Using Australian Bureau of Statistics (ABS) research, Super Consumers Australia, a partner of CHOICE, researched what retirees typically spend and has proposed balances that provide a “rule of thumb” for what is needed to maintain living standards in retirement.
To sustain a “high” standard of living in retirement, defined as $3,115 per fortnight or $81,000/ year, will need savings of $1,003,000 by age 65.
Medium spenders using $2,462 a fortnight, or $64,000 per year would need $402,000
Respondents to the survey nominated working out how much to save for retirement as the most difficult aspect of planning for retirement
NOTE – the calculations assume no mortgage or rent.
Every personal circumstance is different and Super Consumers Australia warn the amounts are just targets. Everyone’s circumstances are different which is why everyone should seek their own financial advice.
What do you need as retirement income?
The new study found most people aimed to replicate their current standard of living in retirement. The Association of Superannuation Fund of Australia (ASFA) produces a set of retirement standards that are widely used. The use budgets to represent a “modest” and “comfortable” standard of retirement living.
Source – ASFA ‘modest’ and ‘comfortable’ standards for people aged “around 67”.
If you would like assistance planning for your retirement, our financial planning team has a range of calculators and information to assist. We provide you with the support to achieve a secure and comfortable retirement.
The best time to start planning for a secure retirement is now, so please contact our team today.