How much retirement budget is adequate? Are SMSFs pushing themselves in the right direction? In an article for the website SMSF Adviser, Katrina Brown throws light on these pertinent questions. Most of the SMSFs, according to recently analysed data (with a very large sample set) are moving in the right direction and they should have enough in their kitty to enjoy comfortable retirement.
What is adequate for a 65 year old retiree?
At present rates and living standards, a couple may need $58,128 to fund their ‘decent’ retirement ambitions annually. If you are a 65-year old retiree, you can manage the post-retirement show for long years with this kind of budgetary cushion.
Are we drawing way too much from the SMSF kitty?
This said, drawing more than what may be the sustainable levels can prove hazardous for our population. Somehow, we have fallen into this habit of overdrawing from our SMSFs. It is wise then to diversify assets and hold financial portfolios apart from making voluntary contributions to your SMSF.
You can read the original article here.
It is heartening to know that Australia is the second best placed nations when it comes to retirement savings strategy. Yet, for long painful years, we have lived in ignorance of what I may refer to as “smart retirement planning”. The baby boomer generation is not doing anything to cure this oblivion and today, most of them, barring a few wise investors of that generation, find themselves in a trap.
It is then comforting to know that our present generation is picturing the post-retirement reality well in advance and is trying to stash in enough cash for the dry days.
What kind of an asset diversification strategy do you use?