Home / Blog / Retiring at 60: Here’s How Much Superannuation You Will Need

Retiring at 60: Here’s How Much Superannuation You Will Need

Finally, you are just a few years from retiring. When you enter retirement, it is best to be adequately prepared. Proper preparation gives you peace of mind knowing you’re set for a happy and comfortable life. Many people feel that they are ready for retirement when they turn 60. This begs the question: how much superannuation do you need to retire at 60?

If this question has ever crossed your mind, the following article may be helpful for you. This article will cover just how much money you need to have in your super if you plan to stop working altogether when you reach the age of 60. 

Understanding What You Need

In a nutshell, you need to make sure that you have enough money to cover your everyday expenses for food, utilities, and other miscellaneous expenses that will continue despite not receiving your monthly wages. 

According to the Association of Superannuation Funds of Australia (ASFA), you need to have at least $545,000 to retire comfortably as a single person. As a couple, you’ll need to have $640,000 in your superannuation account. These conservative estimates assume that you’ll also receive a partial age pension from the federal government.

Pre-Planning

It pays to remember that you will incur different expenses after retirement. This only means that your budget will not look the same as it does now. Make sure you have the money to fund vacations and trips that you never got the chance to take when you were working. 

Aside from that, it would be prudent to consider what you will spend on medications, doctor’s visits, and other medical expenses. Pre-planning and anticipating your costs in this stage is critical. 

Adding Extra to Your Super

Based on the ATO rules in 2021, it is possible to add up to $27,500 to your super via concessional contributions and . Making small additional contributions may make a significant difference if you think your super will not be enough to cover all the expenses for your retirement lifestyle. However, it is still best to consult with a financial adviser to ensure that you take the proper steps to ensure that your super will be sufficient to pay for everything you need in retirement.

Consult the Experts

Thinking ahead for your retirement is the key to ensuring that your super will be enough to fund your retirement lifestyle. However, proper guidance and insight will give you an even better perspective. Speaking to a financial adviser will help ensure that you meet all your financial goals. A retirement planning adviser can outline all the steps and create a plan tailored to your unique situation. 

Retirement Planning Made Simple!

If you are planning to retire at 60, you must ensure that you will have enough money saved up in your super. This way, you won’t have a difficult time supporting all your needs and wants, including your medical expenses, along with any utility bills and other services that you will need to continue paying for after you retire. Working with an experienced financial adviser will ensure that you never run out of money during this stage in your life. 

Talk to the experts at Coastal Advice Ballina Byron if you need ethical superannuation advice! We offer trusted financial advice for Byron Bay, Ballina and the NSW North Coast. Book a complimentary meeting today!

DISCLAIMER: Coastal Advice Group Pty Ltd is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.

(Trading names of Coastal Advice Group Pty Ltd include Newcastle Financial Planning Group, Central Coast Financial Planning Group, Sydney Wealth Advisers, Compass Advice Port Macquarie, Wealth for Life Financial Planning and Coastal Advice Group Brighton/Somerton Park).

The views expressed in this publication are solely those of the author; they are not reflective or indicative of the Licensee’s position and are not to be attributed to the Licensee. They cannot be reproduced in any form without the express written consent of the author. Opinions constitute our judgement at the time of issue and are subject to change. Neither the Licensee, nor their employees or directors give any warranty of accuracy, nor accept any responsibility for errors or omissions in this document.

Any advice or information in this publication is of a general nature only and has not taken into account your personal objectives, financial situation and needs. Because of that, before acting on the advice, you should consider its appropriateness to you, having regard to your objectives, financial situation or needs.

Before making a decision to acquire a financial product, you should obtain and read the Product Disclosure Statement (PDS) relating to that product, it is important for you to consider these matters and to seek appropriate advice.

Past performance is not a reliable guide to future returns.

Any tax estimates provided by us in this publication are intended as a guide only and are not intended to be a substitute for specialised taxation advice. We are not registered tax agents and you should consult with a registered tax agent to determine your liabilities, obligations or claim entitlements that arise or could arise, under taxation law.

The information in this publication reflects our understanding of existing legislation, proposed legislation, rulings etc as of the date of issue. In some cases, the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way.

The publications on this site is designed for Australian residents only. Nothing on this website is an offer or a solicitation of an offer to acquire any products or services, by any person or entity outside of Australia.