Mark and Shani Warn $1 Million Super Target Can Mislead Australian Retirees

1 articles · Updated · Morningstar.com.au · May 26

$1 million, average-balance targets and ASFA’s $630,000 “comfortable retirement” benchmark can all understate what many Australians will need, Mark and Shani said, arguing retirement planning should start with personal spending needs rather than generic super goals.
Longer lifespans, inflation, market sequencing risk, higher lifestyle expectations and housing costs are making retirement harder to model, especially for Australians who retire with a mortgage or as renters.
Their framework works backward from the life a person wants in retirement: estimate annual spending, adjust for inflation and longevity, and stress-test for downturns, illness or career breaks.
The pair urged Australians to review super regularly, use calculators to check whether balances are on track, and adjust contributions, asset allocation or savings outside super as circumstances change.

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