Superannuation Advice & Services
For the majority of Australians, superannuation is the second-largest asset after the family home however its purpose is not well understood. Superannuation is essential to fund a quality retirement and it also offers a powerful wealth creation opportunity for people on higher tax rates.
We believe an accumulator or pre-retiree will need to discuss how their retirement might look, how much they will need and when they may be in the best position to commence this new phase of life. We have the tools and guidance to assist in managing this process and recommend this planning starts as early as possible.
Currently, the average Australian lives well into their 80s and a couple require almost $62,000 per year to live on to be comfortable (source ASFA). This equates to around $550,000 in today’s dollars to secure a comfortable retirement (including the age pension).
A couple recently retired with not quite enough superannuation to meet their living costs or to provide an income for the whole of their life expectancy. They approached us and we reviewed their spending patterns and introduced a little more risk into their superannuation investments to bridge the “gap”. This resulted in $105,000 added to their income and considerable peace of mind.
Note – if you require $60,000 pa in retirement you will need at least ~$530,000 in today’s dollars (includes the age pension benefit) to achieve what is considered a “comfortable” retirement lifestyle. If you require $40,000 pa in retirement you will need ~$335,000 in today’s dollars (includes the age pension) to achieve what is considered a “satisfactory” retirement lifestyle. We would encourage all clients to aim for higher investment goals in the event that the age pension is not available at the time of retirement.
We know greater than 60% of Australians use their superannuation to repay debts at the point of retirement (source: APRA). This is not the purpose of superannuation and a sensible financial plan can reduce debts and maintain a balance to support a fulfilling and satisfactory retirement.