Charlotte Foster

Retirement Income

The exact amount Aussies need to save for a comfortable retirement

The exact amount Aussies need to save for a comfortable retirement

A confronting new financial survey has revealed how much money Australians need to save annually in order to have a comfortable retirement. 

The survey, conducted by financial planner Merit Planning, concluded that the average Aussie may need to save around $75,000 to $100,000 per year to have enough funds to retire. 

And while superannuation is a major asset on the path towards retirement, the fund you invest with may not be giving you the full picture of where your money is going.

New analysis by Market Forces revealed several major super funds are potentially misleading consumers by “greenwashing”, with eight of the 11 super fund investment options labelled “sustainable” or “socially responsible”, choosing to invest in fossil fuel giants.

Both issues have cast light on major problems the average Aussie will face going forward as inflation and cost of living prices continue to surge.

Merit Planning’s survey took hundreds of responses from retirees about their retirement experience, showing how big their nest egg will need to be for the years ahead. 

Almost half of respondents, or 42 per cent, said between $75,000 and $100,000 is needed, while about 20 per cent said the average person needs over $100,000 a year.

Only 6 per cent of respondents said the age pension level of around $40,000 per year was enough to retire with.

Financial planner Darren Howard said the average couple in Sydney would need to earn about $85,000 per annum combined to retire comfortably given the ongoing cost of living crisis. 

Craig McDonald, owner of CBM Mortgages, said: “We speak to all our clients about their retirement and their superannuation position and how that will look when they enter into retirement. 

“We recommend they speak to a financial planner to ensure they are putting those steps in place early.”

Image credits: Getty Images

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