How much do you really need for a comfortable retirement?
What is a comfortable amount for a “comfortable retirement”? Recent research shows that the annual value of Age Pensions paid to those entitled to maximum benefits, only amounts to just over half of what a retired single needs to live a comfortable retirement.
The Association of Superannuation Funds of Australia (ASFA), regularly publishes their calculated annual budget (based in CPI) needed by Australians to fund a comfortable standard of living, and found that to have a comfortable retirement lifestyle, retirees aged around 65 years, who live in their own home, require over $43,000 a year and for couples, over $60,000.
For those around 85 year old, who live in their own home, require over $39,000 a year and for couples, over $55,000.
They explain what is a comfortable lifestyle – 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.”
They also have a modest lifestyle – and they define as – “A modest retirement lifestyle is considered better than the Age Pension, but still only able to afford fairly basic activities.”
To learn more go to our How much do you need to retire?
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