Working out how much you will need in retirement depends on your personal circumstances. Not only does this depend on your own lifestyle choices, but you may have other income options in retirement (eg part time job or income from other investments).

As a guide, the Government estimates you need to save 12% of your annual income (keeping in mind that compulsory super contributions for employers is only 9 per cent) for the 40 years of your working life to give yourself an income equal to 40% of your pre-retirement salary. But wouldn't 60% be better? Therefore, if you earn $50,000 now, a good starting point might be to think of a retirement income of about $30,000 a year.

Without tax breaks and compulsory contributions from employers, few would have enough retirement income to ensure an adequate lifestyle.

It could be said for most of us that in retirement you don't spend as much. For instance, there are no daily costs in commuting to and from work and costs associated with work, no school fees and probably no mortgage, but you will still need money in order to enjoy all those extra hours you have on your hands to enjoy your new lifestyle instead of only having the pension to survive.

Use our super calculator above to estimate how much retirement income you will have when you retire and how much extra you may need to contribute to get the lifestyle you want.