Su­per ac­cess well pre­served

Western Suburbs Weekly - - Business - Troy.MacMil­lan@twd.com.au Troy MacMil­lan on De­sign­ing Wealth

Q: I was re­cently ad­vised that I can­not ac­cess my su­per, even though I’m in my early 50s. Is this true, as I thought that I could? I’m also wor­ried that I will not have enough to live com­fort­ably for my re­tire­ment and I’m con­cerned at how long I will need it all to last. Mur­ray - Su­bi­aco A: If you plan to re­tire early, the su­per­an­nu­a­tion preser­va­tion age (when you can ac­cess your su­per) is slowly in­creas­ing.

It was 55 for many peo­ple, but now it is phas­ing grad­u­ally to age 60 for those born af­ter June 30, 1964.

If you have enough money saved up, you should be able to re­tire and ac­cess your su­per at that point.

So you can (prob­a­bly) re­tire at 60 and ac­cord­ing to re­cent data, you’ll need around $42,000 a year to live com­fort­ably, but how many years will you need to plan for?

In 2011, the Aus­tralian Bureau of Sta­tis­tics re­ported that the resid­ual life ex­pectancy (how many more years you can ex­pect to live) for 65-yearolds was 19.1 years for men and 22 years for women.

That fig­ure had in­creased for both sexes by ap­prox­i­mately 10 years over the pre­vi­ous decade.

To il­lus­trate this, if you are 55 years old now, in 10 years time you can ex­pect to need sav­ings for around 21 years if you are a man and 24 years if you are a woman.

To en­joy a com­fort­able re­tire­ment from age 65, men will need at least $882,000 and women will need even more: $1.008 mil­lion.

Tak­ing the av­er­age resid­ual age of men and women, a cou­ple would need $1.305 mil­lion for 22.5 years of com­fort­able re­tire­ment.

A study in 2010 showed that the av­er­age su­per­an­nu­a­tion bal­ance for Aus­tralian men was $198,000 and for women, it was only $112,000!

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