Is $1 million really enough to retire?

Opinion is divided about whether or not Aussies need more than $1 million to fund their financial retirement.

Financial experts say it’s a good start, but young investors believe its no where near enough.

It’s predicated that Aussies will run out of their savings at retirement unless their superannuation tops $1.2 million.

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“$1 million is a good starting field. With a $1 million of super, earing 4% interest gives $40,000 of income, which is a good starting figure,” William Buck Financial Planners director Chris Kennedy said.

But its all about how the money is invested.

“It’s not so much about the amount you have in your super, but more about what that amount is going to earn,” he said.

However young investors believe they’re going to need a lot more than $1 million to help them enjoy their twilight years.

“I don’t think it’s enough at all, not enough to have a comfortable retirement,” investor Nina Crawford said.

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“I’m hoping to have enough savings to get through my retirement, and the old age pension might not always be around,” she said.

Crawford and her husband explained that not only do the need to fund their own retirement, they also want to ensure they leave enough behind for their children and grandchildren.

Meanwhile, historically low interest rates continue to pose challenges for self-funded retirees and changes to superannuation announced in the Federal Budget are only adding to their woes.