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Been adding an extra $200 per week to my super for the past 5 years on top of the employer contribution. Amazing how much it has grown with 9% compounding.
This video and all similar videos always ignore single biggest possible expense in retirement and that is age care costs. Would like to see a video on how to financially plan for going in to age care for one or both people in a couple..
It's a good point - I think it's because it has such a broad cost from 10s to 100s of thousands a year per person depending on what you are happy with - how do you 'plan' for that ? - if you want the possibility of the best care then make sure you have at least 3 years for each person along those numbers - it is such a big cost potentially that it could easily derail your plans and keep you working until way later than you ultimately needed to - do you want to factor that in ?
@@fishfullnessyou need to factor it in, but it's not necessarily as simple as add 3 years worth for each person - if you are last man standing and you own your house then that could be a way to fund age care. it's trickier if one of you goes into care and the other lives in the house. I do find it frustrating that all these videos just completely ignore this retirement expense in their plans. Age care is the reason many retirees don't spend down their funds.
I think for most people super won’t work out that well Fundamentally it’s kind of flawed Taking it back to basics you are trying to transfer your productivity into there future For which super or money is used However this has created too much money looking for a home leading to over inflated markets So my advice is too look after your health and hence maintain your productivity Try work on establishing a good work life balance This will give you more options in a uncertain future And yer use salary sacrifice it’s very generous Enjoy look forward to life not retirement
One side of the coin is that superannuation contributions are enjoyed by Blackrock and Vanguard during periods of almost whole people's lives while other side of argument can be that most people given the chance not to have SUPER but the money would spend it. Similar to argument that not paying health private insurance but putting aside same amount and invest is better than paying private health insurance.
Have just retired at age 58- do some consulting now for 5 hours a week to cover fuel, food and some bills. I have $300k cash to live on for a 3-4 years and have $900k in super which should grow to a million in 3-4 years time. We own our home and will have a very good lifestyle now through retirement. Also will be able to get state pension if my super runs out - do you really need much money when your 85 or so? My parents in law probably spend less than $30k a year and are happy with life at age 85 or so
Sounds like you had a fairly well paid Professional occupation. 5 hours a week consulting, can pay for all your food, fuel & pay some bills? 😳 And you think you might spend your million or so & then qualify for a tax payer funded pension? 🤔
@@pacapaca6307 I was making $120k a year wage and $180k a year in profits. I make $500 a week for 5 hours worth of consulting which covers food and petrol. IF my super runs down to $399,000 as a married couple we qualify for the pension in Australia- it’s what the system is currently set up for. But doubt my kids will have such a good deal
To live comfortably at the same standard you did while working I would say you need to own your own home and have about 1 mil in super as a couple. That gives you the option to buy an investment property and collect rent and possibly still get a reduced pension. If you have kids and want to set them up so they have same or better standard of living you did will need to own you own house and have about 2mil. Basically owning a house outright is the key. Units are different as strata fees can be up to 2k a quarter and really hurt your cash flow.
For a couple you need at least 1M. At least 60K per year for a couple and allow for 10% inflation. This is assuming you own your own home which is a big factor.
Don't forget to consider the costs: there's maintenance, strata (if a unit), council fees, etc. plus the opportunity cost of not investing the equity in the house/unit.
@@timothydevries383 we own our own home as of age 47 (8 years ago), which is great, however, we started a family late and now have 12 yr old twin boys in grade 7 and we will be retiring when they are in grade 11. Most people have their kids off their hands by the time they retire, and this is the one thing we didn’t count on when we were planning our TTR… Oh well, swings and roundabouts I guess, but had we not paid off the house, there is no way we’d be retiring at 60!
@@timothydevries383 Totally agree 1000% and many are selling up in the cities and buying a house in rural communities and still have 300k to 500k after they move which eliminates the cost of living crisis for them
Yep. The whole system is based around home ownership. And it's not going to change. Not when most politicians are property investors. If you have to pay rent or a mortgage on the pension, life is going to be very tough.
If you own your house there’s no way you’d have expenses of >$50k each year of retirement. These numbers are pushed by financial advisers who’s fees are based on % of aum
The most important age factor is your “healthy life expectancy”. You may live to 85 but only be healthy until 75. Between 75 and 85 you will spend very little money I retirement. Most people I know in that age are very inactive and spend very little. So if you retired at 67, you would only have 8 active years in this example.
Yer your too right I hear all these people taking about what they plan to do when they retire. Like big Overseas trips and such Me I plan to live my life to the full salary sacrifice what I can in to super and hopefully it works out
It is a very good point. Most people do not travel overseas after the age of 75 because the cost of travel insurance is prohibitive, and long-haul flights become physically onerous. So good retirement planning includes front loading the expenses for travel, becoming more modest after 75-80 years.
Enjoyed the video. Interestingly 25% of retirees end up dying with alot of their wealth intact. I understand leaving funds for their children is a consideration, but it is a shame that you work your whole life to retire and not enjoy the fruits of your labour.
Part of that is to do with lack of knowledge around aged care provision I suspect. Plus, if you’ve worked & saved all your working life to be able to survive financially in retirement years, there’s an inbuilt caution about “ squandering “ your “ savings”. Particularly if you come from a lower socioeconomic background.
Hi Crhis, Love your youTube clips, thanks heaps. A question... once you have reached your TBC i.e. $1.9 m can you continue to add "concessional contributions' into an accumulation account? And if yes does it remain at the 15% super account tax rate or does the amount over the TBC get taxed higher
You become reliant on an aged pension. The government decides what you can have. I know of some retirees who have their kids pay some of their bills like Body Corporate because they don’t have enough anymore to cover their expenses.
Thanks @SuperGuy for a great video. Can you please let me know your opinion on my thought. I am 36 and not really interested in buying a property at least now as I have limited deposit, want to stay close to city where my kids study and don't want to buy something crap miles away. I have a pretty high salary. What if I put max 30k super each year until 67 (next 30 years) and keep renting what I want and where I want spending rest on day-to-day pleasures and travels. From my calcs it should be a decent sum by 67 age that should be enough to buy some small unit where I want and still decent sum to produce some passive income. Do you see any red flags in such strategy?
Sounds like a good plan! Whether or not you choose to invest in property or not is a personal preference. When you make contributions into super, your funds can be invested in a more diversified portfolio that can also provide solid returns (with the added tax benefits). The main red flag to consider would be the accessibility of funds (and being required to meet a condition of release).
The expectation that we all have 500,000 in our super balance I query. As a single female who has taken time out for kids and family I could only dream of that amount. At 67 and still working with 140,000 in super can you advise? I know I am not alone in this situation.
My wife worked for 20 years and been off work for the past 10. She has 240k without these big employer contributions. She earns around 9% pa with her super just bumping along. 67 is a bs age Australians dropped the ball on the government raising it from 60.
Just wondering for a couple is $690000 for a couple. I assume that is in today’s terms. If only55 and wife 49, is there a tool that predicts future requirement and takes inflation into account. Thanks
This is really dependent on your personal goals and financial position. I strongly recommend you speak to your financial adviser in relation to this. They should be able to provide you with an indication of the level of funds you will need to fund your desired lifestyle.
Worrying about planning your financial issues after the age of 75 is a bit pointless because you're not spending anything much by then staying around home. If you have your marbles together and physically you hold up it's a total bonus. Better off using most of your funds long before then
A lot of people are still travelling at that age, particularly with escorted tours and cruises. Those things cost a lot of money. Just because you're 75 doesn't mean you're drooling over a jigsaw puzzle in a nursing home.
Sort of agree. I have seen great, grand and now parents and travel and hobby spending slows at 75-80 and after 80 is very little. With our health system you need very little in your 80’s as opposed to the USA where a bulk of your costs are health related.
@@megageek8509 cheers mate. I look around at all the friends I know you are 75 and no overseas travel. Perhaps some local Australian travel. But realistically leading into 80, there is usually little energy and increasing health issues take precedence
Can I ask what makes more sense? Having 2 million in super at retirement and being a non homeowner or 1 million in super at retirement and being a homeowner.
Obviously that completely depends on the value of the house. If the house is worth more than a million, then it's better to be the homeowner, if it's worth less than a million, it's better to have be the non homeowner. I feel like you already knew that, it's basic arithmetic.
Depends maybe on how old you are when you retire, what you want to do in your retirement years. Right now, you might be better off spending $1,000,000 to buy a ( non strata fee) home then you know what your “ costs for shelter” will be & not be at the mercy of being homeless when/if your landlord keeps upping your rent ( because you’re helping to pay of the mortgage on their “ retirement strategy” investment or being evicted for no particularly valid reason. You need secure housing first. If you still have $1,000,000 in Super on top; you’re home & hosed.
1.6 million invested in the stock market will generate $150K/year. Renting a 1.6 million dollar home will cost about $50K/year. So you are throwing away $100K/year to get the aged pension which is $44k/year for couples, brilliant idea... And I'm not even including the other costs associated with owning a home (stamp duty, maintenance, council fees, etc.)
This is probably more relevant for people in their mid 40's or 50 . I strongly believe that aged pension will only be available to a third of the population in a couple of decades from now . The government of the day just won't have the money to pay an aged pension for 70 to 75 % of the population .It will only be reserved for the bottom 3rd of the population , someone who doesn't own a house and still rents , no savings etc . Otherwise you will have to fend for yourself in a couple of decades from now . If someone's in their mid 40's or even 50 now , I think you need a minimum of a million dollars in your super taking inflation into account . Million dollars in 20 years is the same as 400,000 today .
@@PradyVK I remember hearing the same thing 25 years ago. However, I personally think you’re only ‘somewhat correct’ in the fact that they’ll need to make even more changes to make a pension ’less available’ to the general populace. This would mean they have to make a sweeter deal (Eg: less tax on super contributions) to make this plausible, rather than just cutting people off. What this transition looks like right now, I have no idea, but they will have to do something or it’s going to be a nightmare in the long run. Governments just can’t get the fundamentals right to even say they can govern in their own right. Let’s hope they do the right thing mate!
I think the super guarantee will mean over time less and less people will be eligible for a full pension. The pension will end up being for people who fall through the cracks rather than the norm. I haven't done the math but a 20 year old on a modest wage is going to have quite a large super payout at 67.
@@MichaelJanos1024 were starting our twin boys super next year (they turn 13) and start with $5k each and add $5k a year for 10 years. Even if they do nothing, the compound interest will give them $640k by the time they turn 60. It beats just giving them cash and knowing their super will be in good shape long after we’re gone is the best piece of mind we can have.
I would like to see a video on someone who like me is 63 and contemplating stopping work and looking at jobseeker and instead of looking for work volunteering a couple of days a week supplementing with some super and currently have approx $400000 combined with the wife in super. I am looking at getting a full pension so don't plan of living a lavish retirement, only need to be comfortable. I own my own home and do have the option to downsize once I reach the 75 year mark. Even transitioning to retirement by working approx 20 hours a week and supplementing with super.
Dorian was my hope during the bear summer "' last year. I made so many mistakes but also learnt so much from it , and of course, from Hattie. She is my number one when it comes to crypto and TA.
Yer your set 400,000 is heaps if you own your own home That sounds like a good plan to me Try the transitioning to retirement it gives you more options Heaps of really generous tax advantages too I’m not far of your age a I feel the pressure too get everything sorted But I have stopped complaining about work and relaxed a bit started taking a lot more leave I can take it at half pay Now I am enjoying life and work a lot more
Good suggestion. Just turned 60 and can access my super via TTR. At 4% draw down it doubles my take home income, which helps paying off mortgage. Reducing work hours gradually but I still enjoy my work. Have been a widower for 16 years and raised up 3 children up to this point.
If you are on TTR then I believe the govt still grabs 15% of your super earnings in tax - not a good deal. Maybe full retirement is worth considering then both earnings and drawdowns are tax free. Then later you can "change your mind" and decide to go back to work.
Get all of your holidays over and done with BEFORE you hit 70, because then you travel insurance starts to get very expensive. Its a well known fact the longer you live the less money you need to live on. Funny How this video says I need around $72k as a couple when my super tells me I need no more than $60k as a couple, even the super companies dont even know how much you need. ONLY YOU.
Yes, unfortunately insurance premiums do increase with age! I find retirement income needs differ significantly from one person to the next. ASFA provides an estimate for a comfortable and modest lifestyle. This is roughly $48K-$73K p.a. (for couples) and $33K-$52K p.a. (for singles) - for those age 65-84. They estimate that this then reduces from age 85. Hope that helps!
@@Ride_on54 True, but at present the only people spending on consumer goods are probably the “over 50’s/60’s” who have managed to build assets or still working with no mortgage & their kids ( if they had any), are “ out on their own”. Younger ones have truly been schooled in living on credit card debt. 😟
Once you reach 85...your living expenses drop big time. Financial advisor adjust super to cpi. Its a ridiculous amount at 85. So moral of story..if u have a good super nest egg. Spend whilst healthy to get under top pension threshold and then as 85 or after 67..getting as much pension to supplement your super 😂
@@MichaelJanos1024 That's true, but my point is that if you want to live in a home/facility of your choice with the standard of living that you want, it's going to cost you.
@@timjohnun4297 surely there is a moral obligation that if you can avoid being funded by taxpayers then you shall do so. Not go splurging your savings in time to receive money from workers.
@@xkimopye I've worked and paid taxes all my life. I've helped fund politicians' lavish lifestyles, insanely generous super payouts, etc, etc, etc, when I retire (And I haven't yet) I will be claiming every cent I'm entitled to
In liquid assets, I’ve got $860,000 now. I won’t retire until I’m 67, then LSL & AL until 67 1/2. I’m very concerned about not having enough money in my later years. I base this on not owning a home, and having to rent. The basis for this is rent starting at $500 p/w week, and rent increasing at 3% per year for 20 years. Cost of living going up 3% a year for 20yrs starting at $300 p/w. By the time I’m 87, I’m broke.
@@MarkFrost-l3t 860k is more than enough to buy something in a good area out of the major cities I would budget on about 600 k that way you will go straight on to the full pension and all the associated benefits The full pension your own house and approx 300k is pretty well off You will be right I’m worse off than you and I’m worried but not worried because I know it’s easy make you life miserable by over exaggerating things
newbie question if anyone has an answer. I panicked because of stock market news the other day and transferred my entire super portfolio to cash. There were no warnings other than 'this will take 48 hours' once the money transferred it had gone from 436000 to 428000. after trying to fob me off for a reason they eventually told me I had lost $2300 on interest . Anyone have an idea where the rest of the money went?
All you've done is crystalized your losses. Super funds balances can move daily. Mine constantly can go up and down $5-$10K every few days. When the market bounces back and it will. You'll regret the cash move.
@@pauljones7923 hey Paul, without knowing your age or situation, I don’t mean to offend by making assumptions. Firstly, underlying assets you were invested in could’ve been term deposits which were to mature in the future. Early withdrawal fees might have cost you the interest. If I was to guess. Couple of things you can do here: - get yourself a financial education. You will be responsible for managing this wealth as you get older. Although this kind of behaviour will not bode well for you, it is absolutely not difficult to quickly raise your knowledge to a level that will allow you to sleep easy at night with better quality investments, even if the go up and down a bit more than you’re used to. Focus on - understanding what a share and what the share market actually is. - the difference between risk and volatility (super funds rate their investment options via ‘risk’, but actually that just volatility) - risk is closer to the returns you are missing out on by being invested in a substandard asset class, like cash or a standard managed fund offered by super funds. - building a financial goal - figuring out what assets will work best for you to achieve that goal (index funds, LICs, direct shares, property…small group of index funds and LICs are all anyone needs), but the worst option is cash and the second worse option is a super fund that charges high fees and doesn’t allow index fund or LIC investing. They instead have ‘balanced’ ‘growth’ ‘aggressive’ type options. These cost a LOT in fees and under perform simple index funds in a huge way. - when analysing different super funds, it is CRITICAL that you consider the insurance you get through your super and if your job allows you to get insurance at a different fund that has lower fees/better investment options. If not there is a work around that I have to use (keep min balance in industry fund and continue to make my super contributions to that fund, then roll over all but minimum balance to the cheaper super fund that has better investment options) - investment mindset required. If you have a while to go into retirement, as long as your super fund is cheap and is invested in broad market index funds, you don’t need to worry. Also, as your portfolio increases in size, a 1-2% market shift will show much larger numbers. That’s something you’d need to condition yourself for mentally. If you haven’t done so, barefoot investor book is a great place to start. And the whole book has great ideas, but you can start with the chapter on super. The next thing I’ll say is that your super fund provides financial advice. You already pay for this in your fees. So they can provide you with information that you can spend some time digesting. No need to change up what you’re doing straight away. $430k is an excellent super balance when compared to the averages for all ages. You’re doing great.
Through COVID my share portfolio in my SMSF went down 150k. The only regret I had was not having enough cash to buy stocks such as NAB at $15, WBC $14-15, CBA around $75 etc during that time. By 2022 I returned to pre crash position, and in 2024 through constant regular buying my balance is double of any pre-COVID crash. Last FY I got about $85k in dividends. The worst thing to do is to "change it all to cash"
Have you ever thought of doing a video on a Define Benefit so those of us with one can understand them a bit more? Especially when we want to do a TTR style into a pension income stream? Many thanks for the info you’ve given us so far! It has definitely helped us understand so much more as we’re both 55 and looking at retiring at 60. ✌🏻🙌🏻🇦🇺
@@SuperGuyAu Yes…. Please cover DFs please. They are still subject to tax & that makes a difference to whether you work after retirement & a whole bunch of other “ strategies” going into retirement.
You can draw on your Super if you have such a life changing event. Your premiums once spent are gone, if you invest that money into Super ultimately it will grow.
Depends on how inefficient you are. That is not a realistic sum for most people (almost all). But if that's the amount you need to spend to live well, then you do you.
The Australian pension system works by rewarding those who do nothing to plan for their retirement (they get the maximum amount), and by punishing anyone who works, pays taxes, and manages to squirrel away some money.
It actually rewards those who are a couple and own their home and have approx $450k in their super. This is the sweet spot where you maximise the aged pension benefits and also draw down a tax free income from the super fund. You'd get $1600 per fortnight or $41k per year from the aged pension and another $25k from super all tax free
It kind of rewards those who play the game you can hide assets pretty easy if your smart But you have to start early and do it gradually 1 buy a bigger home 2 gold 3 art 4 gift cards with long expiry dates 5 certain overseas banks are not accessible by the Australian government 6 unregistered collectable cars 7 some utilities allow you to prepay bills 8 cash 9 honey it has no self life and goes up in value And heap of other things I haven’t thought about
The problem with statistics is that they're not personal. That 81.5 takes in to account all the people who are expected to die early because of bad choices, misadventure, existing conditions etc. For example, if you have miraculously made it to the age of 80, then your expected lifespan is about 89... The interesting thing is that top-end ages haven't risen much. It's just that more and more people are getting to the 90s, instead of dying earlier.
Looks like my Super could be adequate. 🤔 But with Universal Basic Income ‘rumours’, it really looks like the ‘great reset’ is the complete replacement of Super/Welfare/Pension systems🫣 Say goodbye to lump sums, social credit scores and slave allowances are coming. 😭
super will be cut in half, probably worse, GFC2.0 is upon us soon anyone exposed to tech and risk assets will be returning to work move portfolio to commodities when the bottom comes
I can't work it out because you haven't made any sense. Perhaps you should just admit you have no clue. What happened to your dollar basement in your original comment?
@@MrSouthernlord Firstly 9-12% in super is less than 14% in dollar basement correct! Secondly, because you can't work that out, I , have no sense. This makes the assumption that you're stupid whilst you assume other people have no clue. Grow up, or at least get educated ok
@@Campbell1. What the f**k is dollar basement? You are trying to use terms you don't understand. All you have to look at is inflation compared to returns.
yeah the average person is actually classed as the working poor in Australia. If you go back to the 1950's the middle class income they made back then adjusted for inflation today is closer to $150k
@@davesunderland1026 out of touch how? What should be said is that ‘average Australian’ didn’t plan their retirement early enough and not be saying ‘we don’t have that sort of money’ or ‘he’s out of touch’. My wife and I are on jobs both below 100k a year but have both been scary sacrificing for over 20 yrs, and paid our house off instead of having fancy cars and huge holidays. Combined Super of now $1.3M + own home + one rental property (all paid off) and going to retire at 60. So is he out of touch, or are average Australians just having a whinge because they didn’t do their due diligence/ homework?
@@dadoftwinsau, spot on mate, people don’t plan for their future and it’s everybody else’s fault. I’m 58, own my home, no debt, 2 new cars last year, new caravan this year, retirement in 3 years (61) and will have 1.2M in super and savings to start my big lap of this fabulous country of ours, and support myself and the good wife in retirement.
Hey everyone, thanks for watching! Ready to take control of your retirement? Download our FREE 6-Step Superannuation Check today: www.torowealth.com.au/6-step-super-check/
Been adding an extra $200 per week to my super for the past 5 years on top of the employer contribution. Amazing how much it has grown with 9% compounding.
I plan to do $400 PW which should max it out at 30k PA with employer contributions
Many thanks for the info , All knowledge is good
Enjoy your engaging personality makes for easy viewing
Takes the stress out of timely retirement 👍🏻
Took the words right out of my mouth.
I'm glad to hear this was helpful!
This video and all similar videos always ignore single biggest possible expense in retirement and that is age care costs. Would like to see a video on how to financially plan for going in to age care for one or both people in a couple..
It's a good point - I think it's because it has such a broad cost from 10s to 100s of thousands a year per person depending on what you are happy with - how do you 'plan' for that ? - if you want the possibility of the best care then make sure you have at least 3 years for each person along those numbers - it is such a big cost potentially that it could easily derail your plans and keep you working until way later than you ultimately needed to - do you want to factor that in ?
@@fishfullnessyou need to factor it in, but it's not necessarily as simple as add 3 years worth for each person - if you are last man standing and you own your house then that could be a way to fund age care. it's trickier if one of you goes into care and the other lives in the house.
I do find it frustrating that all these videos just completely ignore this retirement expense in their plans. Age care is the reason many retirees don't spend down their funds.
90% of ones wealth is eroded with EOL care, so won't matter how much money you have at that stage anyway
I think for most people super won’t work out that well
Fundamentally it’s kind of flawed
Taking it back to basics you are trying to transfer your productivity into there future
For which super or money is used
However this has created too much money looking for a home leading to over inflated markets
So my advice is too look after your health and hence maintain your productivity
Try work on establishing a good work life balance
This will give you more options in a uncertain future
And yer use salary sacrifice it’s very generous
Enjoy look forward to life not retirement
One side of the coin is that superannuation contributions are enjoyed by Blackrock and Vanguard during periods of almost whole people's lives while other side of argument can be that most people given the chance not to have SUPER but the money would spend it. Similar to argument that not paying health private insurance but putting aside same amount and invest is better than paying private health insurance.
Have just retired at age 58- do some consulting now for 5 hours a week to cover fuel, food and some bills. I have $300k cash to live on for a 3-4 years and have $900k in super which should grow to a million in 3-4 years time. We own our home and will have a very good lifestyle now through retirement. Also will be able to get state pension if my super runs out - do you really need much money when your 85 or so? My parents in law probably spend less than $30k a year and are happy with life at age 85 or so
Wow, well done, looks like you have set yourself up very nicely!
Sounds like you had a fairly well paid Professional occupation. 5 hours a week consulting, can pay for all your food, fuel & pay some bills? 😳 And you think you might spend your million or so & then qualify for a tax payer funded pension? 🤔
@@pacapaca6307 I was making $120k a year wage and $180k a year in profits. I make $500 a week for 5 hours worth of consulting which covers food and petrol. IF my super runs down to $399,000 as a married couple we qualify for the pension in Australia- it’s what the system is currently set up for. But doubt my kids will have such a good deal
To live comfortably at the same standard you did while working I would say you need to own your own home and have about 1 mil in super as a couple. That gives you the option to buy an investment property and collect rent and possibly still get a reduced pension. If you have kids and want to set them up so they have same or better standard of living you did will need to own you own house and have about 2mil. Basically owning a house outright is the key. Units are different as strata fees can be up to 2k a quarter and really hurt your cash flow.
Im young so home ownership wont be possible. Going to build super and retire overseas
For a couple you need at least 1M. At least 60K per year for a couple and allow for 10% inflation. This is assuming you own your own home which is a big factor.
Yer not really for the first 10 to 15 years you will hopefully be active and spending but after this the pension will be enough
Ive said it time and time again. Get a house paud off. A unit. Anything. Once you have that you are pretty much gunna be ok.
Don't forget to consider the costs: there's maintenance, strata (if a unit), council fees, etc. plus the opportunity cost of not investing the equity in the house/unit.
The most important factor for Australians is if you own your home outright or not at retirement.
100%. It's imperative to own your own home prior to retirement.
@@timothydevries383 we own our own home as of age 47 (8 years ago), which is great, however, we started a family late and now have 12 yr old twin boys in grade 7 and we will be retiring when they are in grade 11. Most people have their kids off their hands by the time they retire, and this is the one thing we didn’t count on when we were planning our TTR…
Oh well, swings and roundabouts I guess, but had we not paid off the house, there is no way we’d be retiring at 60!
@@timothydevries383
Totally agree 1000%
and many are selling up in the cities and buying a house in rural communities and still have 300k to 500k after they move which eliminates the cost of living crisis for them
Yep. The whole system is based around home ownership.
And it's not going to change. Not when most politicians are property investors.
If you have to pay rent or a mortgage on the pension, life is going to be very tough.
Yes, owning your home outright at retirement can definitely help!
If you own your house there’s no way you’d have expenses of >$50k each year of retirement. These numbers are pushed by financial advisers who’s fees are based on % of aum
Incorrect - I own my own home and require minimum of $75k p/a amd I spent own a car
@@gloriasaliba3395 That’s absurd, you obviously live an extravagant life in which case super would be the least of your concerns
@@Corey-pd3mi Each to their own. Some people like to travel for example, or help out family.
The most important age factor is your “healthy life expectancy”. You may live to 85 but only be healthy until 75. Between 75 and 85 you will spend very little money I retirement. Most people I know in that age are very inactive and spend very little. So if you retired at 67, you would only have 8 active years in this example.
Yer your too right I hear all these people taking about what they plan to do when they retire.
Like big Overseas trips and such
Me I plan to live my life to the full salary sacrifice what I can in to super and hopefully it works out
It is a very good point. Most people do not travel overseas after the age of 75 because the cost of travel insurance is prohibitive, and long-haul flights become physically onerous. So good retirement planning includes front loading the expenses for travel, becoming more modest after 75-80 years.
Very true 60 to 70 is go go years, 70 to 80 is slow go years, 80 plus will probably be no go years
Enjoyed the video.
Interestingly 25% of retirees end up dying with alot of their wealth intact. I understand leaving funds for their children is a consideration, but it is a shame that you work your whole life to retire and not enjoy the fruits of your labour.
Part of that is to do with lack of knowledge around aged care provision I suspect. Plus, if you’ve worked & saved all your working life to be able to survive financially in retirement years, there’s an inbuilt caution about “ squandering “ your “ savings”. Particularly if you come from a lower socioeconomic background.
Hi Crhis, Love your youTube clips, thanks heaps. A question... once you have reached your TBC i.e. $1.9 m can you continue to add "concessional contributions' into an accumulation account? And if yes does it remain at the 15% super account tax rate or does the amount over the TBC get taxed higher
What actually happens if you run out of super? What options do you have?
There are no options. Don't run out of super.
Crime worse comes to worse you go to goal
What have you got to lose go out with a bang
You become reliant on an aged pension. The government decides what you can have. I know of some retirees who have their kids pay some of their bills like Body Corporate because they don’t have enough anymore to cover their expenses.
You will then revert to an old age pension. Not sure the amount but it would be enough to eat and pay the skyrocketing bills.
Thanks @SuperGuy for a great video. Can you please let me know your opinion on my thought. I am 36 and not really interested in buying a property at least now as I have limited deposit, want to stay close to city where my kids study and don't want to buy something crap miles away. I have a pretty high salary. What if I put max 30k super each year until 67 (next 30 years) and keep renting what I want and where I want spending rest on day-to-day pleasures and travels. From my calcs it should be a decent sum by 67 age that should be enough to buy some small unit where I want and still decent sum to produce some passive income. Do you see any red flags in such strategy?
Sounds like a good plan! Whether or not you choose to invest in property or not is a personal preference. When you make contributions into super, your funds can be invested in a more diversified portfolio that can also provide solid returns (with the added tax benefits). The main red flag to consider would be the accessibility of funds (and being required to meet a condition of release).
The expectation that we all have 500,000 in our super balance I query. As a single female who has taken time out for kids and family I could only dream of that amount. At 67 and still working with 140,000 in super can you advise? I know I am not alone in this situation.
If you own your own place, then you should be ok on the pension.
My wife worked for 20 years and been off work for the past 10. She has 240k without these big employer contributions. She earns around 9% pa with her super just bumping along. 67 is a bs age Australians dropped the ball on the government raising it from 60.
I wish the contribution cap taxed at 15% be higher at 40,000 - 45,000
Time to find a Sugar Daddy
@@galloper1An 80 year young man? 😛
great videos; but at only a normal 5% return, a unit or dividends. You will need at least 1,000,000 to earn 50,000 a year. Or am I missing something.
Just wondering for a couple is $690000 for a couple. I assume that is in today’s terms. If only55 and wife 49, is there a tool that predicts future requirement and takes inflation into account. Thanks
That’s the figure for retirement at 67yrs. If you retire at 60 you need much more
We don’t think we are qualify for Australian pension. So how much do we need if we retire at 67? Our supper is in fixed term deposit only
Seek professional financial advice. This is just general information.
This is really dependent on your personal goals and financial position. I strongly recommend you speak to your financial adviser in relation to this. They should be able to provide you with an indication of the level of funds you will need to fund your desired lifestyle.
lol work all your life waiting for super. Gagaga wow.
Worrying about planning your financial issues after the age of 75 is a bit pointless because you're not spending anything much by then staying around home. If you have your marbles together and physically you hold up it's a total bonus. Better off using most of your funds long before then
A lot of people are still travelling at that age, particularly with escorted tours and cruises.
Those things cost a lot of money.
Just because you're 75 doesn't mean you're drooling over a jigsaw puzzle in a nursing home.
@@w0mblemania some. But a lot I already pushing up daisies. Or having health issues. We need to live it while we still have it
Sort of agree. I have seen great, grand and now parents and travel and hobby spending slows at 75-80 and after 80 is very little. With our health system you need very little in your 80’s as opposed to the USA where a bulk of your costs are health related.
@@megageek8509 Have you seen how much aged care costs?
@@megageek8509 cheers mate. I look around at all the friends I know you are 75 and no overseas travel. Perhaps some local Australian travel. But realistically leading into 80, there is usually little energy and increasing health issues take precedence
Can I ask what makes more sense? Having 2 million in super at retirement and being a non homeowner or 1 million in super at retirement and being a homeowner.
Obviously that completely depends on the value of the house. If the house is worth more than a million, then it's better to be the homeowner, if it's worth less than a million, it's better to have be the non homeowner. I feel like you already knew that, it's basic arithmetic.
Depends maybe on how old you are when you retire, what you want to do in your retirement years. Right now, you might be better off spending $1,000,000 to buy a ( non strata fee) home then you know what your “ costs for shelter” will be & not be at the mercy of being homeless when/if your landlord keeps upping your rent ( because you’re helping to pay of the mortgage on their “ retirement strategy” investment or being evicted for no particularly valid reason. You need secure housing first. If you still have $1,000,000 in Super on top; you’re home & hosed.
Go for it. I have no plans to buy when I retire, will rent until I no longer want to move.
Buy a house for about 1.6 million so you can get the pension
Downsize when you need more money
1.6 million invested in the stock market will generate $150K/year. Renting a 1.6 million dollar home will cost about $50K/year. So you are throwing away $100K/year to get the aged pension which is $44k/year for couples, brilliant idea...
And I'm not even including the other costs associated with owning a home (stamp duty, maintenance, council fees, etc.)
This is probably more relevant for people in their mid 40's or 50 . I strongly believe that aged pension will only be available to a third of the population in a couple of decades from now . The government of the day just won't have the money to pay an aged pension for 70 to 75 % of the population .It will only be reserved for the bottom 3rd of the population , someone who doesn't own a house and still rents , no savings etc . Otherwise you will have to fend for yourself in a couple of decades from now . If someone's in their mid 40's or even 50 now , I think you need a minimum of a million dollars in your super taking inflation into account . Million dollars in 20 years is the same as 400,000 today .
@@PradyVK I remember hearing the same thing 25 years ago. However, I personally think you’re only ‘somewhat correct’ in the fact that they’ll need to make even more changes to make a pension ’less available’ to the general populace.
This would mean they have to make a sweeter deal (Eg: less tax on super contributions) to make this plausible, rather than just cutting people off. What this transition looks like right now, I have no idea, but they will have to do something or it’s going to be a nightmare in the long run.
Governments just can’t get the fundamentals right to even say they can govern in their own right. Let’s hope they do the right thing mate!
@@dadoftwinsau we don’t know how much is enough without government support
I think the super guarantee will mean over time less and less people will be eligible for a full pension. The pension will end up being for people who fall through the cracks rather than the norm. I haven't done the math but a 20 year old on a modest wage is going to have quite a large super payout at 67.
@@MichaelJanos1024 were starting our twin boys super next year (they turn 13) and start with $5k each and add $5k a year for 10 years. Even if they do nothing, the compound interest will give them $640k by the time they turn 60. It beats just giving them cash and knowing their super will be in good shape long after we’re gone is the best piece of mind we can have.
I would like to see a video on someone who like me is 63 and contemplating stopping work and looking at jobseeker and instead of looking for work volunteering a couple of days a week supplementing with some super and currently have approx $400000 combined with the wife in super. I am looking at getting a full pension so don't plan of living a lavish retirement, only need to be comfortable. I own my own home and do have the option to downsize once I reach the 75 year mark. Even transitioning to retirement by working approx 20 hours a week and supplementing with super.
@@chrisjsmith61 May I ask why you’re waiting until 75 to downsize when it’s available to anyone after the age of 55? ✌🏻
@@dadoftwinsau mainly to free up some more assets to live off. Main reason is I need sheds and a large block to house all my toys.
@@chrisjsmith61 ahhhhh… that’s makes sense! Good luck to you mate. I hope it all works out for the best for you and yours.✌🏻
Dorian was my hope during the bear summer "' last year. I made so many mistakes but also learnt so much from it , and of course, from Hattie. She is my number one when it comes to crypto and TA.
Yer your set 400,000 is heaps if you own your own home
That sounds like a good plan to me
Try the transitioning to retirement it gives you more options
Heaps of really generous tax advantages too
I’m not far of your age a I feel the pressure too get everything sorted
But I have stopped complaining about work and relaxed a bit started taking a lot more leave
I can take it at half pay
Now I am enjoying life and work a lot more
Good suggestion. Just turned 60 and can access my super via TTR. At 4% draw down it doubles my take home income, which helps paying off mortgage. Reducing work hours gradually but I still enjoy my work. Have been a widower for 16 years and raised up 3 children up to this point.
There’s another comment on this video that might benefit from your insight with TTR
If you are on TTR then I believe the govt still grabs 15% of your super earnings in tax - not a good deal. Maybe full retirement is worth considering then both earnings and drawdowns are tax free. Then later you can "change your mind" and decide to go back to work.
Get all of your holidays over and done with BEFORE you hit 70, because then you travel insurance starts to get very expensive. Its a well known fact the longer you live the less money you need to live on. Funny How this video says I need around $72k as a couple when my super tells me I need no more than $60k as a couple, even the super companies dont even know how much you need. ONLY YOU.
Yes, unfortunately insurance premiums do increase with age! I find retirement income needs differ significantly from one person to the next. ASFA provides an estimate for a comfortable and modest lifestyle. This is roughly $48K-$73K p.a. (for couples) and $33K-$52K p.a. (for singles) - for those age 65-84. They estimate that this then reduces from age 85. Hope that helps!
Not too sure what the attraction of travel is I think it’s a social thing people like to talk about travel
I am 58 years old haven’t work for 27 years but have always known super was important but only have $300k today.
Wow I’m 58 have worked full time for my entire working life and only have about that
But wtf its spring and I feel great life is good
with the current cost of living you will need a million dollars to retire comfortably especially living in sydney
A shed load the way this inflation is going 🙄
You do know that inflation is trending down & getting closer to the “ desired level”?
@@pacapaca6307 yes but businesses have a tendency to keep prices the same even if inflation eases because we’re used to paying those prices
@@Ride_on54 True, but at present the only people spending on consumer goods are probably the “over 50’s/60’s” who have managed to build assets or still working with no mortgage & their kids ( if they had any), are “ out on their own”.
Younger ones have truly been schooled in living on credit card debt. 😟
Once you reach 85...your living expenses drop big time. Financial advisor adjust super to cpi. Its a ridiculous amount at 85. So moral of story..if u have a good super nest egg. Spend whilst healthy to get under top pension threshold and then as 85 or after 67..getting as much pension to supplement your super 😂
Nursing/retirement homes aren't cheap...
@@w0mblemania Nursing homes are heavily subsidised if you don't have the assets
@@MichaelJanos1024 That's true, but my point is that if you want to live in a home/facility of your choice with the standard of living that you want, it's going to cost you.
Great video - can you retire at 60, spend all your super in 7 years, then get the aged pension? or are there thresholds/rules around this?
The moral rules of spongeing off taxpayers
@@shaunminehan you can. But why would you want to give ultimate control of your life to the government and the pension l?
@@xkimopye How is drawing an entitlement (And a very modest one at that) "Spongeing off taxpayers"?
@@timjohnun4297 surely there is a moral obligation that if you can avoid being funded by taxpayers then you shall do so. Not go splurging your savings in time to receive money from workers.
@@xkimopye I've worked and paid taxes all my life. I've helped fund politicians' lavish lifestyles, insanely generous super payouts, etc, etc, etc, when I retire (And I haven't yet) I will be claiming every cent I'm entitled to
A single male, at aged 67, without a home, will need at least $1.2M to survive on a basic income, for 20yrs.
Not really the pension will kick in
And your expenses go down as you get older
I don’t see many 80 year olds travelling the world an partying
In liquid assets, I’ve got $860,000 now. I won’t retire until I’m 67, then LSL & AL until 67 1/2. I’m very concerned about not having enough money in my later years. I base this on not owning a home, and having to rent. The basis for this is rent starting at $500 p/w week, and rent increasing at 3% per year for 20 years. Cost of living going up 3% a year for 20yrs starting at $300 p/w. By the time I’m 87, I’m broke.
@@MarkFrost-l3t 860k is more than enough to buy something in a good area out of the major cities
I would budget on about 600 k that way you will go straight on to the full pension and all the associated benefits
The full pension your own house and approx 300k is pretty well off
You will be right
I’m worse off than you and I’m worried but not worried because I know it’s easy make you life miserable by over exaggerating things
newbie question if anyone has an answer. I panicked because of stock market news the other day and transferred my entire super portfolio to cash. There were no warnings other than 'this will take 48 hours' once the money transferred it had gone from 436000 to 428000. after trying to fob me off for a reason they eventually told me I had lost $2300 on interest . Anyone have an idea where the rest of the money went?
All you've done is crystalized your losses. Super funds balances can move daily. Mine constantly can go up and down $5-$10K every few days. When the market bounces back and it will. You'll regret the cash move.
thats a wild strategy - i actually bought more shares in the recent sell off...
This video may help ruclips.net/video/8PWUglcbnfA/видео.htmlsi=1TNvHdyIqDiIbJC3
@@pauljones7923 hey Paul, without knowing your age or situation, I don’t mean to offend by making assumptions.
Firstly, underlying assets you were invested in could’ve been term deposits which were to mature in the future. Early withdrawal fees might have cost you the interest. If I was to guess.
Couple of things you can do here:
- get yourself a financial education. You will be responsible for managing this wealth as you get older. Although this kind of behaviour will not bode well for you, it is absolutely not difficult to quickly raise your knowledge to a level that will allow you to sleep easy at night with better quality investments, even if the go up and down a bit more than you’re used to.
Focus on
- understanding what a share and what the share market actually is.
- the difference between risk and volatility (super funds rate their investment options via ‘risk’, but actually that just volatility)
- risk is closer to the returns you are missing out on by being invested in a substandard asset class, like cash or a standard managed fund offered by super funds.
- building a financial goal
- figuring out what assets will work best for you to achieve that goal (index funds, LICs, direct shares, property…small group of index funds and LICs are all anyone needs), but the worst option is cash and the second worse option is a super fund that charges high fees and doesn’t allow index fund or LIC investing. They instead have ‘balanced’ ‘growth’ ‘aggressive’ type options. These cost a LOT in fees and under perform simple index funds in a huge way.
- when analysing different super funds, it is CRITICAL that you consider the insurance you get through your super and if your job allows you to get insurance at a different fund that has lower fees/better investment options. If not there is a work around that I have to use (keep min balance in industry fund and continue to make my super contributions to that fund, then roll over all but minimum balance to the cheaper super fund that has better investment options)
- investment mindset required. If you have a while to go into retirement, as long as your super fund is cheap and is invested in broad market index funds, you don’t need to worry. Also, as your portfolio increases in size, a 1-2% market shift will show much larger numbers. That’s something you’d need to condition yourself for mentally.
If you haven’t done so, barefoot investor book is a great place to start. And the whole book has great ideas, but you can start with the chapter on super.
The next thing I’ll say is that your super fund provides financial advice. You already pay for this in your fees. So they can provide you with information that you can spend some time digesting. No need to change up what you’re doing straight away.
$430k is an excellent super balance when compared to the averages for all ages. You’re doing great.
Through COVID my share portfolio in my SMSF went down 150k. The only regret I had was not having enough cash to buy stocks such as NAB at $15, WBC $14-15, CBA around $75 etc during that time. By 2022 I returned to pre crash position, and in 2024 through constant regular buying my balance is double of any pre-COVID crash. Last FY I got about $85k in dividends. The worst thing to do is to "change it all to cash"
Have you ever thought of doing a video on a Define Benefit so those of us with one can understand them a bit more? Especially when we want to do a TTR style into a pension income stream?
Many thanks for the info you’ve given us so far! It has definitely helped us understand so much more as we’re both 55 and looking at retiring at 60. ✌🏻🙌🏻🇦🇺
I'm glad that I've helped you in some way! That is a good idea, defined benefits can be very tricky to understand!
@@SuperGuyAu Yes…. Please cover DFs please. They are still subject to tax & that makes a difference to whether you work after retirement & a whole bunch of other “ strategies” going into retirement.
So the crux is to retire well, keep working leading up to and during retirement. Hmmm. Reality sucks.
For 50+, Is it worthwhile comparing putting money into super vs trauma insurance?
You can draw on your Super if you have such a life changing event. Your premiums once spent are gone, if you invest that money into Super ultimately it will grow.
Everyone voted for them to cut back the salary sacrifice for super so why complain. If you want more super then become a politician.
Not everyone
Half a Bitcoin
Depends on the time of day, phase of the moon.
Might as well say "x-lotto ticket".
$2MILLION BUCKS A YEAR THEY WAY THESE CORPORATIONS AND GRUBBERNMENT ARE RIPPING US OFF
Always lots of valuable information and always appreciated!
Happy to hear it was helpful!
5 million
Depends on how inefficient you are. That is not a realistic sum for most people (almost all). But if that's the amount you need to spend to live well, then you do you.
I had $125k in super and $350k in the bank when we retired last year at 63
What's your annual spend do you think?
Do you have a house, though?
@@w0mblemania
Yes it would be impossible if we didn’t
Is 350k in the bank enough to cover the expenses?
@@DM-sc4zy It would be enough to cover until full or partial pension supplement, as the house has been paid for.
The Australian pension system works by rewarding those who do nothing to plan for their retirement (they get the maximum amount), and by punishing anyone who works, pays taxes, and manages to squirrel away some money.
It actually rewards those who are a couple and own their home and have approx $450k in their super. This is the sweet spot where you maximise the aged pension benefits and also draw down a tax free income from the super fund. You'd get $1600 per fortnight or $41k per year from the aged pension and another $25k from super all tax free
A couple can still get a part pension with 1 million in cash and assets.
It kind of rewards those who play the game you can hide assets pretty easy if your smart
But you have to start early and do it gradually
1 buy a bigger home
2 gold
3 art
4 gift cards with long expiry dates
5 certain overseas banks are not accessible by the Australian government
6 unregistered collectable cars
7 some utilities allow you to prepay bills
8 cash
9 honey it has no self life and goes up in value
And heap of other things I haven’t thought about
The million dollar question and there’s a clue 😮😉😉😉😉
Thanks for your answer and making it so clear 1 million 🙏🙏🙏
81.5 hmm I better start spending up big.
The problem with statistics is that they're not personal.
That 81.5 takes in to account all the people who are expected to die early because of bad choices, misadventure, existing conditions etc.
For example, if you have miraculously made it to the age of 80, then your expected lifespan is about 89...
The interesting thing is that top-end ages haven't risen much. It's just that more and more people are getting to the 90s, instead of dying earlier.
where do you want to live? what will house cost let alone what hobbies . standard of living and then leeching family lol
Looks like my Super could be adequate. 🤔
But with Universal Basic Income ‘rumours’, it really looks like the ‘great reset’ is the complete replacement of Super/Welfare/Pension systems🫣
Say goodbye to lump sums, social credit scores and slave allowances are coming. 😭
super will be cut in half, probably worse, GFC2.0 is upon us soon anyone exposed to tech and risk assets will be returning to work move portfolio to commodities when the bottom comes
800 $ a mth for 30 years is 288k...not 185..hmmmm? Financial advisor.
I think what he said was you would need to have $185,000 extra invested at the date of retirement to fund the extra $800 per month.
@@waynev5097yep this as you will have earnings on that extra $185k…
Imagine if you could invest money to make money, then maybe you wouldn't need to have as Mick to start with 🤔
THe best way to retire is NOT to have money in Super at all. 9-12% pa is a joke when the dollar is de-basing 14%, work that out
I can't work it out because you haven't made any sense. Perhaps you should just admit you have no clue. What happened to your dollar basement in your original comment?
@@MrSouthernlord Firstly 9-12% in super is less than 14% in dollar basement correct! Secondly, because you can't work that out, I , have no sense. This makes the assumption that you're stupid whilst you assume other people have no clue. Grow up, or at least get educated ok
@@Campbell1. What the f**k is dollar basement? You are trying to use terms you don't understand. All you have to look at is inflation compared to returns.
@@MrSouthernlord Oh give up the personal attack and do your fuking research
This guy is so out of touch with reality, technically correct like so many but out of touch with the average person
yeah the average person is actually classed as the working poor in Australia. If you go back to the 1950's the middle class income they made back then adjusted for inflation today is closer to $150k
How is he out of touch. He's giving stats from websites. And put in an amount as an example to explain how a website works.
@@davesunderland1026 out of touch how? What should be said is that ‘average Australian’ didn’t plan their retirement early enough and not be saying ‘we don’t have that sort of money’ or ‘he’s out of touch’.
My wife and I are on jobs both below 100k a year but have both been scary sacrificing for over 20 yrs, and paid our house off instead of having fancy cars and huge holidays.
Combined Super of now $1.3M + own home + one rental property (all paid off) and going to retire at 60.
So is he out of touch, or are average Australians just having a whinge because they didn’t do their due diligence/ homework?
@@dadoftwinsau congrats mate - great strategy. Salary sacrifice is such a good deal from the govt.
@@dadoftwinsau, spot on mate, people don’t plan for their future and it’s everybody else’s fault. I’m 58, own my home, no debt, 2 new cars last year, new caravan this year, retirement in 3 years (61) and will have 1.2M in super and savings to start my big lap of this fabulous country of ours, and support myself and the good wife in retirement.