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The latest data from The Association of Superannuation Funds of Australia (ASFA) suggests retiring Australians will need 33 per cent more income per year for a “modest” retirement compared to 10 years ago*.

The amount required for a “comfortable” retirement increased 23 per cent.

ASFA said this increase was driven by electricity costs jumping by 124 per cent, health costs by 60 per cent, property rates and charges by 83 per cent and food costs by 24 per cent.

ASFA’s website reveals the amount of income required by retirees for modest and comfortable retirements:

Table 1: ASFA Retirement Standard budgets for various households and living standards for those aged around 65

Retirement standard Modest Comfortable
Single Couple Single Couple
June 2006 $18,192 $25,603 $35,430 $47,507
March 2017 $24,250 $34,855 $43,665 $59,971

*Published in Investor Daily online edition 30 May 2017

Disclaimer: This article is not legal advice and should not be relied on as such. Any advice in this document is general advice only and does not take into account the objectives, financial situation or needs of any particular person. You should obtain financial advice relevant to your circumstances before making investment decisions. Where a particular financial product is mentioned you should consider the Product Disclosure Statement before making any decisions in relation to the product. Whilst every care has been taken in the preparation of this information, Australian Unity Personal Financial Services Ltd does not guarantee the accuracy or completeness of the information. Australian Unity Personal Financial Services Ltd does not guarantee any particular outcome or future performance. Australian Unity Personal Financial Services Ltd is a registered tax (financial) adviser. Any views expressed are those of the author and do not represent the views of Australian Unity Personal Financial Services Ltd. If you intend to rely on any tax advice in this document you should seek advice from a tax professional. Australian Unity Personal Financial Services Ltd ABN 26 098 725 145, AFSL & Australian Credit Licence No. 234459, 114 Albert Road, South Melbourne, VIC 3205. This document produced in September 2017. © Copyright 2017

Categories: 2017

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