Will you have enough?

Everyone has different goals and dreams for their retirement. Whether it’s looking after grandchildren, travelling around Australia in a caravan or relaxing at home, you’ll need a plan to make it happen.

Comfortable or modest?

The Association of Superannuation Funds of Australia (ASFA) Retirement Standard provides an estimate of how much you may need to enjoy a comfortable lifestyle versus a modest lifestyle.

A modest retirement lifestyle is considered better than the Age Pension, but still only able to afford fairly basic activities.

A comfortable retirement lifestyle enables an older, healthy retiree to be involved in a broad range of leisure and recreational activities and to have a good standard of living through the purchase of such things as; household goods, private health insurance, a reasonable car, good clothes, a range of electronic equipment, and domestic and occasionally international holiday travel.

The figures assume that you own your home outright and are relatively healthy.

Budgets for various households and living standards for those aged around 65 (March quarter 2016, national)

  Modest lifestyle Comfortable lifestyle
  Single  Couple Single Couple
Total per year $23,767 $34,216 $42,062 $58,160

 

 Budget for various households and living standards for those aged around 85 (March quarter 2016, national)

  Modest lifestyle Comfortable lifestyle
  Single  Couple Single Couple
Total per year $23,332 $34,598 $38,822 $54,460

This is just an example, we’re all individuals when it comes to goals and dreams and it’s completely up to you what a comfortable lifestyle means to you.

It’s a good idea to get financial advice to see if you’re on track to meet your goals and dreams. AustSafe Super Financial Planners  are on hand to provide you with assistance on a range of financial matters based on your individual situation and goals. Our Financial Planners can look at your situation objectively and help you make decisions that will get your finances and super on-track.

You can use these ASFA figures as a guide to estimate how much money you’ll need, in order to have a ‘comfortable’ or ‘modest’ lifestyle in retirement. And remember, your Pension payments and any lump-sum withdrawals are tax-free once you reach age 60 and you won’t have to declare these amounts when you lodge your tax return.

Visit the ASFA website for more information on the ASFA Retirement Standard, including the budget details used to calculate the figures shown above.

1ASFA retirement living standard report – June quarter 2016 – www.superannuation.asn.au. The figures in each case assume that the retiree/s own their own home and relate to expenditure by the household. This can be greater than household income after income tax where there is a drawdown on capital over the period of retirement. Single calculations are based on female figures. All calculations are weekly, unless otherwise stated.