What income do I need in retirement

What income do you need in retirement?
How to set up your money to have a secure income in retirement?
According to AFSA (Australian Financial Security Authority) if you are a retired couple, you need an income of $42,560 to have a “modest lifestyle”.
The modest lifestyle means - you can cover all your bills, you have sufficient income for food and basic emergencies, but not really to have comfort of overseas holidays or buying big presents for your grandchildren.
Then to have a “comfortable lifestyle” which covers those extras, AFSA estimates a retired couple needs an income of $62,269p.a.
If we look at income needs for a single pensioner, AFSA says that a “modest lifestyle” can be achieved with $28,165 and to have a comfortable lifestyle a single person would need an income of $44,146p.a.
If we compare those income needs with the level of Age Pension, we can see the shortfall in every situation, even for a “modest lifestyle”.
Single Pensioner - needs $28,165, while the full Age Pension will provide only $24,770, therefore there is a shortfall of $3,395.00 p.a.
Retired couple needs $44,146 p.a. for “modest lifestyle”, while the full combined Age Pension will provide a retired couple with an annual income of $37,341 - shortfall of $6,805.
Video mentioned:
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[@AboutRetirementTV]

What income do you believe is needed for a "modest" and a "comfortable" lifestyle

[@Beamsontube]

Great info Katherine, in such an easy to understand form.

[@AboutRetirementTV]

Thank you so very much 😀

[@bernievangerven5560]

Hi Katherine, great video, we did our numbers and $58K a year equals a semi ok retirement, we'll be looking at circa $68k a year to get in some travel. Looking to retire in the next 12-18 months and be self funded (thru super) for 6 years and then have the super at a sweetspot to get the OAP at 67yo. I'm sure something from left field will throw a spanner in the works.

[@AboutRetirementTV]

Hi Bernie, always great to hear from you. I am curious what's your plan for setting up your super/pension asses. But good to hear you have worked that out long-term. 😀

[@bernievangerven5560]

@@AboutRetirementTV Planning for an account based pension thru super, not sure what investment strategy ATM, most likely balanced earning 5-7% pa. Between me and the boss (wife) aiming for a super balance at 67yo circa $500K, hopefully getting the OAP of around $20-$25K pa and drawing our required balance, around $45k pa from the account based pension.

[@AboutRetirementTV]

@@bernievangerven5560 Hi Bernie, I would be very careful if I were you to be drawing such a high level of income form 67 onwards. I did just very general calculations based on approx. 7% return. If you start drawing $45K per annum, your pension fund will be totally exhausted by the age of 83. Considering our life expectancy getting longer and longer and a great possibility of needing Aged Care or similar at older age, I would really try to plan for the money to last you much longer

[@chrisj6321]

@@AboutRetirementTV isnt age care costs based on what u can afford a bit like pension. if u have no super left its cheaper/free

[@AboutRetirementTV]

@@chrisj6321 well, to a point you a correct, but if your only income is Age Pension then 75% of each payment is taken to cover any fees, you have no say in the choice of the place, or at the least the choice is very limited and of course, no special treatments. Many years ago, while working for Trust Company, I was looking after a number of clients who had to enter such a place, some were quite nice and acceptable, others were terrible.

[@shuyingli8318]

We've been trying to figure out on this for some time now and found that if we want to receive age pension, we can't achieve 70k+ income. There's no good balance between age pension and a comfortable lifestyle.

[@lorrah6312]

Thank you Katherine, lovely your work. Can you have a super pension fund with one provider and a small amount in super with a different provider so you can keep adding small amounts from part time work. What are the pros and cons of this?

[@AboutRetirementTV]

Hi Lorra, thank you so much and I am happy that my videos are helping you make better financial decisions. You can absolutely have two different providers for a pension and a super account. There are really no negatives to do so, as long as you feel comfortable with the actual investments and the level of fees you pay is acceptable.

[@moppop2016]

i have no idea how to invest in stocks shares or bonds,i like the idea of cntrlink main income,how much would i have to invest, to bring my wife and i to a comfortable income of 52k..thanks

[@AboutRetirementTV]

Hi, thank you for your question, which is really one of the main questions we should be asking ourselves to create the retirement income certainty. I will try to create a video that tackles that problem as well.

[@josephj6521]

What’s your current age and superannuation balance mop pop?

[@sdnalyam]

So under ASFA figures, politicians and senior public servants pay and pensions must be dramatically slashed to bring them into line with Real Life of Average Australians.

[@suphatrachaiyasit7531]

Hi great channel but I wouldn't go on a cruise if you paid hahaha serious question if you rent these figures are way to low and I agree I want full age pension then also some monthly supperannuation payment but how much supperannuation is to much ? Thanks and are you In Melbourne

[@AboutRetirementTV]

ha, ha funny. I agree cruises are not for everyone. Thank you for watching my videos though. To get the answer o your question as to how much super is too much, please watch my videos about Age Pension that explain Income and Assets Test, but I always say, it is better to have more than not enough. We can always find the way with more, but I can never help anyone if there is no savings at all 😀

[@ahpaint]

katherine a fascinating video Thank you, for me I will be living overseas with living cost around 1/3 of Australia never the less the ammounts suggested are of great interest. Thanking you Alan

[@AboutRetirementTV]

Hello Alan, glad you enjoyed this video, 1/3 of Australian costs, that is significant saving. No wonder so many Aussies are researching those options 😀

[@marciapalazzi320]

Thank you Katherine, love your vids. Would love you to do a video on what you consider good retirement investment options inside super pension accounts. Super pension account “ready made” options seem way too conservative and with their strategy you would never have growth or decent income. Thanks again.

[@AboutRetirementTV]

Hi Marcia, thank you for watching my videos and I am so very thrilled you find them helpful. Your request is a difficult one, as the actual structure of the investment portfolio should be very personalised and there is no rule as to the best option, as each person will have different income needs, different expectation and different risk profile. "Ready made" options are just that, general option for the masses, but most likely not getting you too far, I agree.

[@aussietaipan8700]

In March 2020 I purchased shares in 3 companies, today in June 2022 they have more than doubled in value. I do use opportunities like this to "park" money for share price gains and twice yearly collect dividends.

[@SmellyT0fu]

I think even those ASFA numbers are too low. For someone that has started working in 1992 when compulsory super contribution came into legislation, shouldn't someone who would be 47yo (if they were 18yo and started working in 1992 would have much more than the number stated by ASFA?

[@AboutRetirementTV]

I suppose the reason for smaller balances that you would expect is the fact that this is an average super balance, so includes all part-time and casuals as well, this would reduce the average balance significantly. This is just about the only explanation I can think of.

[@SmellyT0fu]

@@AboutRetirementTV true. I’d wish they’d publish a median number to remove the outliers. Btw, thanks for your channel. Half way thru my working career, I’m getting heaps of thought starters on how I need to play the second half of my career to be able to slowdown/stop working.

[@josephj6521]

@@SmellyT0fu I’ve been working full time since the early 1990s and my superannuation balance isn’t good. In 1992 it was 4%. Now it’s 10%. I’ve had to add to it recently.

[@jodieluu]

I would like to ask some question about retirement . How can i do that ? Thx

[@AboutRetirementTV]

The easiest way is to visit my website and simply make a meeting booking. This way time is set aside and I can just concentrate on helping you

[@chrisj6321]

I find it tough thinking if should enjoy money in 30s 40s 50s or save for a good retirment. I worked out I might be able to afford getting upto 60000 a year but thats meaning no pension at all. Maybe I am better off enjoying more and just hitting the sweatspot of 50000 with 30000 coming from the age pension

[@AboutRetirementTV]

Hi Chris, from your comment I am unable to tell your age, but if you are many years away, don't even think about Age Pension, as the rules change every year.