Creating a super standard of living
July-20-2011Hello fellow super enthusiasts!
I’m back on deck now as the family and I have returned from sunning ourselves on the NSW coast…you missed me right?
Can I just say that whilst having a break is nice, it makes you realise just how quickly the bank account erodes when there is no money going into it…only out of it. As usual, that got me thinking about super and what this means, so I was pleasantly surprised to find that the ASFA Retirement Standard was updated while I was away.
The new figures released show that retirees will now need an extra 600 bucks p.a. to live comfortably, compared to the last quarter. Ouch. That means a comfy lifestyle will cost a couple about $54,500per year and a single, around $39,800. Living a more frugal existence is obviously cheaper, but it still equates to about $31,200 and $21,500 for a couple and single respectively.
I wonder how much you need if you still have your four kids hanging around? I have a feeling the amounts would be a lot higher…double maybe? More like quadruple!
Either way, the numbers show that we need to be diligent with our super and for those of us who aren’t engaged like I am (it is perfectly normal to have every statement you’ve ever received colour coded in a binder), we need to make sure the system if efficient.
It’s like trading in the fuel guzzling, but good looking supercar to a reliable, yet smart looking and responsible hybrid.
On that note, I’m off to check the millions of emails that have piled up while I was away….most of which is fan mail I’m sure.
Yours in Super,
Hans
Hi Hans,
Those figures do look scary & agree for those of us who are engaged with super, we know that we have to be diligent. But what about the disengaged who don’t realise until late in their working career that their superannuation balances will fund their retirement adequately?
This in the long run will become a social & economic issue and thus affect the public purse so maybe the government can be on the front foot (albeit radical) and constrain how individuals use their super monies during retirement?
Initiatives such as increasing the SG from 9 to 12 %, introducing a low cost simple product (MySuper) will assist individuals super balances however I think changing people’s behaviour towards savings & superannuation is a cultural change management issue. This should involve embedding financial skills in the education system at a young age – just my opinion. We should all be saving for our biggest holiday – retirement!