaching retirement will draw an income that is a combination of both super and the age pension," Mr Garcia said.