The latest Association of Superannuation Funds of Australia (ASFA) data on superannuation adequacy has shown the level of savings that will allow people to lead a ‘comfortable’ lifestyle in retirement has risen.
The ASFA Retirement Standard revealed price changes in the December quarter of last year meant retirees across the country would have to spend 0.8 per cent more to live a ‘comfortable’ life.
This translates to annual expenditure of $42,158 for an individual and $57,665 for a couple in retirement.
To achieve this, ASFA’s numbers indicated an individual would need retirement benefits of about $430,000, while a couple would require combined retirement savings of around $510,000.
Australians seeking a ‘modest’ retirement lifestyle now needed to provide for annual expenditure of $23,175 if they were single and $33,358 if they were a couple, the research showed.
According to the industry body, the figures emphasised the importance of proper planning and appropriate savings measures for people’s retirement years.
“Most people have a picture of how they want to spend their post-work years, like travelling or relaxing without the stress of money worries. However, research continues to indicate that many Australians will retire without enough savings to live the lifestyle they want to in their post-work years. As the cost of living continues to increase, so too will the pressure to save more,” ASFA chief executive Pauline Vamos said.
“Making small sacrifices today can help deliver a massive boost to your retirement savings, which is why it’s crucially important to plan for your retirement now. This may include saving a little more each week, so you can benefit later, or looking at strategies that can help safeguard you against running out of money in your later retirement years.”
