How much do you need for a comfortable retirement? Posted on July 9, 2020
Retirees aren’t the only ones to benefit from knowing this. It is also extremely helpful for anyone of working age to be aware of these figures and build up investments to reach them.
The Association of Superannuation Funds of Australia has helpfully created a guide and annual budget for a modest versus comfortable lifestyle.
The budgets below assume retirees own their own home outright and a relatively healthy.
Budgets for various households and living standards for those aged around 65 (March quarter 2020, national)
| Modest lifestyle | Comfortable Lifestyle | |||
| Single | Couple | Single | Couple | |
| Total per year | $28,220 | $40,719 | $44,183 | $62,435 |
Budgets for various households and living standards for those aged around 85 (March quarter 2020, national)
| Modest lifestyle | Comfortable Lifestyle | |||
| Single | Couple | Single | Couple | |
| Total per year | $26,769 | $38,285 | $42,158 | $58,491 |
Further resources, such as a details budget breakdown are available on the AFSA website: https://www.superannuation.asn.au/resources/retirement-standard
By comparison, the aged pension for a single person is $24,551.80 and for a couple is $37,013.60 per year.
Decades of hard work deserve to be rewarded with comfort and security. With proper planning, it is absolutely possible.
If you’d like to test your investment and retirement structures to see if they will deliver as intended, it can be beneficial to speak with an authorised Financial Planner. Christine Hallowes is an authorised representative of Count and a member of the Financial Planning Association of Australia.
Source: Association of Superannuation Funds of Australia. (2020). Retrieved from: https://www.superannuation.asn.au/resources/retirement-standard
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