Superannuation Discussion + market volatility

[mrsterryn]

You mean they overestimate their weekly budget?

Yes in a way. I see how people think they need $2000 a week income (just random number ) and they are working out on a very low return on their superannuation. So they end up with more in superannuation cause they are restricting themselves from spending

Ok I think that waffle above may have gotten away from me trying to explain lol.

 

[Brissy1]

From first hand experience, very few unadvised clients have done the research to know how much capital they need in retirement - and by the time they do, it can be too late to either contribute, or to accept the level of risk needed (or even a combination of the two). The ASFA retirement standard numbers are generally sobering for most: Retirement Standard

Interesting, even the highest level "comfortable lifestyle" provides for only 1 domestic flight pa and 1 OS per 7 years!
Need an "aff lifestyle" category.

 

[Quickstatus]

Retirement Standard

The problem there is the assumption of the "average" house and its associated costs.
Some who have large houses at retirement would need to downsize to get into the numbers quoted.
I think the numbers would be Ok for a freestanding house with a rebuild insured value of about $1-1.2M

And looks like only 1 car?

 

[Pushka]

Do you think people perhaps a inflated view of how much is needed in retirement ? Not including those who currently rent due to inability to purchas , they have a horrendous time .

Notwithstanding I know a lot of people have aversions to Centrelink but it is there as a backup

The issue for many is the cost of special care at home or transfer to a nursing home.

 

[Quickstatus]

cost of special care at home or transfer to a nursing home.

If the retiree wants greater choice of NH -especially the nicer ones.