How much money will you need in retirement?
Assuming you own your home outright and are relatively healthy, the Association of Superannuation Funds of Australia (ASFA) estimates that single Australians will need $42,764 a year, while couples will need a combined $60,264 a year for a comfortable retirement. A comfortable retirement is defined as being involved in a broad range of leisure and recreational activities and having a good standard of living1.
But the question of how much money you’ll need in retirement really is an individual one and it largely depends on your current lifestyle and how you want to live when you’re retired.
When can you withdraw your super?
You can access your super once you reach your preservation age, which ranges from age 55 to 60, depending on when you were born.
But sometimes life forces events upon us, such as sickness, injury or redundancy which lead to an early retirement. If this applies to you, there are some circumstances when you can withdraw your super early.
Tips for an early retirement
If you dream of an early retirement, the following financial tips might help your dream become a reality.
Have a financial plan
It’s a good idea to have a financial roadmap which spells out things like your financial goals, expenses and debts so you always know where you are.
Live more modestly
Get serious about spending less and saving more by embracing the FIRE (Financial Independence, Retire Early) philosophy of living frugally, saving hard and investing wisely.
Pay off your home loan
A mortgage is probably something you don’t want to take with you into retirement, so prioritise paying it off to give yourself greater financial freedom.
Boost your super
While you may not be able to access it straight away, your super will mostly likely make up a major portion of your retirement savings, so increasing it while you’re still working is like making a payment to your future self.
Important informationShow more
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