Thus we have used an annual income of $260,000 as $260,000 x 9.5% = $24,700 contribution to super each year. In Australia all individuals are entitled to a $25,000 superannuation contribution limit and a compulsory 9.5% from your employer. ![]() Its really only used to calculate the contributions to super in percentage terms. This one doesn’t make as much of a difference as you think. Gareth went with 90 as the target life expectancy. Living in Australia, the official stats say the life expectancy is 82.50 so I can only assume that I should have a high chance of hitting that. For me, I have a fairly non physical job, not really at any risk of dying on the job unless my keyboard and my grandparents lived to 90+. This one is really important as it moves the needle a lot. Gareth is 35 so the scenario is based on him. This one is fairly obvious and the sooner you start thinking about your retirement, the easier it will be to look at Superannuation investment opportunities. Understanding the numbers pre retirement Current Age Summary – Start a Self Managed Super Fund today.Scenario #4 – Sitting your funds in cash.Understanding the numbers post retirement.Current Superannuation (Retirement) Savings.Understanding the numbers pre retirement.Table 2: Budgets for various households and living standards for those aged around 85 (December quarter 2015, national) All calculations are weekly, unless otherwise stated. Single calculations are based on female figures. This can be greater than household income after income tax where there is a drawdown on capital over the period of retirement. The figures in each case assume that the retiree/s own their own home and relate to expenditure by the household. Table 1: Budgets for various households and living standards for those aged around 65 (December quarter 2015, national) Check your balance, contact your fund and set yourself up now for a comfortable retirement,” Ms Vamos concluded. “The earlier you engage with your superannuation, the easier it will be to accumulate enough to support you in your post-work years. Over the last 12 months, the communication group fell 6.3 per cent. The main contributor to the fall in the communication group this quarter was telecommunication equipment and services (-2.4 per cent). All fuel types, excluding LPG, recorded decreases. ![]() Falls in world oil prices continue to influence domestic fuel prices. ![]() Over the last 12 months insurance prices increased 3.8 per cent.Īutomotive fuel prices fell in October (-2.0 per cent), November (-0.8 per cent) and December (-2.1 per cent). Insurance prices increased 2.1 per cent in the quarter. The rise was partially offset by a fall in fruit prices (-2.6 per cent). The main contributors to the rise in the food group this quarter were take away and fast foods (+1.3 per cent) and vegetables (+1.9 per cent). Over the last 12 months, domestic holiday travel and accommodation prices increased 2.7 per cent. The rise in domestic holiday travel and accommodation prices was due to the October school holiday period and the lead up to the peak holiday period at the end of the year. The most significant offsetting price falls were automotive fuel (-5.7 per cent), fruit (-2.6 per cent) and communications (-2.4 per cent). The most significant price rises in the December quarter contributing to the increase in the annual budgets were domestic holiday travel and accommodation (+5.9 per cent) and international holiday travel and accommodation (+2.4 per cent). In order to achieve a comfortable standard of living in retirement, an individual requires a minimum of around $545,000 and a couple around $645,000.” “However, many Australians are still retiring with an inadequate amount of superannuation. “The cost of retirement has not substantially increased over the past few quarters, which is positive for current retirees,” explained Pauline Vamos, chief executive officer, ASFA. Total budgets for older retirees also increased by 0.5 per cent at both the comfortable and modest levels. The Association of Superannuation Funds of Australia (ASFA) Retirement Standard December quarter figures indicate another modest rise in the cost of living for retirees, with couples aged around 65 living a comfortable retirement needing to spend $59,236 per year and singles $43,184, both 0.5 per cent increases on the previous quarter.
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