The answer is up to you
Everyone has different expectations of what their lifestyle will be like in retirement, so it’s difficult to come up with one figure that fits all. However, as a guide, the Association of Superannuation Funds of Australia Limited (ASFA) has tracked the cost of living in retirement.
Their research shows that a single person wanting a comfortable lifestyle in retirement will need $40,407 p.a. A couple will need $55,249 p.a. (ASFA Retirement Standard December 2011). A detailed budget breakdown of these amounts can be found on the ASFA website. Or use the ASFA Retirement Standard calculator.
What’s a comfortable lifestyle?
You can enjoy the good life – within reason. According to the research, a comfortable lifestyle enables a retiree to have “a good standard of living including the ability to purchase household goods, private health insurance, a reasonable car, good clothes, a range of electronic equipment, and domestic and occasionally international holiday travel”.
Of course, if your retirement plans include home renovations, a boat or regular trips overseas, you’ll need to increase your retirement figure. On the other hand, if you have more modest requirements in retirement, you might not need as much to live on.
