Each individual’s definition of comfortable is different. Therefore, when deciding how much you need to be comfortable, think about:
- How much you spend on the basics each year?
- Allow for extra expenditure on outings and travel as you will have extra time to do these things,
- Do you have any debt? Will this be repaid by the time you retire? If not then make sure you include any debt repayments in your expenditure.
- What big ticket items you intend or would like to purchase to enjoy during your retirement (i.e. new car, caravan, boat)
The Association of Superannuation Funds of Australia (ASFA) estimates that Australians aged around 65 who own their own home and are in relatively good health, will need the following amount of money each week and year in retirement1:
A modest lifestyle:
Single: $540 per week ($28,165 per year)
Couple: $777 per week ($40,560 per annum)
A comfortable lifestyle means someone can afford a good standard of living, be involved in a broad range of leisure and recreational activities and travel domestically and occasionally internationally2.
A comfortable Lifestyle:
Single: $846 per week ($44,146 per annum)
Couple: $1,193 per week ($62,269 per annum)
1 Association of Superannuation Funds of Australia (ASFA) Retirement Standard December 2019.
2 Association of Superannuation Funds of Australia (ASFA) Retirement Standard.