Sometimes it’s hard to take superannuation seriously. That’s partly because it’s on the yawn side of finance.
But it’s mostly because retirement can seem like a distant dream, and not the nightmare it can be when we ignore it. It’s more of a tomorrow-thing rather than a today-priority.
It’s also because lots of the advice about super is complex which means we leave it on our to-do list. But it doesn’t have to be like that.
This is why I believe that focusing on the WHY, is the smart place to get started. You will only care about taking care of your super when you …
Give it meaning
Otherwise, why would you ignore the demands and lures of today to focus on tomorrow? If you can think about what it will mean to you, then you’re more likely to prioritise good decision-making.
To get you started, imagine you’re 67 years old. What does fierce, fabulous and free look like for you?
That’s the starting point when it comes to your super, because that’s what it’s all about. At 67 or somewhere near that age, you’ll be looking to retire. And you’re going to need cash to fund your lifestyle. But how can you work out how much you need, if you haven’t taken the time to design your perfect retirement? Start there first.
Create a retirement budget
Now if you’re like us, you’re probably wondering how on earth can you know how much you need to live that lifestyle. Right?
As a little sneak peek … the Association of Superannuation Funds of Australia (ASFA)says that to live a ‘comfortable’ life in retirement, you need to have approximately $600,000 in super.
That would give you roughly $867 a week to live on in your golden years. How does that sound to you? Well, over here at Super Fierce HQ there is a general consensus … EEK!
Still not sure? We’ve done a bit more homework for you, crunching the numbers to put together three different lifestyles to aim for.
Of course, you can shoot for the comfy lifestyle. But if you fancy a few extra treats, Stylin’ could be for you. Or you might fancy a Gangsta lifestyle, sipping the golden Ace of Spades! And why not? You deserve it.
The table below are just examples – you’re unique so you do you – but the numbers stack up and make it a bit easier to understand what you’re saving for.
| Comfy (According to ASFA) |
Stylin’
|
Gangsta
|
|
| Weekly budget | $867 | $1,300 | $2,171 |
| Car | Suzuki | Mazda | Mercedes |
| Clothing budget (per year) |
$1,300 | $2,000 | $5,000 |
| Meals out (per week) |
1 | 2-3 | 3-5 (or upgrade to a fancy one!) |
| Domestic holidays
(per year) |
1 | 3 | 6 (or 2 in business class!) |
| International holidays | 1 every 7 years | 1 per year | 3 per year or a big long one! |
Get on track
Now, there’s another major problem with ASFA’s $600,000 we apparently need to retire in comfort … currently the typical single lady only retires with around $378,000. Ouch. That’s not even close to what we need to be comfy. And that $222,000 superannuation gap makes us feel SUPER uncomfortable!
On the positive side, knowledge is power. And that gap motivates us to make sure we know how much we have, and if we’re on track, so that we can create a plan to get us where we want to be. It’s also how we can help you!
Here’s how much super you (if you’re a single lady) should have today if you want to be on track to live the lifestyle you’re dreaming of …
| Age | Comfy (ASFA) | Stylin’ | Gangsta |
| 25 | $9,753 | $14,632 | $24,425 |
| 35 | $67,439 | $101, 176 | $168,893 |
| 45 | $165,082 | $247, 667 | $413, 430 |
| 55 | $318,486 | $477, 814 | $797, 615 |
| 65 | $547,219 | $821, 177 | $1,370,792 |
However you define your perfect retirement, super gives you a pathway to grow old on your terms. This is one time when you cannot afford to indulge in procrastination. Sorry! But it’s true. By the time retirement’s around the corner, when you’ll no longer be earning and relying on your savings and investment income, chances are you’ll be accustomed to a certain way of life. And without earning power, you need to have your funding all lined up.
Have a plan
You may want the Gangsta Granny lifestyle, but if that’s not within reach, you either need a miracle (or win a lottery – we’re vibing on this one too!) or get ready to make some changes that Future You will thank you for.
Not only does planning remind you of your goals, it also provides a course of action to build towards and hit those goals in a straightforward way. It might sound cliché, but the best goals are SMART – Specific + Measurable + Achievable + Relevant + Timed.
Get involved
Retirement may feel like a long time away for some, but your super is your money – learn to love it. And just because you can’t access it until retirement age, doesn’t mean you can’t manage it now. Don’t put your head in the sand – make it work hard for you. Super isn’t a piggy bank for grannies. It’s an investment portfolio. Take your super investment seriously and it’s a double win – gain confidence with investing and accelerate towards your retirement goals.
Top 10 tips to get your super sorted
- Write down what your future lifestyle looks like, at age 67. Create a Pinterest board, write a list, mind map – visualise it and put it down on paper.
- What does you weekly budget look like in retirement?
- Find out how much super you have and if you’re on track to meet your future your goals! Don’t know how? Hit us up at hello@superfierce.com.au for a free retirement lifestyle analysis report! Make sure you are in the right super fund with low fees. We can help you to compare super funds and see if you can do better
- Once you’re in the best fund for you, contact your super fund to see if you’re in the investment option and insurance cover for you – most have a dedicated advice service you can use (although advice is limited to the super fund you are in).
- Top up your super – Salary sacrifice or make after-tax contributions (especially if you intend on taking time out of the workforce).
- If you’re not working, look into spouse contributions so you don’t fall behind
- Check your insurance cover – Are you paying for insurance through your super? Are you covered for Death and TPD? Need income protection? Make sure you have the right cover at the right price. Don’t waste your precious super savings on fees!
- Make sure your beneficiaries are up to date. That’s the people (or pets!) who will receive your super assets if you pass before you can enjoy those funds – sorry, but you gotta prepare for the worst as well as the best. Remember, binding beneficiary nominations can expire every 3 years so make sure they’re up to date.
- Review! Each year when you get your statement check all your details are up to date – and make sure your fund doesn’t make it to the loser list!
- If you’re on your way to a gangsta retirement, stay connect with advice from your very own Super Fierce life coach as fierce as you are. It’s your shortcut to a better financial future!
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