If you take it one step at a time, you may find that planning your retirement isn’t as complicated as it might seem.
Once you know how much income you may need, for how long and where it may come from, you can work out whether your retirement planning is on track.
Step 1. Figure out what your lifestyle will cost
The first step is to think about the retirement lifestyle you want. You might see yourself travelling frequently, spending more time with family and friends, or taking up new hobbies.
Once you know how you want to live in retirement, you can work out how much income you might need each year to make your dreams a reality.
Crunch the numbers
Use our Budget calculator to estimate your living expenses in your retirement.
Get a snapshot
Use The Association of Superannuation Funds of Australia (ASFA’s) Incomes for a ‘modest’ or ‘comfortable’ retirement as a guide.
Step 2. Consider how long you might spend in retirement
The next step is to think about how long your income might need to last. With health care and living standards continually improving, you could be retired for 20 to 25 years, maybe longer.
Step 3. Check your Age Pension eligibility
While your super can pay you a regular income in retirement, you may be eligible for a full or part Age Pension. This will depend on your income, assets and other factors. The Age Pension may provide an additional source of income to help fund your retirement lifestyle.
Source: MLC Insights
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