Retirement Incomes....will you be in the top 3%!

Based on the above...the stats above do not make sense....

 

Mine is for retirees only. Source is the IPSOS emma survey (n > 8,000).

 

Re the above, don't forget many middle class professional retirees amongst the current crop enjoy the relative certainty and high $ (vs the defined contrib super g'tee) of defined benefit, employer pension plans. These have been phased out for the mostpart in the private sector and are in run-off.

If you're lucky enough to have one of these, and then invested well through a couple of property cycles from early '90s to mid 2010s, you could well see a $100k+ retiree income.

As these retirees represent a shrinking pool, I think you'll find that younger generations will go significantly backwards (slowing property growth, flat incomes, weak stock markets, low yielding fixed income/deposits etc)

 

Can you provide survey....depending on sample there could be statistical error. It look flawed. Currently over 50% of retirees rely on the pension so it does not make sense.

 

Kinda does make sense with this: 63% of them have a household income below $50k.

Edit: 31% sub $30k income.

It's syndicated research, they don't share the questionnaire but the sample (just for retirees) is over 8,000, and data is always weighted to ensure accurate gender, age, geographic distribution etc.

 

Nearly all of my friends that are now retired receive some level of part pension.

 

Again this adds up to 99% not 100%, so what happened to missing 1%?

 

The Royal Commission couldn't discover that either.

I did go to a pre-planning seminar with my super mob this evening, so tick... it looks like retirement will be ruff to say the least no-name cask wine, flights on Tiger Air, Country DisComfort motels, dumpster diving and no chance of the pension.

Some interesting & simple strategies to put in place to boost super & be tax effective.

Some of the interesting points to note:

• Plan what you're going to do in retirement (hit retirement age and do what?), doesn't matter what age you want to retire, how are you going to fill in your days?
• How do they calculate how much you'll need (& for what type of lifestyle) including allowance for CPI
• How long it will last
• Will super & all of your other assets generate sufficient income or will it be supplementing the pension
• Risk appetite and its effect on your super balance.

Most super funds will run these types of free seminars and you may want to avail yourself to them to start the grey matter working.

 

Wow that would mean assets under 860k...as a couple or around 560k as a single.

In the future a lot less people will qualify as more people would have been in the super system longer. So they might have 500k in super and 1 investment property worth say 400k fully paid off.

If they would get say 4% return that would just replace the pension but none of the discounts....

 

That 1% was purposely not shown to avoid upsetting people who are not in this top bracket
That 1% earn $5m + pa

 

The percentages are rounded to whole numbers, which often results in a sum that is 99% or 101%.

for example, it might be:

• 63.4% of them have a household income below $50k.
• 20.2% $50k - $80k
• 10.9% $80k- $130k
• 4.3% $130k - $250k
• 1.0% $250k+

 

For what it is worth (not much) you can use two measures.

First is the Age Pension and as is well known it is subject both income and asset test limits. So if you crack more than that amount at least you're not right down there. However, I have encountered a number (not many) who are comfortable but they own their home. If you had to rent it'd be a different ball game altogether I reckon.

Second is the ASFA view on income required:

Age around 65 - Modest lifestyle

Single: $28,000
Couple: $40,000

Age around 65 - Comfortable

Single: $44,000
Couple: $62,000

Assumes home ownership.

Some commentators (Ross Gittens and Peter Martin to name but two) who question the ASFA's numbers and even I do. No way do I spend $15 a week on haircuts, $11 on Netflix or $20 on booze. The breakdown of the figures is on the ASFA's website.

My income is way North of the comfortable level for a couple and I'm single (staying that way too so sorry ladies ) so I tend to view published numbers with a degree of caution - especially from organisations which may have a degree of self-interest involved.

 

... + don’t like the concept of delayed gratification (want it now), don’t want to put in the effort (they think a 35-hour week is a full work week), feel they are entitled to everything, ...

 

hi guys, im looking for some advice, who or what are the best for someone to speak with in terms of planning for retirement ? as in ive heard it can be better (depending on your time frame and earning potential) to have less in super so you can collect more of the pension etc. just different things like that. this is not for me, its for some friends who are about 10 years off retirement, they own there home but havnt really planned at all for retirement, maybe only 100k super. plus side is i suppose they have about 10 years to put all excess into super (or whatever would be best)

 

Same here but I do spend at least $46 a week on wine .

 

Geez given your taste in wine that’s verging on being a non-drinker.

 

Truncation and rounding from the application that spits out the data.

 

@frankjeager I would suggest your friends attend a Planning For Retirement seminar at their super fund, see comment above. That will give them a few ideas to start thinking about themselves. Other good books to read and do the activities will be available from Noel Whittaker's website. Noel Whittaker



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