Retirement and living costs

The Westpac ASFA Retirement Standard measures the annual income Australians need to fund their retirement. The standard has recently been revised to reflect changes in living standards, retirees expectations and spending patterns such as increased expenditure on internet and electronic communications.

Data for the March 2010 quarter shows that a couple seeking a comfortable retirement lifestyle would need to spend $53,565 a year, while those seeking a modest retirement lifestyle would need to spend $30,399 a year. 

A single person looking to achieve a comfortable retirement lifestyle would need to spend $39,159 a year or $20,981 a year for a modest retirement lifestyle.

A comfortable retirement standard includes a broader range of leisure and recreational activities and items like private health insurance, a reasonable car, good clothes, electronic equipment and domestic or occasional overseas travel. A retiree on a modest retirement standard would only be able to afford more basic activities. 

Most people will probably not have enough funds to support a comfortable retirement lifestyle. If this sounds like you, it's not too late to start planning for a secure financial future, as there are a number of strategies to potentially boost your retirement income.

Important Information

The above information provides an overview or summary only and it shouldn’t be considered a comprehensive statement on any matter or relied upon as such. The above information doesn’t take into account your personal objectives, financial situation or needs. It’s important for you to consider these matters before making any financial decision and I recommend you seek help from a financial adviser.