I suppose it’s good that I have confirmed my suspicion that I won’t have enough to retire. I’m 40 and have been working since I was 15 but lost most of my super during the Global Financial Crisis when I had it released to catch up on mortgage payments.
Only to lose our home anyway.
Now I have a small sum left and I’ve been diligently trying to contribute to it ever since. But I’ve left it way too late.
Using the ASIC Money Smart Superannuation Calculator I’ve figured out that I won’t have enough money to retire at all, let alone in style. Unless I work until I am 90. Then I might just be able to cover expenses.
When calculating how much superannuation you'll need to retire you can calculate for a "modest" life or for a "comfortable" life. Leaving my husband out of it for now because he is 12 years older than me and has less super than I do, if I were to only aim to have enough for myself to live modestly at 65, and I only want to live until 85, I'd have to save $475,340.
I only have a fraction of that and another 25 years of my working life to correct the situation. And in all honesty I'd much rather retire in comfort, necessitating $1,076,550.
Of which I have less than a fraction.
The lesson: It's never too early to pay attention to your super. When you're basking in the sun on a yacht or living in a luxurious retirement village, you'll thank me for it. Meantime I'll be renting a studio apartment, hopefully on the ground level so my arthritic knees don't have to attempt any stairs, eating No Name sardines on crackers to stay alive.
Yum, yum, yum.
I don't want to do the "reverse boomerang" and move back in with my adult children because I can't afford a place of my own. But that could be a reality.
Reverse boomerang, when your parents move back in with you. Article continues after this video.