Whether you're already enjoying life after work, or taking the step in the next few years, it’s important that you plan how to make your super last in retirement.
- It’s important to consider your super when planning for retirement
- Learn how much a ‘comfortable lifestyle’ will cost you in retirement
- Take simple steps to help make your super last longer
The Association of Superannuation Funds of Australia (ASFA) has created a Retirement Standard to help illustrate the kind of retirement lifestyle your savings may provide.
ASFA’s March 2021 quarter figures show that couples aged around 65 need to spend $62,828 per year and singles $44,412 to live a ‘comfortable’ retirement lifestyle.
According to ASFA, a comfortable lifestyle in Australia allows you to be involved in a broad range of leisure and recreation activities, have a good standard of living, and be able to afford things such as:
- Household goods
- Private health insurance
- A reasonable car
- Good clothes
- A range of electronic equipment
- Domestic and occasional international holiday travel.
The latest ‘comfortable’ retirement figures are higher than the 2020 March quarter due to differences in retiree lifestyles compared to a year ago. These include retirees shifting at least some money they normally devote to international travel to buying furniture, appliances and home improvements.
When pandemic-induced lockdowns are eased, retirees also now eat out more and take more domestic holidays, while the cost of petrol has also increased.
Here are some simple steps you can use to help make your super last longer.
1. Consolidate your super
If you have more than one super account, putting all your super in one place could save you from paying multiple fees. This can have a significant impact on your savings. Before you consolidate your super, you should check with your other super funds to see if there are any fees or tax implications, or loss of insurance or other benefits.
2. Review your investment strategy
Your investment strategy may also impact how long your super lasts in retirement. Make sure your investment strategy suits your personal circumstances and retirement goals.
3. Set a budget for your retirement
Keep in mind the way you spend money at the beginning of your retirement is likely to be very different from how you spend it later on. Initially, you might want to use more of your money on travel, whereas you may need to spend more on health-related expenses later.
To give you an idea how long your super will last, you can use QSuper's retirement calculators.
To bring members more certainty for the future, QSuper created an industry-first retirement product to offer retirees an income for life.
QSuper Chief of Member Experience Jason Murray said the Lifetime Pension aimed to provide members with greater confidence that their retirement savings wouldn't run out.