How much income in Retirement?

The latest ASFA Retirement Standard figures show that for a comfortable retirement a couple may need income of around $55,249 a year and for a modest lifestyle they may need $31,675 a year. These figures assume the person owns their own home, so non-homeowners need to allow for a greater level of income.

The breakup for this income is shown below, as well as the figures for a modest retirement.

Budgets for various households and living standards (December quarter 2011)

 

 

Modest lifestyle -

single

 

Modest lifestyle -

couple

 

Comfortable lifestyle -

single

 

Comfortable lifestyle -

couple

 

Housing -ongoing only

$58.20

$55.87

$67.46

$78.26

Energy

$34.35

$45.62

$34.86

$47.28

 

Food

$74.61

$154.56

$106.59

$191.86

 

Clothing

$18.08

$29.36

$39.14

$58.72

 

Household goods and services

$26.08

$35.36

$73.36

$85.94

 

Health

$34.32

$66.24

$68.09

$120.18

 

Transport

$92.21

$94.82

$137.41

$140.02

 

Leisure

$73.40

$109.36

$222.44

$304.83

 

Communications

$9.30

$16.29

$25.57

$32.55

 

Total per week

$420.57

$607.47

$774.93

$1,059.57

 

Total per year

$21,930

$31,675

$40,407

$55,249

 

 

The needs of individual clients will vary and so ASFA has also released a new retirement expenditure calculator available on their website www.asfa.asn.au.

 

 

The needs of individual clients will vary and so ASFA has also released a new retirement expenditure calculator available on their website www.asfa.asn.au

Last updated 08 February 2012

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The information contained in this publication is based on the understanding Strategy Steps Pty Ltd ABN 14130045242 AFSL 333649 has of the relevant Australian legislation as at the date shown in this publication. The information contained in this publication is of a general nature only and is intended for use by financial advisers and other licensed professionals only. It must not be handed to clients for their keeping nor can any copies of sections of this publication be given to clients. Strategy Steps is not a registered tax agent under the Tax Agent Services Act 2009. We recommend that your client be referred to their registered tax agent or legal adviser prior to implementing any recommendations that you may make based on the information contained in this publication.