14 Jul 2020
Cost of Living in Retirement (Part 2): How much do I need?
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
Yesterday’s ASFA Retirement Standard raised a number of questions including what number is needed to fund a ‘comfortable lifestyle’ in retirement starting from the earlier age of 60.
Again, assuming a 6.9% per annum rate of return and an inflation rate of 3.0% per annum (currently 2.2% per annum according to RBA) for a couple aged 60 today, they will need $1,320,000 in addition to owning their home to receive $62,435 per annum in real terms for 40 years after which time the capital will be exhausted.
See above chart of retirement balance projection for a couple age 60 today.
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