Some people can’t wait to retire, while for others, closing the door on working life can be challenging. You may not always get to choose when you retire either – health issues, redundancy or family responsibilities might force you to say goodbye to working life before you’re completely ready.
One of the biggest stressors for people approaching retirement is whether they’ll have enough money. When you’re used to receiving a regular income, the idea of stopping work and living off your retirement savings can feel daunting.
You might be wondering how much you’ll need for retirement, but generally there is no one-size-fits-all answer to this question. Everybody has different needs and priorities, and how you spend the next phase of your life is up to you.
The government Age Pension is available to those who meet the residency requirements and financial thresholds from age 67, but the challenge is that even if you’re eligible it may not be quite enough to live comfortably.
If you own your own home, a rule of thumb is that you’ll need two-thirds* of your pre-retirement income to maintain the same standard of living in retirement. This is where your super comes in, and for most people income in retirement will be a combination of superannuation and government support, like the Age Pension.
Retirement is a significant life change, but preparing and planning early can make the transition smoother. To help you figure out your goals and the steps to get you there, Vision Super has created its own Retirement guide.
The Retirement guide steps you through some of the key things you may want to consider, with information that’s simple to understand and easy to come back to when you need to.
Topics include:
- When you can access your super
- Calculating how much money you’ll need in retirement
- Boosting your super before you retire
- Making the transition from work into retirement
- Your mental and physical well-being – it’s not just about money
- The importance of setting new goals once you stop working.
The Retirement guide can be downloaded for free from the Vision Super website.
*moneysmart.gov.au/grow-your-super/how-much-super-you-need
Any advice in this document is general only and has been issued by Vision Super Pty Ltd (ABN 50 082 924 561) (AFSL 225054) as the Trustee of the Local Authorities Superannuation Fund (ABN: 24 496 637 884) (‘Vision Super’). The advice does not take into account your personal objectives, financial situations or needs. Before acting on the advice, you should consider whether it is appropriate for you, having regard to your own circumstances, and obtain the appropriate Active Super Product Disclosure Statements (PDS) / Member Guides and Target Market Determination (TMD) available from www.activesuper.com.au or the appropriate Vision Super Product Disclosure Statements (PDS) and Target Market Determinations (TMD) available at www.visionsuper.com.au.
