Renters don't have the fallback of a mortgage payment for savings. So they need a plan to fund their retirement likestyle and not just their lifestyle while working. Unfortunately, retirement is the one area where renting instead of buying is really tested.
People tend to think that compulsory super will make for a confortable retirement but this is a misconception. According to Ross Clare, the research director at the Association of Superannuation Funds of Australia the average earner with 30 years of continuous full-time work ahead of them will amass only $180,000 in today's dollars by the time they actually retire.
Compare that with the latest Westpac ASFA Retirement Standard which states that a single retiree needs $36,141 a year for a comfortable retirement and couples require $47,371 a year. In order to accrue an income like this, singles need to amass $500,000 as a nest egg and couples an extra $50,000 on top of that. This figure does not even include your yearly rent if you don't own your own home.
If you have a real estate question or need feel free to phone me, Noel Thompson, Principal, Professionals Logan Lifestyles on 0418 517 525 or call into our offices at Browns Plains or Waterford for a friendly chat.
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