In determining how much is required to retire, you often suggest that 12 - 15 times the income needed would be appropriate. This would mean that to achieve an income of say $60,000 a year you might need 15 times this in superannuation i.e. $900,000.

However many advisors now suggest that you would need between 21 and 25 times the income you hope to have which would mean a superannuation balance of maybe up to $1.5 million when inflation of 3 per cent and a return of say 5 per cent is assumed.

Could you give me your views?


It's important to understand that the purpose of projected figures is really to set goals. How much you need to retire will depend on a range of variables that includes how long you live, the state of your health, how long your parents live and what care they will need, how much you expect to receive in bequests, and your risk profile.

For example, an extremely conservative investor should need more than a more adventurous one because in theory, at least, the latter should get higher returns. This is why it is critical that you have a meeting with your adviser at least annually to make sure you are on track and to adjust your strategies when necessary.