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If you're over 50, a certain question may be raised with you at the dinner table or BBQ this holiday period: "What are your retirement plans?"
© Danielle Robertson Consulting Pty Ltd t/as DR Care Solutions
For many of us, the question of retirement circulates in our minds without resolution. The dawning of a new year brings it front and centre.
Concerns about rising inflation, aged care cost increases and the long-term sustainability of Australia’s pension system are balanced against surveys showing most retirees are dying with their superannuation capital intact[1] and many want to enter retirement after surviving a pandemic[2]. Around it goes!
As a professional advising older Australians on care, support and accommodation, I can say questions on the ability to fund care is constantly raised by clients and their families.
Certainly larger savings present clients with more choices.
With life expectancy expected to rise to 91 years for males and 93 for females by 2050, if you want more care choices as you age, you will need a decent nest egg of super.
Plan, plan, plan
My strong advice is not to ignore the topic. Tackle it by discussing retirement with a recommended and licensed financial planner[3]&[4], and make your retirement plans.
In preparing for the meeting, take a look at the Australian Superannuation Fund Association (ASFA)’s resources, in particular its SuperGuru website[5].
SuperGuru introduces the ASFA’s Retirement Standard[6], which is updated quarterly.
As at the end of September 2022 quarter, the standard states for a ‘comfortable’ retirement, single people will need $545,000 in retirement savings and couples $640,000.
These figures assume: home ownership; a current age of between 65 to 84 years; the drawing down on your super capital; and receipt of a part Age Pension. The definition of ‘comfortable’ is outlined in the infographic below:
Image Courtesy of ASFA
Check how you are tracking with your superannuation savings by simply typing your year of birth into the Super Balance Detective[7].
Be mindful of all the small footnotes accompanying the figures.
While you can use ASFA resources, it really is a topic best addressed with a recommended and licensed financial planner. If you’re over 50, go make an appointment.
Note: The information in this blog is not to be considered as financial advice. Please see a licensed financial planner for financial advice.
Seeking care for a loved one? Please feel free to call me, Danielle Robertson, for an initial discussion on how to set up the right care, support and assistance at the right time and in the right place.
Resources
[1] 26.1% of men and 20.5% of women maintain all super capital; 51.5% of men and 46.3% of women maintain part of their super capital. See page 13 of Challenger - National Seniors Australia:- The Evolution of Retirement Income: A 2022 Snapshot
[2] AgedCare101: 1 In 4 People Say Covid-19 Has Changed Their Retirement Goalposts
[3] MoneySmart: Choosing A Financial Adviser
[4] DR Care Solutions: Financial Adviser Partners
[5] SuperGuru
[6] Super Guru: How Much Super Will I Need?
[7] SuperGuru: Super Balance Detective
