Take our super health check to find out.

Research* has revealed that the national Retirement Savings Gap for the Australian population translates to nearly $75,000 per person. This is the difference between their actual superannuation savings and the amount they require in retirement. A gap this size will impact the way that you live your retirement years.

Rather than waiting until retirement to find out you have a shortfall, you can avoid a gap just by checking how you’re going along the way and taking action if you need to.

How much retirement income will I need?

As a starting point, the generally accepted figure is 65% of your pre-retirement income. You may need more or less depending on your personal circumstances. If you want to estimate the income you will need to have the lifestyle you want in retirement, you need to prepare a budget taking into account your desired lifestyle, goals and objectives.

How much do I need to have saved?

Based on 65% of your pre-retirement income, we’ve developed a simple savings guide below, to help you identify how much you should have saved in super based on your age and gross salary. Just find the age closest to yours and times the corresponding multiple by your current gross salary. This gives an estimate of how much you should have in your super account now.

Feature Article

You need to consider how applicable these assumptions are to you. Based on these assumptions, this result should give you a lump sum at age 65 that will generate the target income of 65% of pre-retirement income.

Are my savings on track?

Compare your current savings with the target from the simple savings guide above to see if you’re on track. If there is a gap – don’t panic! Remember this is just a guide and the results don’t take into account other assets you may have or any social security you may be entitled to in retirement.

What next?

You’ve worked out where you need to be, so the next step is to make it happen. You can influence how much you have at retirement through the investment option you choose, the level of contributions you make and by consolidating your super accounts. It’s also important to monitor your progress. Taking stock of your super each time you receive your statement is a great way to see how you’re tracking towards your retirement goals.

*IFSA/Rice Warner Superannuation Savings Gap Report, 2009