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Once you’ve worked out the retirement lifestyle you want, it’s time to think about whether your current saving levels will get you there. 

If you’re not sure how to do that, you may want to use some of the MoneySmart tools to help with your calculations:

  • Use the Superannuation calculator to input your current superannuation details, and it will provide a ballpark value of your account when you retire based on the information you input.
  • Use the Retirement Planner calculator to help you approximate what your income is likely to be from your super and the Age Pension (if you qualify) when you retire.

How long should it last?

You don’t know how long you’ll live, so you don’t know whether to spend up big early in retirement and hope that the Age Pension will be enough in later years, or to be more careful with your money, so that it lasts as long as you do. 

It’s good to understand that there are generally three stages of retirement, and how you spend your money in each stage can be entirely different:

  • Active years: when you’re likely to spend a lot of money, enjoying your retirement, travelling or doing the things you’ve looked forward to.
  • Sedentary years: you’re getting a little older and less active, so you’re more likely to spend more time at home. You’re slowing down and this generally means your spending slows down too, as you’re not spending as much on lifestyle and leisure.
  • Aged care years: as you approach or get to your latter years, you may need to rely on assisted living. You’ll need to consider how you’ll fund this, so that you don’t need to rely on family to help you.

Next steps

By now you have either confirmed that you are on track or have identified that you may have a gap to fill. The good news is that there are options available to you.

Click here to view our article which addresses the question, “what to do if there is a gap in my retirement fund?”

This article was previously prepared and published by AIA Australia Limited ABN 79 004 837 861 (AIA Australia) prior to Resolution Life’s acquisition of AIA Australia’s Superannuation & Investment life insurance on business 1 July 2023.

Important information

Where the information on this website is factual information only, it does not contain any financial product advice or make any recommendations about a financial product or service being right for you. Any advice is provided by Resolution Life Australasia Limited ABN 84 079 300 379, AFSL No. 233671 (Resolution Life), is general advice and does not take into account your objectives, financial situation or needs. Before acting on this advice, you should consider the appropriateness of the advice having regard to your objectives, financial situation and needs, as well as the product disclosure statement and policy document for the product. Any guarantee offered in the product is only provided by Resolution Life. Any Target Market Determinations for our products can be found at resolutionlife.com.au/target-market-determinations. 

Resolution Life does not make any representation or warranty as to the accuracy, reliability or completeness of material on this website nor accepts any liability or responsibility for any acts or decisions based on such information.

Resolution Life can be contacted at resolutionlife.com.au/contact-us or by calling 133 731.