Do the sums to make sure you can enjoy the retirement you deserve
The policy, research and advocacy body for Australian superannuation, ASFA, calculates two important retirement income statistics each year: the amount needed for a modest retirement and the amount for a comfortable retirement.
ASFA’s definition of a modest retirement is not much above the poverty line and not much above the aged pension at $67 a day. The amount for a comfortable retirement is a little more.
“Comfortable means you can go to the club and have a meal or have a big overseas holiday every seven years. It’s about having dignity in retirement, and having worked so hard your entire life you deserve not to worry about every penny,” says ASFA deputy chief executive Glenn McCrea.
The standard is calculated by looking at what most Australians want in retirement, through surveying focus groups of retirees and pre-retirees, and also using the Australian Bureau of Statistics expenditure weighted box of goods and services.
The amount for a modest lifestyle, if you are a homeowner, is calculated as $40,000pa for a couple and $28,000
