How much super is enough?
You may have a lot going on right now, but it’s never too early to start making plans for the retirement you are already dreaming of.
To better understand the funds you’ll require, first consider what you’d like your retirement to look like. The Association of Superannuation Funds of Australia (ASFA) website talks about retirement expectations and outlines the amount you may require for a modest or comfortable retirement. For example, there’s practical information regarding how much you would need to replace the disposable income of your working lifestyle.
To work out how much your retirement lifestyle might cost, you’ll also need a realistic budget. This helps to understand your cash flow, can allow you to plan to pay down debt and put away enough money to meet your goals. The key is to make budgeting a habit, no matter your age or financial position.
How to work out what you currently spend.
- Where does your money go each day, week, fortnight and year?
- Record your expenses each day.
Examine the ins and outs:
- How much money comes in? Is there extra from any other source?
- Where does your money go?
- When do your regular expenses arrive? Do you have money set aside for this?
- Your bank, apps, even a spreadsheet can help break down your spending.
Prioritise where it goes:
- Cover your essential costs.
- Pay down debt early to save on interest.
- Save for renovations, a new car or holiday.
- Consider investing any spare funds—maybe in your super?
- Shop around to get good deals on your basic bills and expenses.
- Simplify bill payments by using either direct debit or automatic scheduled payment options.
- Take control and check your budget as often as you can, at least once a year.
Keen to know more? For additional tips and support visit How much super is enough.
Are you an ADF veteran? To embark on a pathway towards financial wellbeing, explore the available guidance at the CSC Vets Hub.
And for further support, information and resources, sign up to the Vets Hub Community