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What is the definition of a comfortable retirement?

Q. What is the assumed definition of a “comfortable” retirement as, according to the “Association of Superannuation Funds of Australia”, a couple would currently need to spend around $55,000 per annum” (in today’s dollars) to be comfortable. What sort of lifestyle is this? What sorts of things does it include? I might be aiming for something simpler.

Thanks! Janet

Answer

That’s a really relevant question Janet, as we all have different needs and wants. We’ve put together this brief comparison for you so that you can see what’s likely to be included in this ‘comfortable’ retirement versus a more basic retirement.

The real cost of retirement for a ‘modest’ lifestyle

  • no eating out
  • clothes from discount chains
  • no entertaining at home
  • no alcoholic drinks
  • no private health insurance
  • cheap holiday close to home

$34,911 p.a. per couple*

The real cost of retirement for a comfortable lifestyle

  • eating out from time to time
  • clothes from department stores
  • entertaining at home fortnightly
  • a few alcoholic drinks per week
  • private health insurance
  • overseas trip every five years

$60,063 p.a. per couple*

We hope this helps with your planning for your future financial needs!

Answer by VicSuper Advisory Team.

This information does not take into account your financial situation, objectives or needs. VicSuper recommends you seek professional advice for your own circumstances. It is important that you read the enclosed Financial Services Guide and Product Disclosure Statement. You can contact VicSuper to make an appointment to see one of our VicSuper representatives.

* Figures correct as per ASFA Retirement Standard Budgets report June 2017.

 

Q. What is the assumed definition of a “comfortable” retirement as, according to the “Association of Superannuation Funds of Australia”, a couple would currently need to spend around $55,000 per annum” (in today’s dollars) to be comfortable. What sort of lifestyle is this? What sorts of things does it include? I might be aiming for something simpler.

Thanks! Janet

Answer

That’s a really relevant question Janet, as we all have different needs and wants. We’ve put together this brief comparison for you so that you can see what’s likely to be included in this ‘comfortable’ retirement versus a more basic retirement.

The real cost of retirement for a ‘modest’ lifestyle

  • no eating out
  • clothes from discount chains
  • no entertaining at home
  • no alcoholic drinks
  • no private health insurance
  • cheap holiday close to home

$34,911 p.a. per couple*

The real cost of retirement for a comfortable lifestyle

  • eating out from time to time
  • clothes from department stores
  • entertaining at home fortnightly
  • a few alcoholic drinks per week
  • private health insurance
  • overseas trip every five years

$60,063 p.a. per couple*

We hope this helps with your planning for your future financial needs!

Answer by VicSuper Advisory Team.

This information does not take into account your financial situation, objectives or needs. VicSuper recommends you seek professional advice for your own circumstances. It is important that you read the enclosed Financial Services Guide and Product Disclosure Statement. You can contact VicSuper to make an appointment to see one of our VicSuper representatives.

* Figures correct as per ASFA Retirement Standard Budgets report June 2017.