What do you need to retire
How much money you will need for living costs in retirement will depend on your lifestyle priorities and what you can afford.
For most people, their retirement income will consist of drawings from superannuation, savings, investments and government benefits such as the Age Pension. The following are examples of expenses provided by the Association of Superannuation Funds of Australia (ASFA), for both a comfortable and modest lifestyle, for couples and singles to maintain a healthy, vital and connected lifestyle in retirement.
The comfortable retirement standard allows retirees to maintain a good standard of living in their post work years. It accounts for daily essentials, such as groceries, transport and home repairs, as well as private health insurance, a range of exercise and leisure activities and the occasional restaurant meal. Importantly it enables retirees to remain connected to family and friends virtually – through technology, and in person with an annual domestic trip and an international trip once every seven years.
The modest retirement standard budgets for a retirement lifestyle that is slightly above the Age Pension and allows retirees to afford basic health insurance and infrequent exercise, leisure and social activities with family and friends.
Both budgets assume that the retirees own their own home outright and are relatively healthy