'
How much super do you need? The new figure to retire comfortably
International

How much super do you need? The new figure to retire comfortably

author
2 minutes, 52 seconds Read

According to the Association of Superannuation Funds of Australia (ASFA), the cost of a comfortable retirement is higher than ever before.
The peak body’s CEO, Mary Delahunty, said that thankfully the average superannuation account balance has also risen to a record high.
The average balance is $172,834 for nearly 18 million retirement account holders over the age of 15. For people ages 65 to 69, the average balance is about $420,934.
“More Australians than ever before are reaching retirement with meaningful super behind them,” she said.

But for many Australians it may not feel that way.

So how much do you need?

There are many factors that influence how much money you need, such as whether you are entitled to an old-age pension, whether you own a home and your living situation.
Most calculations take into account a more modest budget option versus a more comfortable lifestyle, including things like travel abroad and subscriptions to streaming services.
According to ASFA, linked homeowners age 65 and older need $76,505 each year to live comfortably in retirement.

A single person needs about $54,240 each year.

According to ASFA, linked homeowners aged 65 and over need $76,505 each year to live comfortably in retirement, while a single person needs about $54,240 per year. Source: SBS news

That’s an increase of 3.5 percent and 3.6 percent respectively compared to this time last year, and is directly related to the rising cost of living.

The group estimated that retirees over 85 who own their own homes would need less money, and offered about $71,104 as a guideline for a couple and $47,534 for a single person.
A separate estimate from Super Consumers Australia, a group that advocates for lower- and middle-income superconsumers, suggests an average single homeowner would need about $322,000 in superannuation for a comfortable retirement.

Couples need a combined $432,000.

FSIREMENT DATAVIS 02.png

Source: SBS news

In contrast, the estimated annual budget for those who led a “modest lifestyle” was about $20,000 lower because they typically spent less on health insurance, cars and took fewer vacation days, among other expenses.

Experts say it takes even less to have a secure retirement, especially if you own your own home.
Joey Moloney, deputy director of the Grattan Institute’s housing and economic security program, previously told SBS News that the real cost of retirement could be even lower because retirees typically spend less when they stop working.
“If you look at people’s spending habits, from pre-retirement to post-retirement, you see that people are spending less in retirement and this is happening more and more as retirement progresses,” he says.

“Pensioners benefit from a host of discounts on municipal rates, electricity, medicines and other benefits that together provide an implicit income of thousands of dollars per year.”

Where have prices risen the most?

In the September quarter alone, electricity prices increased by 9 percent.
Over the past twelve months the increase is closer to 25 percent.

Meanwhile, the cost of dining out has risen by about 1.3 percent, while those staying in are paying 9.3 percent more for media services.

Delahunty said the holidays will be a challenging time for many retirees as prices have risen fastest on the things they spend the most on, such as “food, energy and health.”
“Some older adults may cut back on more expensive gifts, travel and social occasions to stay on top of basic needs,” she said.
“The challenge now is to continue to strengthen the system so that every Australian has the best possible chance of a comfortable, dignified retirement, not just at Christmas but all year round.”

#super #figure #retire #comfortably

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *