As we go on with our busy lives, the chances are that many of us are too distracted of occupied to pay much attention to our superannuation. We ‘don’t even know something as simple as how to find unclaimed super. As a consequence, we may not know how much we have for retirement.

But do you know how much you need for retirement? Answering this question can be a bit stressful with all-out financial obligations looming on the surface – from a mortgage, to credit card debt and many other things.

But the thing about retirement savings is that the earlier you begin, the better. And the fact of the matter is that retirement savings are big money to give away. So ‘lets a little bit more about our retirement savings.

Why knowing how much super you need for retirement is important

The point is obvious, you need some money for groceries and other stuff when ‘you’re no longer drawing a paycheck.

There was a time when many people earn a pension, but that thing is in the past. And some people have this notion that ‘they’re going to work forever. And for some people, sure you have a job where you can work until ‘you’re 85 – but not if ‘you’re a roofer.

So for the most of us, if we ‘don’t save, we face the risk of a declining standard of living or becoming a burden on our family. And nobody wants that.

First steps

So the first thing you need to figure out is what kind of standard of living you want for retirement. Basically, there are a couple of key questions you need to answer:

• When are you likely going to die.
• Assumptions on investment performance.

The answer to the first question will give you a rough idea of how much money you really need to sustain you through retirement while the answer to the second question gives you a rough estimate of how much your savings will grow.

How much superannuation will I require?

Citizens born after 1965 are going to be expected to work longer to get the aged pension, yet for those who can buy it, then an early departure from work is still probable.

As part of the controversial federal budget of the Abbott Government, Joe Hockey declared the retirement age is going to rise to age 70 from 2035.  Hockey states the pension presently costs more than the whole defense budget and is increasing to $72 billion.

The choice is controversial in lower wage earners; manual employees and indigenous people are likely to endure the effect of the alterations.

However, with a healthy super and planning, people do not have to depend on the aged pension or work until 70 years old to retire.

Qualify for the pension

Under the present legislation, to be eligible for the full aged pension, Australians should have a $156 weekly private income for singles and up to $276 weekly for couples. If you’re single making over $1841.60 per fortnight, or a couple making over $2817.20, you won’t qualify.

Also, the pension is asset tested, along with the government seeing the value of monetary investments, super, assets, business, personal effects, cars, etc.

Part-pensions cut out once assets are worth over $672,750 for singles homeowners and $815,250 for singles with no house. And for homeowner couples, this is $758,750, or $901,250 for couples without a house.

Basic lifestyle (aged pension)

The experts state that a “basic” lifestyle financed by the present aged pension pays $21,913 annually for singles or $33,036 for couples. It covers only 27% of the average weekly income of a male. While the aged pension takes in discounts on amenities expenses and health services, the minimum rate of fortnight pension is only $383 weekly.

The rate of pension is less than the ASFA suggests for a modest lifestyle following retirement – 14% of aged pensioners are living under the line of poverty.

Modest lifestyle

A modest retirement lifestyle is just further the aged pension, offering an annual income of $23,283 for singles; for couples, $33,509. This retirement alternative only considers low-cost activities and doesn’t permit any overseas travel.

The ASFA states that singles who retire with this amount should budget $75 weekly for food and $17 weekly for clothing. To finance a modest lifestyle with no age pension, the experts state that Australian singles are likely to retire with the amount $432,000, and $621,000 for couples. People eligible for full pensions can retire with less cash if they still like to have a modest lifestyle.

The experts state that singles would have to retire with $25,000; couples would have to retire with $7000 to have a modest lifestyle.

Comfortable lifestyle

A comfortable retirement offers a yearly income of $57,665 for couples and $42,158 for singles. Living on this wage indicates that retirees can buy things such as excellent quality household goods, private health insurance, and out-of-the-country travel.

On a comfy retirement, singles are provided $38 for clothing and $108 weekly for food.

The ASFA states a comfortable lifestyle permits a retiree to live a good lifestyle through buying things such as; private health insurance, household goods, good clothes, a reasonable car, various electronic equipment, as well as occasionally international and domestic holiday travel.

This retirement alternative obliges singles to save super of $785,000 and $1.07 million for couples.

The exerts states that those qualified for an age pension yet desire a comfortable lifestyle have to retire with $527,000 at least if they’re a couple; $465,000 if they’re single.

How much money you need for retirement will essentially depend on a couple of things:

1. The kind of lifestyle you want to live through retirement.
2. Your circumstances.

When it comes to #2, we really ‘don’t know for sure what your circumstances would be. In terms of your health, for example, it may be probable that you may need extra care, although you may also be adequately healthy throughout retirement.

The only thing you can be sure of is that your super, as it is now, may not be enough, and ‘you’d probably need more money to last you through retirement.

There are also things you can do to maximize your super savings, and one of them is to find lost superannuation online. Find superannuation that may be lost or unclaimed to gain extra money into your super.