New cost of living retirement figures
Every quarter, the Association of Superannuation Funds of Australia (ASFA) research and publish their findings detailing the cost of living in retirement. The survey benchmarks the annual budget needed by Australians who own their home to fund a comfortable or modest standard of living in retirement. It provides detailed budgets of what singles and couples would need to spend to support their chosen lifestyle.
According to national figures released by the ASFA Retirement Standard for the June 2015 quarter, couples seeking a ‘comfortable’ retirement need $58,784 pa, while those seeking a ‘modest’ retirement lifestyle need $34,051 pa. For singles, the required amounts are $42,861 pa for a comfortable lifestyle and $23,662 pa for a modest lifestyle.
It is important to consider what ASFA considers a ‘modest’ or a ‘comfortable’ lifestyle. A ‘modest’ lifestyle, in retirement, means that retirees are only able to afford fairly basic activities. Whilst a ‘comfortable’ retirement lifestyle allows 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 income required to fund even a ‘modest’ retirement is more than the maximum rate of Age Pension. Therefore having sufficient retirement income savings is critical to ensuring a desirable retirement lifestyle.
For more information on the ASFA retirement standard and funding or to get on track for your retirement, contact Liberum Financial on 07 3233 6470.
The information provided is general in nature and does not take into account your particular investment objectives, financial situation or insurance needs; we therefore recommend you seek advice tailored to your individual circumstances before making any specific decisions.
Liberum Financial and its advisers are Authorised Representatives of Fortnum Private Wealth Pty Ltd ABN 54 139 889 535 AFSL 357306 Australia Credit Licence No 357306 trading as Fortnum Financial Advisers.