Numbeo estimates that a single person in Berlin would need over €726 a month to live, excluding rental costs. For a couple it’s $61,909. The age pension is for Australians over the age of 65 who meet the requirements of an income and asset test. What is the current suggested level of savings in Australia? Learn more about the transfer balance cap. Make sure to have enough in your nest egg for tea bags, though – so your partner doesn’t get mad. Please enable JavaScript in order to get the best experience when using this site. Following the first rule, if you spend $20,000 a year, you’ll need about $500,000 to retire comfortably – a number that seems a lot more attainable than the $1 million mark. This retirement age is going up in the coming years, set to increase to 70 for those born after 1965, meaning you may have to wait longer than your parents before enjoying a helping hand from the state. Our laid-back lifestyle, fabulous beaches and the black gold that is Vegemite are all top reasons to remain in Oz. If you don’t, you can double that just because you still need to pay rent, or something similar. If you own your own home, the Australian Securities and Investments Commission's MoneySmart website suggests that you will need about two-thirds of the income you had before you left your job, in order to maintain the same standard of living. Since that equates to anywhere from $6,000 – $12,500 a year just on food, it’s clear your eating habits could take a bite out of your super savings. Virgin Money Super is issued by Mercer Superannuation (Australia) Limited (MSAL) ABN 79 004 717 533 AFSL 235906 as trustee of the Mercer Super Trust. Going by the second rule (using a median individual income of about $35,000), you arrive at just over $600,000 need for retirement (70 percent X 35,000 + 25 years). Discussions should include future aged care – even though it may seem a long way off. This means you … This calculator provides a prediction based on the most common lifestyle factors affecting the income you need for retirement in Australia. If you’re unsure about your future costs it’s wise to over-estimate your potential expenses, that way you have a bit of a buffer in case things don’t quite go to plan. It is dependent on both your current lifestyle and the lifestyle you want to live while retired. It’s fine to fantasise about retirement days blissfully filled with café lunches, exotic travel and hobbies – but you need the funds to back it up. So if you estimate $60,000 per year then you will need $900,000. However, figuring out how much you need for retirement is really just a case of looking at all the pieces of the superannuation puzzle. 280884 of Virgin Money Financial Services Pty Ltd ABN 51 113 285 395 AFSL 286869. Recent figures from the June quarter 2019 outline how much both singles and couples could expect to spend for both a modest and comfortable lifestyle per year of retirement: A modest lifestyle is defined as being able to just “afford fairly basic activities”. To generate $20k of dividend income, you would need around $350k of savings. Terms, conditions, limits and exclusions apply. Putting away a little extra cash now can make a big difference down the track to your retirement income.Credit: Putting away a little extra now can make a big difference down the track. Income Protection Insurance and Life Insurance: is distributed by TAL Direct Pty Limited ABN 39 084 666 017 AFSL 243260. Retiring in the Lucky Country is a worthy goal for not just Australians, but foreigners too. If you don’t make that decision now and save appropriately, it may be that your final savings will decide the lifestyle you’ll live for you. How much money might I need to retire? When you reach retirement age, with a bit of luck you’ll still be physically capable and moving around on your own. A common rule of thumb is that if you want to retire at 60, you will need about 15 times the amount you have calculated for your annual after-tax retirement expenses. This rule estimates that you will need between 70% and 100% of your pre-retirement income in retirement: 70% if you are typical and do not have a mortgage, and up to 100% if you are still paying a hefty mortgage plus other atypical expenses while retired. How much does it cost to buy a house or rent?