The longevity of a superannuation (super) fund depends on several factors including your total savings, your annual expenses in retirement, the rate of return on your investments, and other sources of income such as pensions. Key points to consider for how long your super will last:
- The more you spend annually, the quicker your super savings will be depleted.
- Investment returns can extend the life of your super, but these are based on assumptions and market performance.
- Other income sources like the age pension can supplement your super and affect how long it lasts.
- There are calculators available that can estimate how long your super might last based on your specific financial details and retirement lifestyle preferences.
For example, if you have $500,000 saved and live on $60,000 per year, your super could last several decades, but if you spend $125,000 per year, it will deplete faster. These estimates typically factor in inflation and assume an average investment return (like 4% per annum).
To get a precise answer tailored to your situation, it's best to use a superannuation retirement calculator where you input your savings, expected retirement expenses, and other income details. These tools give personalized estimates and can help you plan accordingly.
