11 Jul 2016
Retirement: Cost of Living
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
If you are a retired couple who owns your own home and wants a ‘comfortable lifestyle’ in retirement then according to the ASFA Retirement Standard you need $58,922 per annum.
The figure is $42,893 per annum if you are single and want a ‘comfortable lifestyle’ in retirement. See spending breakdown attached.
A comfortable retirement lifestyle is one that allows for a broad range of leisure and recreational activities and to have a good standard of living through the purchase of things such as household goods, private health insurance, a reasonable car, good clothes, a range of electronic equipment and domestic plus occasionally international holiday travel.
If we assume a 7.4% per annum rate of return and an inflation rate of 3.0% per annum then you will need $991,000 today in addition to owning your own home just to received $58,922 per annum in real terms for the next 30 years after which time the capital will be exhausted.
This is another stark reminder of why it is important to just keep saving and accumulating for retirement.
At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.
