The ways people who have retired from employment earn an income (e.g. age pension, superannuation, private savings) WESTERN AUSTRALIAN HASS CURRICULUM - ECONOMICS AND BUSINESS YEAR 7

About 15% of Australians classify themselves as 'retired from work'. Many people will spend a quarter of their life ‘in retirement’. The questions thus arises "do I/we have enough money to fund our retirement?'

To fund a modest lifestyle, it is estimated that couples need about $620,000. For a comfortable lifestyle, that sum rises to $1.07 million (source: SuperGuide.com.au)

To be 'self funded' - i.e. having enough funds saved from your working life to meet these benchmarks, people need to have either

  1. built up a pool of funds from savings and personal investments, or
  2. contributed to superannuation for most of their working life.

How is it possible to build your nest egg? The video below (from superguru.com.au) shows how superannuation can be one way to build enough money to live on in retirement, just by contributing the current minimum (Super Guarantee Levy) - 9.5% of your wages or salary.

Superannuation is not the only way to fund your life in retirement: You could also rely on savings or personal investments (like property income or sharemarket funds)

Or rely on the age pension - if you meet the eligibility conditions, including being over 65; have been an Australian resident for at least 10 years; and 'pass' the income and assets tests for pensions.

This presentation accompanies the Economics Teachers Association of WA (ETAWA) professional development material written for Western Australian and Australian Curriculum Economics and Business. This material is being developed for all Year levels 5-10.

Created By
Greg Parry
Appreciate

Credits:

Alex Proimos from Sydney, Australia (https://commons.wikimedia.org/wiki/File:Retired_Picnic_at_Otford_Lookout_(6748299401).jpg) Tax.credit.net Superguru.com.au 

Report Abuse

If you feel that this video content violates the Adobe Terms of Use, you may report this content by filling out this quick form.

To report a Copyright Violation, please follow Section 17 in the Terms of Use.