How Much Money Do You Need To Retire On 60 000 A Year

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It's fair to assume that the average Australian might promise to live comfortably, if not lavishly, in retirement.

The widely-reported ASFA Retirement standard suggests couples tin relish a 'comfortable lifestyle' on around $65,000 a year. Information technology stands to reason so that a unmarried person should be able to live more than comfortably on $60,000.

If $lx,000 a twelvemonth sounds similar your kind of retirement, the adjacent step is to piece of work out how much super you volition need to fund it.

Crunching the numbers

The tables beneath show the super residual required to provide a couple or a unmarried person with almanac income of $threescore,000. Using MoneySmart's Retirement Planner nosotros've calculated various scenarios, depending on how long yous want your money to last and the boilerplate almanac return on your super investments, cyberspace of all fees.

We also look at outcomes based on whether or not you volition become eligible for the Age Alimony at some point as your savings are run downwards.

For simplicity, nosotros accept not counted savings and investments held outside super. If y'all have significant outside savings, you volition need less super. We as well assume y'all own your home.

We besides look at outcomes based on whether or not y'all volition become eligible for the Age Pension at some point as your savings are run down.

For simplicity, we have non counted savings and investments held outside super. If you have significant exterior savings, you lot will demand less super. We likewise presume you own your dwelling house.

The results are based on someone retiring at 67 merely apply to anyone who is over Age Pension age (currently 66 years and 6 months). All figures are in today's dollars (adjusted for inflation), bold an average annual 2.5% ascension in the cost of living and an additional 1.5% rise in living standards per year.

Transfer balance cap

Also keep in mind that there is a $1.seven million transfer balance cap on the amount of coin you can shift into a super alimony business relationship. Backlog amounts volition need to remain in a super accumulation account or exterior super, where earnings will be taxed. The interaction of the transfer balance cap with other income and investments can be complex, so we advise you to seek professional communication.

The $1.7 million cap applies to individuals, which means a couple could take up to $3.4 million in individual accounts. However, if a couple has one account between them in a single name, the $1.seven million limit applies.

Annotation: The cap was previously set at $1.half dozen 1000000 but increased increment to $1.7 million from July 2021.

Learn more near the transfer residue cap.

Where to go for more

Nosotros hope that the figures in the tables below will get you thinking.

The data in these tables is a small-scale selection of possible outcomes. To plug in your own numbers, check outSuperGuide's Income from super Reckoner.

Nosotros also encourage you to effort out MoneySmart's Retirement Planner computer with your projected super balance, retirement age, length of retirement and estimated investment returns. The calculator besides allows yous to enter outside savings and investments.

Disclaimer: This article is simply intended to give approximate figures near the range of superannuation required to fund a retirement income of approximately $60,000 per year. These figures exercise non take into account any of your personal circumstances and are too based on projections about time to come investment returns which may not be accomplished. We recommend that yous undertake your own additional inquiry for your own retirement planning, and wherever possible seek independent financial advice.

Couple – Super retirement balance needed to provide almanac retirement income of $threescore,000

Years super lasts	2%	three%	4%	5%	6%	7%
25 years	$ane,020,000	$830,000	$680,000	$560,000	$470,000	$400,000
30 years	$1,460,000	$1,240,000	$1,010,000	$790,000	$610,000	$490,000
35 years	$1,830,000	$1,610,000	$1,380,000	$1,140,000	$880,000	$640,000

Single – Super retirement remainder needed to provide almanac retirement income of $60,000

Years super lasts	2%	iii%	four%	5%	half-dozen%	7%
25 years	$1,690,000	$ane,515,000	$1,350,000	$1,205,000	$1,075,000	$965,000
30 years	$2,425,000	$2,015,000	$1,650,000	$one,450,000	$1,280,000	$1,130,000
35 years	$3,445,000	$two,985,000	$two,375,000	$1,680,000	$1,465,000	$1,275,000

Assumptions

• You own your own dwelling house and have personal avails of $25,000 or less. These calculations do non permit any investment assets exterior super. Note that the amount of investment assets you have can greatly affect the corporeality of Age Pension you are eligible for.
• You retire after you reach Historic period Pension age.
• You are eligible for the Age Pension (or become eligible as your super balance reduces over time).
• Calculations for couples assume both are same age and super residuum is carve up evenly.
• All returns are net of fees.
• Results are in today's dollars. Aggrandizement costs are a two.5% rise per year in cost of living, plus a 1.five% additional rise per year in living standards.
• We recommend yous also review the assumptions that MoneySmart list below their calculator.
• Calculations were fabricated in May 2022.

Learn more near how much income your super could generate in the following SuperGuide articles:

Learn more than about how much super is enough in the following SuperGuide articles:

Acquire more than most how much super you need for a particular income in retirement in the following SuperGuide manufactures:

Source: https://www.superguide.com.au/retirement-planning/setting-retirement-living-income-target-year

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