Latest news with #RossAckland
Yahoo
2 days ago
- Business
- Yahoo
‘Figure just thrown around': Super myth busted
Older Australians are likely closer than they think to having a comfortable retirement, with workers often overestimating just how much they will need before they finish their careers. The majority of workers believe they will need at least $1m in their superannuation fund in order to have a comfortable retirement, new research AustralianSuper research reveals. AustralianSuper head of advice Ross Ackland said 94 per cent of retirees would finish their careers with far less than $1m in superannuation, and despite the fear-based narrative, that would still be enough to live a comfortable life. 'You might have heard you need $1m – it's the figure that's often thrown around as the financial retirement ideal, but the truth is, there's no one-size-fits-all,' he said. 'A comfortable retirement will look different for everyone.' Figures released earlier in the year by Super Consumers Australia showed a single person needed about $310,000, while a couple needed $420,000 to achieve a 'medium lifestyle in retirement'. But this has two major caveats; the retiree owns their own home and they go on the aged-based pension at some point throughout their retirement. The Association of Superannuation Funds of Australia has also run the figures, saying singles living a modest lifestyle will spend $32,930 a year, again assuming the retiree owns their own home. For Aussies wanting a 'comfortable' standard, singles need a higher amount of $51,814 and couples $73,031 a year. This would require a single superannuation member to have $595,000 in their accounts, while couples need to have $690,000. Retiree Warren Morrison said after a career in local government, banking and media, he was able to retire in 2022 at aged 64 with far less than 'a million bucks in super'. 'I worked out what I'd need day to day, figured out what brought me joy and built my retirement around that, eventually leaving the workforce with around $350,000 in superannuation,' he said. 'I'm not sitting still – I'm officiating weddings, hosting trivia nights, doing a bit of acting and even judging roller skating competitions. 'It's not about being rich, it's about being purposeful. I still have my coffee and cake with mates. I'm careful, but I'm not missing out.' AustralianSuper points out funds in superannuation are just part of what retirees will have when they finish work, with savings, other assets, lifestyle expectations and the pension all playing a role in how Australians will be able to spend the latter years of their lives. 'We know superannuation is incredibly important and encourage members to make extra contributions where appropriate, but super is only one piece of the retirement puzzle,' Mr Ackland said. 'It's also important to remember that our superannuation system is still maturing and will continue to deliver stronger outcomes for more Australians.' Compulsory super was only introduced in 1992 and at much lower contribution rates than we have today. The superannuation guarantee has also been on the rise in recent years and, from July 1, 2025, will climb to 12 per cent of a worker's income.
West Australian
2 days ago
- Business
- West Australian
‘Figure just thrown around': Aussies need far less than $1m for comfortable retirement
Older Australians are likely closer than they think to having a comfortable retirement, with workers often overestimating just how much they will need before they finish their careers. The majority of workers believe they will need at least $1m in their superannuation fund in order to have a comfortable retirement, new research AustralianSuper research reveals. AustralianSuper head of advice Ross Ackland said 94 per cent of retirees would finish their careers with far less than $1m in superannuation, and despite the fear-based narrative, that would still be enough to live a comfortable life. 'You might have heard you need $1m – it's the figure that's often thrown around as the financial retirement ideal, but the truth is, there's no one-size-fits-all,' he said. 'A comfortable retirement will look different for everyone.' Figures released earlier in the year by Super Consumers Australia showed a single person needed about $310,000, while a couple needed $420,000 to achieve a 'medium lifestyle in retirement'. But this has two major caveats; the retiree owns their own home and they go on the aged-based pension at some point throughout their retirement. The Association of Superannuation Funds of Australia has also run the figures, saying singles living a modest lifestyle will spend $32,930 a year, again assuming the retiree owns their own home. For Aussies wanting a 'comfortable' standard, singles need a higher amount of $51,814 and couples $73,031 a year. This would require a single superannuation member to have $595,000 in their accounts, while couples need to have $690,000. Retiree Warren Morrison said after a career in local government, banking and media, he was able to retire in 2022 at aged 64 with far less than 'a million bucks in super'. 'I worked out what I'd need day to day, figured out what brought me joy and built my retirement around that, eventually leaving the workforce with around $350,000 in superannuation,' he said. 'I'm not sitting still – I'm officiating weddings, hosting trivia nights, doing a bit of acting and even judging roller skating competitions. 'It's not about being rich, it's about being purposeful. I still have my coffee and cake with mates. I'm careful, but I'm not missing out.' AustralianSuper points out funds in superannuation are just part of what retirees will have when they finish work, with savings, other assets, lifestyle expectations and the pension all playing a role in how Australians will be able to spend the latter years of their lives. 'We know superannuation is incredibly important and encourage members to make extra contributions where appropriate, but super is only one piece of the retirement puzzle,' Mr Ackland said. 'It's also important to remember that our superannuation system is still maturing and will continue to deliver stronger outcomes for more Australians.' Compulsory super was only introduced in 1992 and at much lower contribution rates than we have today. The superannuation guarantee has also been on the rise in recent years and, from July 1, 2025, will climb to 12 per cent of a worker's income.
Perth Now
2 days ago
- Business
- Perth Now
‘Figure just thrown around': Super myth busted
Older Australians are likely closer than they think to having a comfortable retirement, with workers often overestimating just how much they will need before they finish their careers. The majority of workers believe they will need at least $1m in their superannuation fund in order to have a comfortable retirement, new research AustralianSuper research reveals. AustralianSuper head of advice Ross Ackland said 94 per cent of retirees would finish their careers with far less than $1m in superannuation, and despite the fear-based narrative, that would still be enough to live a comfortable life. 'You might have heard you need $1m – it's the figure that's often thrown around as the financial retirement ideal, but the truth is, there's no one-size-fits-all,' he said. 'A comfortable retirement will look different for everyone.' Australians might be able to retire with less in their super than they think. NewsWire / Nicholas Eagar Credit: NewsWire Figures released earlier in the year by Super Consumers Australia showed a single person needed about $310,000, while a couple needed $420,000 to achieve a 'medium lifestyle in retirement'. But this has two major caveats; the retiree owns their own home and they go on the aged-based pension at some point throughout their retirement. The Association of Superannuation Funds of Australia has also run the figures, saying singles living a modest lifestyle will spend $32,930 a year, again assuming the retiree owns their own home. For Aussies wanting a 'comfortable' standard, singles need a higher amount of $51,814 and couples $73,031 a year. This would require a single superannuation member to have $595,000 in their accounts, while couples need to have $690,000. Retiree Warren Morrison said after a career in local government, banking and media, he was able to retire in 2022 at aged 64 with far less than 'a million bucks in super'. 'I worked out what I'd need day to day, figured out what brought me joy and built my retirement around that, eventually leaving the workforce with around $350,000 in superannuation,' he said. 'I'm not sitting still – I'm officiating weddings, hosting trivia nights, doing a bit of acting and even judging roller skating competitions. 'It's not about being rich, it's about being purposeful. I still have my coffee and cake with mates. I'm careful, but I'm not missing out.' Workers are being urged to figure out how much their lifestyle costs. NewsWire / Emma Brasier Credit: News Corp Australia AustralianSuper points out funds in superannuation are just part of what retirees will have when they finish work, with savings, other assets, lifestyle expectations and the pension all playing a role in how Australians will be able to spend the latter years of their lives. 'We know superannuation is incredibly important and encourage members to make extra contributions where appropriate, but super is only one piece of the retirement puzzle,' Mr Ackland said. 'It's also important to remember that our superannuation system is still maturing and will continue to deliver stronger outcomes for more Australians.' Compulsory super was only introduced in 1992 and at much lower contribution rates than we have today. The superannuation guarantee has also been on the rise in recent years and, from July 1, 2025, will climb to 12 per cent of a worker's income.
News.com.au
2 days ago
- Business
- News.com.au
‘Figure just thrown around': Aussies need far less than $1m for comfortable retirement
Older Australians are likely closer than they think to having a comfortable retirement, with workers often overestimating just how much they will need before they finish their careers. The majority of workers believe they will need at least $1m in their superannuation fund in order to have a comfortable retirement, new research AustralianSuper research reveals. AustralianSuper head of advice Ross Ackland said 94 per cent of retirees would finish their careers with far less than $1m in superannuation, and despite the fear-based narrative, that would still be enough to live a comfortable life. 'You might have heard you need $1m – it's the figure that's often thrown around as the financial retirement ideal, but the truth is, there's no one-size-fits-all,' he said. 'A comfortable retirement will look different for everyone.' Figures released earlier in the year by Super Consumers Australia showed a single person needed about $310,000, while a couple needed $420,000 to achieve a 'medium lifestyle in retirement'. But this has two major caveats; the retiree owns their own home and they go on the aged-based pension at some point throughout their retirement. The Association of Superannuation Funds of Australia has also run the figures, saying singles living a modest lifestyle will spend $32,930 a year, again assuming the retiree owns their own home. For Aussies wanting a 'comfortable' standard, singles need a higher amount of $51,814 and couples $73,031 a year. This would require a single superannuation member to have $595,000 in their accounts, while couples need to have $690,000. Retiree Warren Morrison said after a career in local government, banking and media, he was able to retire in 2022 at aged 64 with far less than 'a million bucks in super'. 'I worked out what I'd need day to day, figured out what brought me joy and built my retirement around that, eventually leaving the workforce with around $350,000 in superannuation,' he said. 'I'm not sitting still – I'm officiating weddings, hosting trivia nights, doing a bit of acting and even judging roller skating competitions. 'It's not about being rich, it's about being purposeful. I still have my coffee and cake with mates. I'm careful, but I'm not missing out.' AustralianSuper points out funds in superannuation are just part of what retirees will have when they finish work, with savings, other assets, lifestyle expectations and the pension all playing a role in how Australians will be able to spend the latter years of their lives. 'We know superannuation is incredibly important and encourage members to make extra contributions where appropriate, but super is only one piece of the retirement puzzle,' Mr Ackland said. 'It's also important to remember that our superannuation system is still maturing and will continue to deliver stronger outcomes for more Australians.' Compulsory super was only introduced in 1992 and at much lower contribution rates than we have today. The superannuation guarantee has also been on the rise in recent years and, from July 1, 2025, will climb to 12 per cent of a worker's income.
Sydney Morning Herald
6 days ago
- Business
- Sydney Morning Herald
Retiring without $1 million? Don't worry, so is everyone else
As Ross Ackland, AustralianSuper's Head of Advice and Guidance, puts it: 'A $1 million superannuation balance is often thrown around as a benchmark, but it's an arbitrary figure. The reality is, what you need in retirement depends far more on your lifestyle expectations, your spending habits and your access to other income sources. Loading 'The smarter approach is to reverse-engineer it. Start by understanding your current cost of living, then estimate what might change in retirement – things like commuting costs might drop off, but healthcare might increase. Once you know your target annual income, you can build a strategy to generate that.' Exactly. That's the smarter approach - reverse-engineer your retirement. But how do you actually do that? Start by getting curious. Think about what you want your life to look like. Understand your needs and your hopes and dreams. Then, start putting the pieces together. Consider these questions: What does a good life actually cost you now? Pause and build a budget based on how you live today, before retirement. When you understand what you already spend to live well, you get a clearer picture of what you might need in retirement. Don't just lean on benchmarks for how much people spend in retirement, get a grip on your own reality. That builds confidence. What's likely to change when you stop working? You'll probably spend less on commuting, takeaway lunches or work clothes, but possibly more on travel, hobbies or health costs. Think in terms of trade-offs, not cutbacks. Unless you have to, don't shrink your budget just to hit an arbitrary target. Design a life you want to live – and can afford to. What income will you have when you retire? Think of your retirement income in layers - different streams that kick in at different stages, depending on your age and choices: Personal savings which is accessible before you reach retirement or pension age A transition to retirement income stream which can be accessed from 60, while you're still working if you don't meet the condition of release. Superannuation income or lump sum drawdowns, from 60 when you reach the condition of release, or 65 if you keep working. The age pension which only becomes accessible from 67 onwards; and Part-time or casual work which can be a part of your life in retirement. If you choose to keep working, there's no restriction on how long you might want to. Loading Explore how much you can safely draw from your super each year. Use a retirement income calculator to see how your income layers can work together. The MoneySmart Retirement Planner is a great (and free) place to start. Most super funds also offer smart tools tailored to their members. Once you've got a sense of how much income you'll need, you can start building a strategy to hit that goal before you retire. I'm pretty sure for most people, it won't be $1 million. And remember, planning for retirement isn't about chasing a number – it's about making your life and your money work together, on your terms. If you don't have enough yet, make a plan for how you'll close the gap. That's where the real power lies.
