Superannuation by itself is not enough…..

I was at a network event yesterday and I was talking to a gentleman about superannuation. He told me something profound and simple that just really struck a chord with me.

He said superannuation on its own does not work and can’t work. Just think about it. You work for 40 years of your life and for those 40 years you rely on 100% of your income for your lifestyle, your living expenses. Then when you retire, you need to rely on 10% of that income because on average that what is being put away into Super.

10% Of your income for possibly the next 40 years. That doesn’t work….. Now I understand that there is growth in your superannuation and accumulative growth. But as a concept, I thought that is so simple but so true. How can -even it’s 20, 30 years-, how can that be enough 10% of the income that you’ve earned over those 40 years be enough to fund your lifestyle that you used to?

That you’re accustomed to, that you’re comfortable with, that you like for the next 20, 30, 40 years?

It doesn’t add up…..