The Average Superannuation Only Lasts 6 Years
After this people are forced to sell their family home and down grade to live some sort of a comfortable lifestyle.
According to the Sydney Morning Herald , more Australians than ever before intend to work beyond 70, as Generation X-ers and Baby Boomers fear they lack the financial security needed to retire sooner.
Many Australians are being forced into poverty in retirement. The value of the minimum wage had gone backwards nearly 10 per cent in two decades, making it even harder to accumulate enough superannuation.
What kind of retirement lifestyle do you want to have?
While jet-setting around the world may be the goal for retirement, the reality is that it costs a considerable amount of money. More realistically, you should consider the following:
- where you want to live – will you own your home, have a mortgage or need to pay rent?
- what your big expenses will be – will you travel, buy a new car regularly, or have to cover high medical and health costs?
- what your everyday expenses will be – do you hope to continue eating out regularly, enjoy going to the theatre or plan to lead a more frugal existence?
The cost of living in retirement can come as quite a shock to many people.
Taking into account how long you are likely to live, what your annual expenditure will be and how much income you can derive from other means, you should be able to calculate how long your super will last based on the income it needs to provide.
A good rule of thumb is to take your current income, drop it down to 70% and times that by 20 years to get how much you will need in retirement. On average Australians will need about 1.4 Million each.
The fact is the average superannuation around 280,000 only last 6 years or less!
So what can you do?
You can retire on the pension which is $375 per week
Or you can come up with a plan and take action to secure your financial future.
According to the experts, owning at least four investment properties outright is optimal for financial preservation.