Women tend to live longer than men and may spend up to thirty years in retirement. You need to make sure your money doesn’t run out before you do.
Women typically earn less than men, take more time off work caring for others and consequently often have lower savings in superannuation.
Your retirement is your longest-term goal, and it’s also your most important.
Probabilities show that females now aged 65 may live between 88 and 100.
The good news is that you may enjoy a long and healthy retirement. The bad news is, you are going to have to pay yourself for at least 25 years after you stop work – so the sooner you start preparing for your retirement, the better off you’ll be.
According to a 2014 report by Deloitte, Australian women need to have a lump sum of at least $680,000 when they retire to have a comfortable retirement.
I encourage everyone to start planning for retirement from age 40. By salary sacrificing a small amount extra into your super every year, you will have the benefit of time and compounding interest to help you accumulate sufficient retirement savings.
If you’re in your 50s or close to retiring, you’re likely concerned by these numbers.
According to the Association of Superannuation Funds of Australia (ASFA), a comfortable retirement includes:
- An annual holiday in Australia
- Eating out regularly with a good range and quality of food
- A reasonable car
- Bottled wine
- Regular haircuts at a good hairdresser
- A range of electronic equipment
- Replacing a kitchen and bathroom over 20 years.
Unfortunately only 15% of couples and 5% of singles currently have enough money in their super to fund a comfortable retirement.
If you want a fabulous retirement you need a plan to make it happen!
1Adequacy and the Australian Superannuation System – Deloitte 2014
2ASFA Retirement Standard September 2019
3http://www.superguru.com.au
