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What is the real cost of a Comfortable Retirement?
While this may be a subjective question, it is helpful to have a benchmark to compare with. One such ongoing study, the Westpac ASFA Retirement Standard, provides a comprehensive analysis of costs incurred in retirement and is updated quarterly. The study constantly reviews expenditure types so that it remains relevant to changing consumer needs and desires. The June 2010 quarterly update shows the following spending amounts:
|
Type of lifestyle |
Spending required to achieve it |
|
A comfortable lifestyle for a couple |
$53,456 |
|
A modest lifestyle for a couple |
$30,382 |
|
A comfortable lifestyle for a single |
$39,081 |
|
A modest lifestyle for a single |
$20,973 |
The definition of a 'comfortable lifestyle' is one that enables an older, healthy retiree to be involved in a broad range of leisure and recreational activities. This includes the ability to purchase/maintain such things as household goods, private health insurance, a reasonable car, good clothes, a range of electronic equipment and domestic and occasionally international travel.
A 'modest lifestyle' is defined as being better than the Age Pension, but still only being able to afford fairly basic activities.
