How much super do you already have?
Working out how much you already have is simple if all your superannuation is in one super fund. Simply login to your account with your super provider or check your latest statement to find out how much you have. But for many of us who have more than one super fund, it may be a little more complicated. Do you know where your super is? Our Super consolidation service can help—it takes the hassle out of finding your lost super and brings it all together.
The age pension. Is it enough for you?
Before relying on the age pension, it’s important you work out how much you’ll need for the retirement lifestyle you’ve been planning for. In most cases, the age pension may not be enough to fund a comfortable retirement on its own. But it can still play an important role by qualifying you for the pensioner concession card, so you can save money on prescriptions, utility bills, council rates and other expenses.
Age pension rates
Here are the basic pension rates (June 2014) sourced from Centrelink:
|Status||Rate per fortnight ($)||Annual ($)|
|Member of a couple(i)||577.40||15,012.40|
This means an eligible couple can expect to receive $30,025 per year, around $3,484 below the amount the Association of Superannuation Funds of Australia (ASFA) says is needed for a modest lifestyle.
(i) These amounts exclude the pension supplement, which pensioners may receive as an additional payment.
How much income do you need?
As a general rule of thumb most Australians will need an income equal to about 65% of their pre-retirement income to maintain their lifestyle throughout retirement1. Of course, everyone has different needs, depending on the lifestyle you’d like to have. You may spend more than a quarter of your life in retirement, and the quality of your lifestyle throughout that time will depend on how much money you’ll have access to.
The figures in the table below give you an idea of how much you may need—lump sums have been calculated based on pre-retirement incomes. Only a financial plan based on your particular goals, needs and circumstances can provide you with information that relates to you.
If the lump sums in the table seem like a lot, speak with a financial adviser. He or she can help you plan to set up your investments, so they continue generating income and growth throughout your retirement. Before investing, make sure you understand the risks.
|Pre-retirement income||65% of pre-retirement income||Lump sum required2|
Watch the How much super do you really need? video to understand how much your retirement may cost you and what you can do to increase your nest egg.
Use our Retirement calculator to get a sense of how much you can spend in retirement and how long your funds may last. Keep in mind that if you're planning to retire at age 65 it’s likely you’ll live for another 20 years. The average Australian woman at age 65 has a life expectancy of about 87 years and men are expected to live to about 84 years. But there's a 50% chance you'll live longer3.
It’s not too late to plan
Now that you know how much super you have, you should start making sure you’ll have enough money to retire.
And no matter which stage of life you’re at, it’s important to realise that it’s not too late to make sure you have enough money for your retirement lifestyle. Talk to a financial adviser about a retirement plan.
An adviser will not only help with the financial aspects of retirement—the super, insurance and retirement income issues—but also help you identify your retirement goals and manage your lifestyle in retirement.
Important informationShow more
It’s important to consider your particular circumstances and read the relevant product disclosure statement before deciding what’s right for you. This information hasn’t taken your circumstances into account.
This information is provided by AMP Life Limited. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relation to products and services provided to you. All information on this website is subject to change without notice.
The issuer of AMP Flexible Super is AMP Superannuation Limited. AMP Flexible Super is a registered trademark of AMP Limited.
1 Rice Warner Actuaries, 2008 Report, commissioned by the Investment and Financial Services Association Ltd (IFSA).
2 Based on an AMP annuity quote at June 2006. 65-year-old male, 20-year nil residual capital value (RCV), nil indexation.
3 OECD Health Data, October 2012, frequently requested data.