If your goal is comfort, retirement , you will undoubtedly be looking to conclude your career with as much superannuation  as possible.
However, what should you possess upon retirement? Similarly important, what should you have achieved financially by the age of 50 to guarantee you'll amass the necessary superannuation funds when you finally decide to retire?
Let’s see what the superannuation sector suggests for tomorrow’s Australian retirees.
What quantity of superannuation funds would be appropriate for me?
To start with, we should determine the amount required for a comfortable retirement.
Based on the ASFA Retirement Standard from the Association of Superannuation Funds of Australia, couples aiming for a comfortable retirement require approximately $690,000 in their superannuation fund. For single individuals seeking the same level of comfort during retirement, this figure stands at around $595,000.
AFSA outlines comfortable retirement in the following manner:
The comfortable retirement benchmark ensures that people can sustain a high quality of life after they stop working. This includes covering basic needs like food shopping, transportation, and house maintenance, along with having personal health coverage, engaging in various physical and recreational pursuits, and enjoying meals out occasionally. Crucially, this standard supports staying socially engaged—both online via digital means and offline with at least one local vacation each year plus an overseas journey every seventh year.
If you're content with a basic lifestyle after retiring, approximately $100,000 in superannuation would suffice for both partners and individuals once they turn 67 years old. According to AFSA, a simple retirement entails the following:
A moderate retirement budget aims to provide a living standard somewhat higher than what the Age Pension offers. This enables retirees to cover essential healthcare costs along with occasional physical activity, entertainment, and gatherings with loved ones. These estimates presume that retirees fully own their homes and maintain good health.
I am aware of the kind of retirement I would rather have.
What are some things I ought to accomplish or acquire by age 50?
According to BT Funds Management The typical superannuation balance for individuals aged between 50 and 54 years old (both males and females) stands at $215,118.
If you're 50 years old and have reached this savings level in your superannuation fund, give yourself a congratulatory pat. You’re making great strides toward enjoying a comfortable retirement.
For instance, if you were to compound Starting with a balance of $215,118 and achieving an average annual return of 7.5% over 17 years, your final balance would be around $735,000. This amount exceeds what’s needed for a comfortable retirement.
However, what if you find yourself lagging behind? Should you fall short, it might be beneficial to think about contributing additional funds to your superannuation account annually within your means. Each contribution makes a difference.
Furthermore, consider investigating how your fund measures up against similar ones. Even though previous performance doesn’t guarantee future outcomes, if your superannuation fund appears to regularly lag behind others, it might be worthwhile switching to an option with stronger historical results.
The post What level of superannuation savings would typically be expected at age 50? appeared first on The Motley Fool Australia .
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