How much is enough
Today people are fitter, healthier and living longer than ever before. The good news is that many of us can expect to enjoy a retirement of about thirty years. But, just how much do you need in retirement?
The Westpac ASFA Retirement Standard Benchmarks the annual budget needed by Australians to fund either a 'comfortable' or 'modest' standard of living. For the September 2008 quarter the Westpac ASFA Retirement Standard shows a couple in retirement needs $50,561 a year to maintain a comfortable lifestyle, and a single person needs $37,829 a year.
To maintain a modest lifestyle, a couple needs $27,454 and a single person needs $19,617.
If you're interested in the costs that make up a 'comfortable' and 'modest' standard of living in retirement, you can read the Westpac ASFA Retirement Standard research report.
How much you will need in retirement will vary according to how much debt you have when you retire and the lifestyle you choose to live. Many Financial Planners use the guideline that you'll need 60-70% of your pre-retirement income each year in order to be comfortable in retirement. You may need more or less depending on your circumstances and expectations.
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Working out your retirement income needs
By involving yourself in your super you can help to ensure you have the money to fund a comfortable retirement.
You can estimate the retirement income you will require by completing the Retirement Budget Planner.
The purpose of the Retirement Budget Planner is to assist you in planning for your retirement in order to maintain your chosen lifestyle. The Retirement Budget Planner asks you to consider your future living expenses and current income. This information can then be used to plan for your retirement lump sum and pension goals.
When you have completed the Retirement Budget Planner, a summary is automatically calculated for you. You will find further information in the Understanding Super section. Or you can print out the Retirement Budget Planner and contact us to make an appointment with an RBF Super Consultant.
RBF can help you maximise your super to achieve your retirement goals.
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