$1 million not enough savings for Aussies to retire on

Australians need more than a million dollars to retireThe latest advice from one of Australia’s leading superannuation industry members is that Australians who believe $1 million is enough for a comfortable retirement are in for a rude shock.

Superannuation industry veteran and chairman of retirement income at Challenger, Jeremy Cooper, said if the typical $1 million nest egg was used to buy a lifetime income in the current interest rate environment, it would get you about about $1297 a fortnight – the same as the government pension.

“Assumptions and assertions that $500,000, or even $1 million, in super, in the current environment, will guarantee a comfortable retirement are suspect,” said Mr Cooper, chairman of retirement income at Challenger.

“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.”

Current low bond and interest rates would severely affect the returns of investors, many of whom are preparing for a lump sum windfall instead of steady income.

This follows on from a University of Melbourne report last year which indicated nearly half of Australians would run out of super within 10 years of retiring and be forced onto the government pension, leading to a drop in lifestyle and income security.

Rich people invest in property

This is why rich people and smart investors look to property to grow their wealth and provide an appreciating asset that delivers an ongoing income stream.

Many people are using the capital in their super funds to invest in property and get more money from their fund for their retirement.

Why not invest in one of the great value townhouses we currently have for sale in Mooroolbark, a fast growing area of outer eastern Melbourne. This is one of the strongest performing parts of the Melbourne property market.

You can pick up an investment property returning good rental yields, in an area with very low vacancy rates and strong capital growth prospects.

More detail about the investment opportunity can be found at www.fastlovehomes.com.au/invest and you can download a copy of our assessment of the return on investment from a two bedroom, two bathroom townhouse.

We have already sold 25 percent of stage 1 so interested buyers need to act quickly.

If you would like to secure one of these investment grade townhouses please contact Tony Smith from Max Brown Real Estate in Croydon on 0411 424 964 or 131 629, or email tonys@maxbrown.com.au

{ 0 comments… add one }

Leave a Comment