Superannuation Alert: $1 Million Isn't Enough to Retire in Comfort

Here is some interesting news through from Superannuation industry veteran and chairman of retirement income at Challenger, Jeremy Cooper. He said,

“If the typical $1 million nest egg was used to buy a lifetime income in the current interest rate environment, it would fetch about $1,297 a fortnight – the same as the government pension!”

"The brutal reality is that a fair price for an age pension in today's interest rate environment is around $1 million. For that amount, a couple will get $33,717 of income a year. A comfortable retirement would cost more."

Mr Cooper's statement comes after the government's intergenerational report found that by 2055, Australians' life expectancy would have climbed to 95.1 years for men and 96.6 for women, compared with 91.5 and 93.6 for people born today – reflecting the need for more retirement planning.

Modelling by ASFA showed couples may be able to retire comfortably if they had $500,000 in their accounts and if they owned their own homes today. But a low interest rate environment affecting returns means this will not be enough in future.

"There will be a lot of people retiring with no home. In 20 years' time, we need to look at what that means, and if longevity keeps increasing, it's a whole new ball game."

These are all very important things to keep in mind when we look at what our retirement options are. If we don't plan properly for retirement, then we will never get there.

Since 1994, Property Club has been assisting members to a safe and secure retirement, with a lot more options in front of them, especially as we are healthier and living longer in retirement.

Do we have proof - yes!!

View the details of our PMC - Property Millionaires Club, where we just welcomed our 5000’th Property Millionaire!

http://www.pmc.propertyclub.com.au/

Contact your Property Mentor for a catch-up chat to see what you could achieve by safely and securely investing in residential property!

Have a great week-end and catch you next week!

Warm Regards,

Troy Gunasekera National Manager