You’ve retired and now markets have dropped. What does this mean for your retirement savings?
Everyone is different and how much you need to live comfortably in retirement will depend on a range of factors including whether you are married or single, if you have dependants, how you plan to spend your time, your hobbies and interests just to name a few.
The Association of Superannuation Funds of Australia (ASFA) has put together a guide which shows how much you will need for a comfortable standard of living and the types of things you may need to spend your money on. They have estimated that retired singles will need to spend $38,611 per year and couples $51,727 per year to live comfortably.
To help you work out if you have enough for retirement, read OnePath’s Retirement fundamentals (623kb PDF) booklet. It’s also a good idea to talk to your financial adviser who can help you with tips and strategies to improve your retirement savings.
How much you will need to live comfortably in retirement will depend on a range of things. To work out if you have enough to retire there are three things you need to think about:
It is important to be mindful that people are generally living longer and it is not unusual to live more than 20 years in retirement. So when doing your calculations dont underestimate how long you will need to rely on your retirement savings.
Whether you are close to retirement and think you have enough, or whether you are going to work for a few more years, take a look at OnePath’s Retirement fundamentals (623kb PDF). Our helpful checklist can help you make sense of the things you need to consider for retirement.
You should also talk to your financial adviser who can guide you through the range of options and strategies that are available to help you save more money for your retirement and reduce the amount of tax you pay.
With share market volatility now a part of daily news, it’s only natural to be concerned about how the fluctuations might be affecting the value of your investments. It can also be tempting to move your money into less risky investments. But selling or switching investments during times of volatility can mean you sell at a reduced price and miss out on gains when markets rebound. So before you make any decisions about moving your money it is important to seek quality advice.
Sit down with your financial adviser and review the plan you have in place. Together you should assess whether that plan still meets your long term needs and goals and adjust your investments accordingly. Your financial adviser can also help you with tax and other strategies to make the most of your retirement savings.
This has been provided for general information purposes only. It does not purport to recommend any particular adviser or provide you with financial advice. In addition to seeking financial advice, potential investors must always read the Product Disclosure Statement for the relevant product before making an investment decision.