There is no correct answer to how much do you need to retire. It is up to you and how you want to spend your retirement years.
To start working out how much will be enough for you, think about what your ideal retirement looks like, and at what age you think you’ll retire.
Having a good idea about when you plan to retire and setting a realistic date can help bring things into focus. Then, you can start to look at what things you can do between now and then, to get where you want to be.
Here are some things to consider when figuring out your retirement lifestyle.
How much do you spend on groceries and everyday items? Do you eat out regularly? Do you take regular holidays? Any renovation plans? What hobbies do you have, or plan on taking up?
The Age Pension is a government entitlement and is available to any Australian who meets the age and residency requirements. The amount you receive depends on a range of factors such as your assets, how much super you have and any other income you may receive in retirement such as rental returns.
When you retire will play a big part in how much super you’ll need. People are generally living longer, and retirees can expect to live well into their eighties, so if you plan to retire at 65 you’re likely to need a source of income for at least 20 years.
Use our super modeler calculator to find out how much super you’re likely to have when you retire, and how long your super will last once you start drawing it down as a pension.
Increase your super contributions or contribute extra when you have a bit extra. Any boost to your super will help make sure your super will adequately fund your retirement lifestyle.
Combining your super into one account will make your super easier to manage, plus it will help grow your balances because you’ll stop paying multiple account fees and you’ll further benefit from compound interest. Every little bit helps.
Take some time to understand the different investment options and how they perform. Which ones are you comfortable invest in and will they help you achieve your savings goals?
If you’re happy to reduce your hours and not fully retire a transition to retirement strategy might be the option for you. It’s a great way to boost your savings before retiring.
You might find the answer to your question in the FAQ below. If you don’t find it there, you can call our Retirement hotline on 1300 017 589. Or complete the quick contact form and one of our team will contact you within the next two business days.
Centrelink needs to know some details so they can calculate payments such as the age pension. We provide this information directly to Centrelink electronically, on your behalf, every February and August. You can request a Centrelink schedule from Vision Super at any time.
No. Once you have opened an account you cannot make any additional contributions. However, you can close your existing account and open a new account, combining any additional contributions with your existing balance.
Important to know: Government changes to deeming rules could affect you if you choose to close your current account and open a new one. To find out whether your entitlements – including the age pension – could be reduced, so we recommend seeking financial advice first.
Eligibility for the government age pension depends on your age, residency status, and the income and assets tests. How much you receive is subject to the income you receive from other sources (including your superannuation) plus the value of your assets. If you are eligible, for all or part of the government age pension, then combining it with your Vision Super pension can work well. You can use the age pension to meet basic living costs and spending money can come from your Vision Super pension.