Retirement:

[EEG]

I know there are a lot of variables to consider when saving for your old age, but in easy terms what should you consider in AUS.

I will almost be 30 when I will be arriving in AUS and will be cashing out my pension in SA as I need the finances to reallocate.

Some people told me that you don’t have to worry as the supper annuity will be sufficient as you will easily work until you are 65. I however doubt it as you I want to live comfortable when I an older.

I know it is a big topic but where can I start with my research or is there somebody on the forum that I can pm with more detail financial estimations.

Thanks

[Mara]

Hi Etienne & Elsa

When you work in Australia, the company you work for, pays over 9% of your gross salary into a superannuation account for you. You may, however, add to this, if your company will allow it, as salary sacrifice, in other words before you are taxed on your salary. The amount that you sacrifice will be taxed at 15% by your superannuation company and they will pay this tax over to the tax office. There are limits to this though, but as far as I know they are quite high. If you retire and start drawing off your super after you have turned 60, it is now tax free (I hope I am correct in this statement)

I belong to Australian Super (an industry fund) and here is a link, you may find something of interest there.

http://www.australiansuper.com/

[Lmari]

Hi Etienne & Elsa

When you work in Australia, the company you work for, pays over 9% of your gross salary into a superannuation account for you. You may, however, add to this, if your company will allow it, as salary sacrifice, in other words before you are taxed on your salary. The amount that you sacrifice will be taxed at 15% by your superannuation company and they will pay this tax over to the tax office. There are limits to this though, but as far as I know they are quite high. If you retire and start drawing off your super after you have turned 60, it is now tax free (I hope I am correct in this statement)

I belong to Australian Super (an industry fund) and here is a link, you may find something of interest there.

http://www.australiansuper.com/

Hi daar E&E

Mara is heeltemal reg oor die superannuation. Jy kan tot $70,000 'n jaar inbetaal.. weereens as jou werkgewer dit toelaat.

Ons betaal heelwat in omrede my man al oor die 50 is. Al sy bonusse ens word daarop inbetaal want dit is tax free. So spaar 'n mens darem... bedoelende op die belasting.

Ek glo mens kan met die staat se pensioen lewe, maar jy sal ook net lewe.

Groete

L'mari

[Springbok]

I know there are a lot of variables to consider when saving for your old age, but in easy terms what should you consider in AUS.

You can play around with the tool in the Excel spreadsheet. I have made a few assumptions:

- you are now 30 years old and will work until your 60th birthday, when you retire

- you will live 25 years after retirement

- you must enter you own starting salary at age 30 (cell B2)

- the salary is escalated annually only by the inflation rate (i.e. doesn't take into account bigger increases and bonuses)

- make an assumption for inflation (cell C2) and the growth rate of your super investment (cell G2)

- select whether super is included or excluded (cell D2)

- then click the green button to re-calculate the graph

I have expressed the graph in terms of TODAY's dollars. e.g. if you start with a gross salary of $60,000 today, assume inflation is constant at 3% and your investment grows by 10% every year, then you will have capital of $1,213,468 at retirement. That is equivalent to $212,145 in today's terms. Assuming that your capital runs out on your last day on earth, your income will be $1,514 per month (in today's terms!) in the first year of retirement. In the 2nd year of retirement, that monthly income increases by the inflation rate and so on until your monthly income in your last year of retirement is $3,077 per month.

Remember that this whole exercise includes a lot of assumptions, because we do not know what future inflation rates, investment growth rates, etc. will be. And things like bonuses are also excluded. So this is a rough guide only.

Remember to ENABLE macros when opening the spreadsheet!

Any questions - PM me.

Charl

[EEG]

Thanks, I will pm in due course

[Springbok]

Here's an updated version of the spreadsheet, capable of more scenarios:

Remember to select "Enable Macros" when opening the s/sheet.

[Steedies]

Hi Charl

Fantastic! Thank you!

Cheers Derek and Belinda