How much should you save for retirement? Will $300,000 see you through? $500,000?
You’ll probably need to double that. A 2013 report by Deloitte suggested that, for Gen Y, one million is not going to be enough.
According to Deloitte, if you are a 65-year-old man, you’ll need $330,000 to fund a ‘modest’ $22,654 per year. Women will need $360,000. For a ‘comfortable’ lifestyle of $41,197 a year, men will need $590,000 and women $660,000. This is well above the $85,000 the average Australian male of 60 – 64 currently holds and the $59,000 the average Australian woman of the same age has.
Younger Australians fare better because they have been paying into superannuation their whole working lives. They’ll still need to make sure they have about $1.1 million in superannuation if they want to live ‘modestly’ until they are 94. For a comfortable retirement, they’ll need approximately $1.6 million for men or $1.8 million for women.
How prepared are you? How big a percentage of your salary would you have to put away each month to save for this sort of retirement fund? Most people would find this a huge stretch, if not impossible. It’s no wonder so many of our clients have chosen to invest in property as a viable retirement investment.