Planning for retirement can be a daunting experience with so many options to consider, like superannuation, pension accounts, annuities, asset returns and more.
Australians are living longer and healthier lives than ever before1, so when it comes to planning for retirement, making sure you have enough money to cover you comfortably throughout your golden years is critical. Inflation, unexpected illnesses, and life’s general surprises can all affect your savings in your retirement years.
There are varied ways to support yourself financially during retirement, including:
- superannuation either in increments or a lump sum
- personal savings
- the Age Pension
Below is the Association of Superannuation Funds of Australia's (ASFA) March 2023 estimation of how much money is needed for retirement, depending on your chosen lifestyle.
|ASFA Retirement Standard2||Annual living costs||Weekly living costs|
|Couple – modest||$45,808||$877.55|
|Couple – comfortable||$70,482||$1,350.23|
|Single – modest||$31,785||$608.91|
|Single – comfortable||$50,004||$957.94|
A ‘comfortable’ lifestyle assumes a good standard of living which can include costs for private health insurance, a car in good condition, consumer goods and regular holidays, while a ‘modest’ one may simply cover the basics. These standards are based on the assumption that you will retire at 65 and live up to 85 and that you own your home.2
With Australians living longer than ever before1, many of us will spend decades as retirees, so planning for retirement is critical. Whatever you decide to do, planning ahead can help you get the most out of your retirement.
Note: This is general information only and should not be taken as financial advice. You should consult a professional for any advice relating to your financial affairs and individual circumstances.
- Life expectancy hits a new high – Australian Bureau of Statistics
- Association of Superannuation Funds of Australia Retirement Standard
Seniors Super coming soon
Planning for retirement now could be the difference between a decent retirement or one that is less than ideal, so take steps to ensure you will have enough money for your golden years.
Find out more about Australian Seniors’ new superannuation product by registering your interest today.