Plan a better future with Equip's retirement calculator
Retirement | 16/06/2020 |
8 min read
Transitioning from working life to retirement is a big step. If you’re used to a 5-day week and the security of a monthly pay cheque it’s normal to feel a little anxious.
So how do you know you’re ready to make the switch?
Our retirement calculator can help. It’s a free online tool that allows you see what you might be retiring with, how long it can last, and what that translates to in annual income.
Watch the video below to see how the calculator works and the sort of information it can provide. You can try it yourself by clicking here.
While the calculator helps, putting those numbers in context is also important. Knowing how much the average Australian retires with, how they access their money, and what government support is available can help you better undertsand your own options.
Here are three things to keep in mind and help you get the most out of the calculator and your retirement savings.
1. How much do you really need for retirement?
According to the Association of Superannuation Funds of Australia (ASFA), a couple needs approximately $640,000 in retirement savings for a comfortable lifestyle. For a single person that number is $545,000. Those figures translate to an annual income of $62,000 and $44,000 respectively.
When talking about the ASFA numbers it’s important to note two things. First, they assume you own your home outright. Secondly, they’re based on take home (after tax) income.
2. How will you access your money?
Building up a healthy superannuation balance is important, but how you access and invest your money in retirement will also determine how long it lasts. You can learn more about preservation age (and when you can access your super) via our frequently asked retirement questions.
Transferring your super balance into an Account Based Pension is the easiest and most common way to start your retirement. This allows you to draw down an annual income from your savings while the balance continues to earn investment income, tax-free.
We also offer a simplified MyPension product, which automatically looks after your investments and can help to make your money last longer. It’s based on a set-and-forget strategy that annually rebalances your accounts between different types of assets while providing a retirement income.
A third option is to withdraw all or part of your balance from the super environment. This has both taxation and Age Pension implications, and we strongly recommend consulting a financial planner before making a decision.
3. Are you eligible for government entitlements?
Depending on your superannuation balance you may be eligible for a variety of government benefits and subsidies. While the Government Age Pension is currently only around $24,500 per annum for individuals, many people live on a combination of the Age Pension and their superannuation savings in retirement. This means even modest super savings can be used to boost your income.
Our Retirement Calculator can show you how long your retirement savings could last and estimate when you’ll be able to claim a full or part pension. And if you’re ready to talk to someone about more detailed strategies our financial planners can help you better understand your options.
What should I do next?
If you’re approaching retirement and starting to think about your options our Retirement calculator is a great place to start. It can provide you with a snapshot of your financial position and what that means for retirement.
And if you’re ready to speak to a financial planner about your retirement and how to get the most out of your super we have remote appointments available. Learn more about the financial planning process and make a booking today by clicking here.
This information is provided for general information only. It does not take into account your personal objectives, financial situation or needs and should therefore not be taken as personal advice. You should consider whether it is appropriate for you before acting on it and, if necessary, you should seek professional financial advice. Togethr Trustees Pty Ltd ABN 64 006 964 049, AFSL 246383 ("Togethr") is the trustee of the Equipsuper Superannuation Fund ABN 33 813 823 017 ("Equip" or "The Fund"). Past performance is not an indication of future performance.
Togethr Financial Planning Pty Ltd (“TFP”) (ABN 84 124 491 078, AFSL 455010), trading as Equip Financial Planning, is licensed to provide financial planning services to retail and wholesale clients. TFP is owned by Togethr Holdings Pty Ltd (ABN 11 604 515 791). You can obtain the TFP Financial Services Guide and/or Privacy Statement by contacting our Helpline on 1800 682 626. This is general information only and does not take into account your personal objectives, financial situation or needs and therefore should not be taken as personal advice.