![]() To get you started, the ASFA Retirement Standard may be helpful. That’s because it’s generally cheaper to live in retirement, with little or no tax to pay and (hopefully) no mortgage or rent. It’s often suggested you will need around 70 per cent of your pre-retirement income to continue living in the manner to which you have become accustomed. Do you want to eat out regularly, play golf, and lead an active social life or are you a homebody who enjoys gardening, craftwork or pottering in the shed?Īlso think about the cost of creature comforts, such as the ability to upgrade cars, computers and mobiles, buy nice clothes, enjoy good wine and pay for private health insurance. Maybe you want to holiday overseas every year while you are still physically active or buy a van and tour Australia. Your retirement spending will depend on your lifestyle, if you are married or single, whether you own your home and where you want to live. The best place to start is to think about your future income needs. You may even find you’re in better financial shape than you feared, but you won’t know until you do your sums. Whatever your circumstances, a financial tune-up may be required to get your retirement plans back on track. You may be concerned about a drop in your super balance, insecure work, or an uncertain investment outlook. The QSuper Retirement Income Calculator shows you what super balance you’re tracking towards, and what income that balance will likely give you.After a year when even the best laid plans have been put on hold due to COVID-19, people who were planning to retire soon may be having second thoughts. Good advice coupled with determination can get you there. ![]() The figures may seem daunting to some, but the important thing is to formulate a plan on how to achieve the level of savings you believe you will need. Go to the ASFA website for the detailed budget breakdowns, and more information about their Retirement Standard. If you’re renting, factor additional cost 4: Here are their headline costings for a comfortable retirement, but note that these figures assume home ownership. Log in to Member Online What does your retirement money get spent on?ĪSFA has broken down the weekly costs for essential and discretionary spending, making it simple for you to estimate what your retirement needs may be. 3 Rental growth has stalled in Queensland in the past five years, so ASFA’s figures hold good today, but they are still daunting. This is not necessarily a result of circumstance - people may choose to rent because it means they can live in desirable locations - by the sea, or the inner city - for a fraction of the cost of buying a place there.īut of course rent has to be paid, and that can present a challenge for retirees trying to work out how much they will need to fund their lifestyle after they clock off for the last time.ĪSFA calculated in 2017 that the lump sums needed jump to more than a million dollars for a couple, and just under seven figures for a single person. Indeed, about 285,000 households headed by someone aged 65 or over are renting. Not everyone, though, is in the fortunate position of owning their own home when they retire. Importantly though, the assumption ASFA makes is that both groups would own their own home and be in good health. The incomes needed to be generated from these amounts would be approximately $43,000 and $61,000 respectively.Ī modest retirement requires much less superannuation (approximately $70,000 for both singles and couples) due to the fact that the base rate of the Age Pension (plus various pension supplements) is sufficient to meet much of the expenditure required at this budget level. When it comes to retirement, ASFA has calculated that a single person wishing to have a “comfortable” retirement would need, at age 65, a nest egg of about $545,000, or $640,000 for a couple. The Association of Superannuation Funds of Australia (ASFA) has been tracking retirement costs for more than a decade and has come up with some benchmark figures that are very useful in planning for your post-working life. ![]() ![]() How much superannuation do you need at retirement? Can do repairs, but can’t replace kitchen or bathroom. A lifestyle which affords a good car, top-tier private health insurance, regular dining out, domestic and some international travel, and many of the trappings enjoyed during working life.īetter than the Age Pension, but still only able to afford fairly basic activities.
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