Knowing whether you have enough superannuation can be difficult.

Retirement could last for decades, living costs will change, and everyone’s idea of a comfortable lifestyle is different.

Still, there are some useful benchmarks that can give Australians an idea of what they may want to aim for.

What does a comfortable retirement cost?

The Association of Superannuation Funds of Australia (ASFA) publishes its Retirement Standard to estimate the spending required for different retirement lifestyles.

For Australians aged 65 to 84, ASFA currently estimates that a single person needs around $55,923 a year for a comfortable retirement. A couple needs approximately $78,566 annually.

That comfortable budget allows for things such as private health insurance, regular leisure activities, occasional restaurant meals, maintaining a reasonable car, home repairs, and some travel.

The figures are a lot lower for what ASFA describes as a modest retirement.

A single homeowner needs an estimated $36,434 annually, while a couple needs $52,473. Private renters face a higher hurdle, with estimated annual spending of $51,164 for a single person and $69,002 for a couple.

That difference shows why the amount of superannuation someone needs can vary so much depending on their circumstances.

So, how much superannuation is enough?

ASFA has helpfully provided its estimate for the superannuation balances required at age 67 to fund those lifestyles.

For a comfortable retirement, it estimates that a single person needs around $630,000, while a couple needs approximately $730,000 between them.

It is important to point out that this does not assume retirees will live entirely from investment income while preserving their original balance forever.

ASFA’s calculations assume retirees draw down their capital over retirement and receive a part Age Pension.

For a modest retirement, ASFA estimates required balances of $110,000 for a single homeowner and $120,000 for a couple.

Private renters need more. ASFA puts the required balance at around $340,000 for a single renter and $385,000 for a couple.

I would treat these as a starting point

I do not think there is one superannuation number that every Australian should aim for.

Someone who owns their home outright, has relatively low expenses, and qualifies for the Age Pension could need considerably less than someone paying rent or wanting to travel regularly.

Retirement age also makes a difference. The ASFA balance estimates are based on retiring at 67, so someone hoping to finish work much earlier may need to fund more years before or during retirement.

I would also want some room for unexpected expenses rather than planning around the minimum amount required to make the numbers work.

Foolish takeaway

ASFA’s latest benchmark suggests a single Australian needs around $630,000 in superannuation at age 67 for a comfortable retirement, while a couple needs around $730,000.

That gives investors something tangible to work towards, but I would not treat it as a universal target.

The amount I would want would ultimately depend on when I planned to retire, whether I owned my home, the lifestyle I wanted, and how much flexibility I wanted once regular employment income stopped.

The post How much superannuation do Australian retirees actually need? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

EchoIQ Ltd (ASX: EIQ) shares crashed 48% on Wednesday morning and closed at 64 cents.

The medical technology company told the market that the United States Food and Drug Administration had issued a Not Substantially Equivalent determination for EchoSolv HF.

EchoSolv HF is its heart failure decision support software.

Company shares traded as low as 47 cents during the session.

More than 53 million changed hands, against a one-month average of under 2.9 million.

Why EIQ shares fell so hard

The company applied through the 510(k) pathway.

That route requires a company to show its device is substantially equivalent to one already on the market.

A Not Substantially Equivalent determination means the FDA did not accept that argument.

Morgans had made EIQ’s dependence on getting this approval explicit only a week earlier.

The broker retained a speculative buy rating and a $1.85 price target at the time.

The market is still waiting on an FDA decision for its Heart Failure (HF) application, which remains the key near-term catalyst and value inflection driver. Despite delays, we maintain a positive view on approval. Speculative Buy retained and A$1.85 p/s target price unchanged.

What the company has actually said

Echo IQ has not abandoned the application.

Upon receipt of the FDA’s determination, Echo IQ, together with its US regulatory and legal advisors, its study partners, and independent statistical experts, has commenced a detailed review of the regulatory matters raised. The Company believes there is a pathway forward for clearance under the 510(k) route and intends to engage with the FDA to further clarify the matters identified in the determination and assess all administrative and regulatory options available to Echo IQ.

Managing director Dustin Haines was measured about the setback.

Our immediate priority is to understand the matters raised in full and determine the most efficient pathway forward. We remain confident in the underlying technology, the clinical rationale for EchoSolv HF and the significant opportunity to improve the identification of patients at risk of heart failure.

Two things soften the blow.

The company holds more than $105 million in cash, so it is unlikely to run out of cash any time soon.

What’s more, the company possesses a separate EchoSolv AS platform that detects aortic stenosis.

This product is already FDA-cleared, and its commercialisation is unaffected.

What this does to the Pro Medicus deal

Here is the detail that matters most.

In June, Pro Medicus Ltd (ASX: PME) agreed to invest an initial $10 million through secured convertible notes.

It also took the right to subscribe for a further $10 million once EchoSolv HF was cleared.

As such, that second tranche is now tied to an approval that has just been refused.

However, the reseller arrangement still stands.

This agreement gives Echo IQ access to Pro Medicus customers across US health systems, and it applies to the cleared product.

Where EIQ shares go from here

Context is worth keeping in mind.

Even after halving, EIQ shares are up 124% over twelve months. They remain 392% higher for the calendar year.

Investors who bought over a year ago would still be very happy.

Foolish takeaway for EchoIQ shares

The pathway forward is a regulatory one.

EchoIQ as a company now operates somewhere between a cleared aortic stenosis business and a heart failure product with no approval date.

Before investigating further, I would want to see the company’s opinion of the FDA’s specific objections.

The post EchoIQ shares just crashed 48%. What happens now? appeared first on The Motley Fool Australia.

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Motley Fool contributor Mark Verhoeven has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Life360 Inc (ASX: 360) shares are trading about 60% below where brokers think they should be, and the difference has a very specific cause.

The stock closed Wednesday at $19.64, whereas the average analyst target price is $31.72. Every broker covering the company rates it a buy or strong buy.

Why Life360 shares fell so far

The de-rating started well before the latest result.

The shares peaked at $55.44 in early October and then fell to an annual low of $17.91 by mid-April.

Most of that was sector-wide, as investors sold high-multiple technology names on fears that artificial intelligence could erode software business models.

ASX tech stocks then rallied through June and early August on a strong first quarter.

The second quarter update in mid-August ended that recovery, and the shares shed 30% of their value in the weeks that followed.

What the second quarter showed

Despite this pullback, second quarter numbers were at a record high.

Total revenue rose 38% year-on-year to US$159.0 million, and adjusted EBITDA increased 53% to US$31.1 million.

Annualised monthly revenue grew 29% to US$537.2 million and paying circles jumped 27% to 3.2 million.

Advertising revenue reached a record US$22 million, up 315%, while operating cash flow grew 79% to US$23.8 million.

Global monthly active users rose 4.6 million in the quarter to approximately 102.4 million.

Chief executive Lauren Antonoff framed the quarter around the user gowth milestone.

This quarter, Life360 crossed 100 million monthly active users—proof of the trust millions of families place in us to stay connected, coordinated, and safe. Disciplined execution drove strong Paying Circle growth and put MAU back on the growth trajectory we outlined last quarter.

However, operating expenses also rose 43% to US$127 million, largely on growth and integration costs from the Nativo acquisition.

The two details that sank the result

The first is guidance.

Life360 left FY26 revenue guidance at US$650 million to US$685 million and adjusted EBITDA at US$130 million to US$140 million.

Shareholders had grown used to upgrades, but received a reiteration instead.

The second is the quality of the earnings beat.

Bell Potter noted that paying circles grew by 185,000 against its 155,000 forecast and consensus of 136,000, and that adjusted EBITDA comfortably beat its US$25.7 million estimate.

Roughly US$4 million of that beat, however, came from a tariff refund.

Underlying adjusted EBITDA was therefore closer to US$27 million.

What brokers say Life360 shares are worth

Bell Potter kept its buy rating and trimmed its target slightly.

The net impact on our target price is a 3% decrease to $34.00 which has all been driven by the DCF due to modest downgrades and changes in working capital assumptions. We retain our BUY recommendation and note we expect the buyback to be more active this quarter after only modestly commencing last quarter.

Every analyst covering the company currently holds a buy or strong buy rating.

The $31.72 average target implies about 60% upside, and the most bullish sits above $40.

Foolish takeaway

The bull case for Life360 shares is that a company growing revenue at 38% should not trade on 25 times earnings.

The bear case is that the market no longer believes guidance will be beaten, and a tariff refund flatters the results.

I tend to agree more with the brokers than the share price, because paying circles and advertising are both compounding faster than the cost base.

In the short-term, however, Life360 shares will stay volatile until management either upgrades guidance or explains why it cannot.

The post Life360 shares are 60% below broker targets. Here’s why appeared first on The Motley Fool Australia.

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Motley Fool contributor Mark Verhoeven has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.