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It is interesting how quickly, the amount required for a comfortable retirement has climbed, for those who retired 10 years ago the nest egg required would have been much less.Also the sum required will rely on the age pension supplementing the self funding, will that be possible as the tax base diminishes and the drain on it increases, as is expected?[URL unfurl="true"]https://www.smh.com.au/money/super-and-retirement/how-much-do-we-really-need-to-retire-in-comfort-20231117-p5ekuc.html[/URL]From the article:The Association of Superfunds Australia (ASFA) releases their retirement cost of living benchmarking quarterly. The latest numbers say that single people who will be eligible for the age pension, and own their own home outright will need an annual income of $50,207, while couples will need $70,806 to afford a comfortable retirement.Assuming a lifespan of 88, they say that single people need to have a superannuation balance of $595,000 and couples will have to have a balance of $690,000 when they retire.These comfortable retirement budgets assume a certain standard of living that most people want to be able to afford, but certainly not everyone will be able to. It expects that you’ll have a lifestyle that includes the purchase of comprehensive health insurance, owning your own reasonable quality car, and can afford to buy fashionable clothing and footwear fairly regularly.It also assumes that you will want to run air conditioning for heating and cooling. It budgets for you to take one domestic holiday to visit family per year and a simple international holiday every seven years. And it affords enough for you to participate actively in leisure activities like going to the club or the movies.It does not offer you enough money to take regular holidays, undertake sizable home renovations or maintain and upgrade a fancy new car, allowing only for modest renovations every 20 years. And it certainly does not allow for rent payments, although if you are eligible for a part-pension you will also be able to qualify for rent assistance which will offer some support. Nor does it accommodate the payment of significant body corporate fees.A comfortable retirement budget allocates enough money to afford top-level private health insurance, which we know costs somewhere close to $3000 for a single person and $5500 for a couple.It also factors in funds for specialist visits and pharmacy purchases. Finally, a comfortable budget allows for occasional restaurant meals, takeaways and home delivery, and an occasional store-bought coffee too.
It is interesting how quickly, the amount required for a comfortable retirement has climbed, for those who retired 10 years ago the nest egg required would have been much less.
Also the sum required will rely on the age pension supplementing the self funding, will that be possible as the tax base diminishes and the drain on it increases, as is expected?
[URL unfurl="true"]https://www.smh.com.au/money/super-and-retirement/how-much-do-we-really-need-to-retire-in-comfort-20231117-p5ekuc.html[/URL]
From the article:
The Association of Superfunds Australia (ASFA) releases their retirement cost of living benchmarking quarterly. The latest numbers say that single people who will be eligible for the age pension, and own their own home outright will need an annual income of $50,207, while couples will need $70,806 to afford a comfortable retirement.
Assuming a lifespan of 88, they say that single people need to have a superannuation balance of $595,000 and couples will have to have a balance of $690,000 when they retire.
These comfortable retirement budgets assume a certain standard of living that most people want to be able to afford, but certainly not everyone will be able to. It expects that you’ll have a lifestyle that includes the purchase of comprehensive health insurance, owning your own reasonable quality car, and can afford to buy fashionable clothing and footwear fairly regularly.
It also assumes that you will want to run air conditioning for heating and cooling. It budgets for you to take one domestic holiday to visit family per year and a simple international holiday every seven years. And it affords enough for you to participate actively in leisure activities like going to the club or the movies.
It does not offer you enough money to take regular holidays, undertake sizable home renovations or maintain and upgrade a fancy new car, allowing only for modest renovations every 20 years. And it certainly does not allow for rent payments, although if you are eligible for a part-pension you will also be able to qualify for rent assistance which will offer some support. Nor does it accommodate the payment of significant body corporate fees.
A comfortable retirement budget allocates enough money to afford top-level private health insurance, which we know costs somewhere close to $3000 for a single person and $5500 for a couple.
It also factors in funds for specialist visits and pharmacy purchases. Finally, a comfortable budget allows for occasional restaurant meals, takeaways and home delivery, and an occasional store-bought coffee too.
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