One of the most commonly asked questions by older Australians is ‘how much do I actually need to save for retirement?’

Baby Boomers Guide to Life spoke with Marc Bineham about the issue in Money Extra. He urged seniors to consider the emotional and lifestyle changes that are a part of the retirement journey, along with the big question: “Will I have enough?”

Now, the latest report released by Super Consumers Australia with CHOICE provides updated “rule of thumb” retirement targets for individuals and couples.

The consultation process and research report was supported by a philanthropic grant from Ecstra Foundation (a supporter of Baby Boomers Guide) and aligns strongly with ecstra’s focus which is, the financial wellbeing of older Australians.

“Among the most important financial questions retirement-planning Australians face is how much they need to save and what income those savings will deliver in retirement. These new retirement targets are designed to help people answer these questions. They provide a solid ‘rule of thumb’ for what is needed to maintain your living standards when you’re retired,” says Xavier O’Halloran, Super Consumers Australia Director.

Super Consumers Australia’s consultation engaged consumers, academics, regulators, industry experts and superannuation funds.  Feedback was provided by more than 30 organisations and broad support that the targets will be a useful tool to help those planing for retirement.

O’Halloran said, “Our goal is to improve consumer and industry understanding of people’s retirement needs through industry wide adoption of the targets and the underlying assumptions and research.  These savings targets are based on what people spend in retirement with a buffer built in to provide confidence that people’s savings can weather the type of market volatility we’re currently experiencing. Having credible targets, based on actual spending, means people can confidently spend and get on with enjoying their retirement.

He added that these targets come at a time when the superannuation industry is grappling with the needs of consumers who are approaching retirement. As part of the Retirement Income Covenant, Super Consumers Australia would expect funds to be using these targets to help members make sense of their retirement income needs.

This research was supported by a philanthropic grant from Ecstra Foundation – a supporter of Baby Boomers Guide to Life. Ecstra is committed to building the financial wellbeing of Australians within a fair financial