The Australian Securities and Investments Commission (ASIC) has provided consumers with a new financial aid in the form of a superannuation calculator to help them determine the level of savings they will require for a comfortable retirement.
Using the FIDO Retirement Planner, members of the public can determine such things as how much super to save before retirement, how much money can be drawn from an individual’s superannuation if he or she doesn’t make any post-retirement contributions, and how much of the government age pension they are entitled to receive.
ASIC executive director, consumer protection, Greg Tanzer said this means users will be able to determine whether their super together with the government age pension will be adequate at retirement age. As such, users who find they may not meet their goals can consider postponing retirement or make some extra super contributions.
The calculator also allows people to plan on an individual basis or together with their partner, as it takes into account the different rules applied to these two different situations.
The new financial aid can help people decide on the most appropriate investment strategy to maximise their retirement savings as well. This may involve changing from a more conservative balanced strategy to a more aggressive growth-oriented plan.
“The retirement planner will show you what each of these options could mean for you. Consider your own circumstances carefully when using this calculator. You might need expert, licensed advice on retirement planning,” Tanzer said.
The calculator is available on the regulator’s consumer website Fido and comes with a user guide that explains all of the assumptions used in the calculations and the features at hand.
