Thank you for this, i know its just a rough guide, but it helped me realise im on track .. 2 years ago i started salary sacrificing an additional 5% on top of the base rate.... Im almost 38, with 120k, and im only a factory work on less the 60k, so i feel like ive developed a stable footing on my climb to retirement. 👍
Just roughly played around with an app- if you kept doing that as your wage goes up with inflation, that’s going to be pretty much retiring on your same income forever (adjusted for inflation every year) when you get to your early 60s. That’s excellent, and much better than the average retiree today lives. Awesome stuff. Assumed 15% contributions tax, $2000 per year super insurance, 7.5% investment returns, 1% super fee, and 16.5% contributions with average wage growth of 2.5% per year, plus being in pension phase so tax free. You’ll get the same income after tax as you get now (after for accounting for inflation), possibly a little more.
@@ljp1942, having too much in super isn’t a pitfall. If you can self fund your retirement, you’ll be much better off financially than relying on the aged pension. If you rely solely on the aged pension, then you’ll be likely on, or just over the poverty line, which isn’t my financial goal in life.
Hmmm, so the balance at the retirement point is suppose to be 584k? So from that point on you would be spending ~10% p.a. as a single person to be comfortable and hope the market delivers? Or am I missing something?
Thank you for this, i know its just a rough guide, but it helped me realise im on track .. 2 years ago i started salary sacrificing an additional 5% on top of the base rate.... Im almost 38, with 120k, and im only a factory work on less the 60k, so i feel like ive developed a stable footing on my climb to retirement. 👍
Great work on kicking off the salary sacrifice so early! 60 year old you will be very glad you did 😉
Just roughly played around with an app- if you kept doing that as your wage goes up with inflation, that’s going to be pretty much retiring on your same income forever (adjusted for inflation every year) when you get to your early 60s. That’s excellent, and much better than the average retiree today lives. Awesome stuff.
Assumed 15% contributions tax, $2000 per year super insurance, 7.5% investment returns, 1% super fee, and 16.5% contributions with average wage growth of 2.5% per year, plus being in pension phase so tax free. You’ll get the same income after tax as you get now (after for accounting for inflation), possibly a little more.
You don't explain the pitfalls if you save too much in super such as being cutoff from the aged pension.
@@ljp1942, having too much in super isn’t a pitfall. If you can self fund your retirement, you’ll be much better off financially than relying on the aged pension. If you rely solely on the aged pension, then you’ll be likely on, or just over the poverty line, which isn’t my financial goal in life.
Hmmm, so the balance at the retirement point is suppose to be 584k? So from that point on you would be spending ~10% p.a. as a single person to be comfortable and hope the market delivers? Or am I missing something?
It's a little bit more involved than that because it also factors in the Age Pension. They also have different figures for single and couple