One of the advantages to hiring a financial advisor is that they can take a complete look at your finances and find out if you are “leaking” anywhere. If you are in a city like Perth, with a high cost of living, your margin for financial error is smaller and you may benefit greatly from getting sound financial advice.
While the superannuation contribution freeze is taking up a lot of news space, news.com.au recently published a report in which it said that Australians currently pay an average of $1300 in superannuation fees per year, for a national total of $20 billion.
This works out to 1.2% per year of total balancers. According to a report by the Grattan Institute called “Super Sting,” the average 50 year-old in a high-cost fund will lose $80,000 to superannuation fees by retirement day when compared to a lower cost fund. The same report said a thirty year old will lose $250,000 by the time they retire compared to a lower cost fund.
The Australian Superannuation Funds Association currently estimates that singles who retire at 65 and die at 85 will need to retire with a balance of $544,000 to provide $57,195 per year to live on. They recommend that couples have a balance of $744,000, providing $41,830 each.