​

Ah, retirement: it’s the time in life when you can finally relax, unwind, and (hopefully) enjoy all that life has to offer. But it's no secret that living your golden years comfortably and worry-free isn't cheap.

In fact, if new reports are anything to go by, you’re going to need to set aside more money to maintain your desired lifestyle in retirement.

The Association of Superannuation Funds of Australia (ASFA) has recently lifted their 'comfortable retirement standard' to a record-high of $70,482 per year for couples, and $50,004 for singles, representing a 1.1 per cent increase in the March quarter.

This means the anticipated cost of retirement has gone up 7.7 per cent in the past year. That's a lot of money, especially for those who have already retired or who are actively saving towards it.

Do you have enough saved for a comfortable retirement? Image Credit: Shutterstock

Speaking on the matter, ASFA's CEO, Dr Martin Fahy, said: 'Retiree budgets have been under substantial pressure for over 18 months due to the higher cost of essential goods and services, namely food, fuel and electricity, with the latter up 15 per cent over the past year.’

Dr Fahy goes on to detail how self-funded retirees will not benefit from Federal Budget measures aimed at reducing cost-of-living pressures and, despite recent changes to the Age Pension, the payments continue to lag behind inflation.

‘Self-funded retirees will not be eligible for Federal Budget measures aimed at relieving cost-of-living pressures, and despite recent adjustments to the Age Pension, payments continue to lag inflation.' continued Fahy.

An ASFA report also found that medical and hospital services costs, pharmaceutical products, and insurance costs all increased by 4.2 per cent, 4.5 per cent, and 3.5 per cent, respectively, in the March quarter.

The updated 'comfortable retirement standards'. Image Credit: SDC

Despite all this, Dr Fahy remains positive: 'Fortunately, we are seeing a turnaround in term deposit income, and critically, the July 1 increase in the super guarantee (SG) rate to 11 per cent will put a greater number of Australians on track to achieve the dignified retirements they deserve.'

The Association of Superannuation Funds of Australia

The Association of Superannuation Funds of Australia (ASFA) is the peak body for the supervised funds sector which covers both superannuation and retirement income. Established in 1977, the ASFA serves to protect the rights and interests of retirees and those preparing for retirement with the long-term vision of achieving a system which delivers financial security and comfort for current and future retirees. ASFA advocates for better government policies, regulations and practices in support of those individuals.

As Dr Martin Fahy, CEO of ASFA explains, ‘Retirees need to be aware of the increasing costs of living and budget their finances carefully. The ASFA Retirement Standard is a valuable resource to help them with this.’

The Association actively collects, analyses and disseminates data related to superannuation and retirement incomes, providing insights into how the various funds are responding to the changing needs of society. The data produced by the ASFA team provides Australians and their advisers with an invaluable tool for understanding the cost-of-living impacts on retirees in the current economic environment, and enables them to have a better understanding of how their current retirement plans are tracking.

Key Takeaways

• The cost of maintaining a comfortable retirement in Australia is hitting record highs, with the Association of Superannuation Funds of Australia (ASFA) raising the 'comfortable retirement standard' by 1.1 per cent in the March quarter.
• The new standard for couples is now at $70,482 per year, and $50,004 for singles, resulting in an annual increase of 7.7 per cent.
• Higher costs of essential goods and services such as food, fuel, electricity, and healthcare are putting pressure on retiree budgets.
• Some relief may come from the July 1 increase in the super guarantee rate to 11 per cent, which aims to put more Australians on track for a dignified retirement.

What can we take away from this news? It might be time to review your financial position, and perhaps consider speaking to a financial adviser to ensure that you're on track to maintain a comfortable retirement. After all, security and peace of mind allow us to enjoy life's true treasures - time with family, new experiences, and savouring the golden years without financial stress.

Remember, the more informed you are, the better you can manage your retirement savings and expenses, ensuring the quality of life you all deserve. So, dear members, stay clever, stay informed, and be ready to enjoy the best your golden years have to offer!
We recently wrote about a survey that revealed two-thirds of Aussies are worried about retirement savings. You can read the full article here.

What do you think about this news, members? We’d love to hear from you in the comments below.

 

[Cheezil]

​

Ah, retirement: it’s the time in life when you can finally relax, unwind, and (hopefully) enjoy all that life has to offer. But it's no secret that living your golden years comfortably and worry-free isn't cheap.

In fact, if new reports are anything to go by, you’re going to need to set aside more money to maintain your desired lifestyle in retirement.

The Association of Superannuation Funds of Australia (ASFA) has recently lifted their 'comfortable retirement standard' to a record-high of $70,482 per year for couples, and $50,004 for singles, representing a 1.1 per cent increase in the March quarter.

This means the anticipated cost of retirement has gone up 7.7 per cent in the past year. That's a lot of money, especially for those who have already retired or who are actively saving towards it.

View attachment 20913

Do you have enough saved for a comfortable retirement? Image Credit: Shutterstock

Speaking on the matter, ASFA's CEO, Dr Martin Fahy, said: 'Retiree budgets have been under substantial pressure for over 18 months due to the higher cost of essential goods and services, namely food, fuel and electricity, with the latter up 15 per cent over the past year.’

Dr Fahy goes on to detail how self-funded retirees will not benefit from Federal Budget measures aimed at reducing cost-of-living pressures and, despite recent changes to the Age Pension, the payments continue to lag behind inflation.

‘Self-funded retirees will not be eligible for Federal Budget measures aimed at relieving cost-of-living pressures, and despite recent adjustments to the Age Pension, payments continue to lag inflation.' continued Fahy.

An ASFA report also found that medical and hospital services costs, pharmaceutical products, and insurance costs all increased by 4.2 per cent, 4.5 per cent, and 3.5 per cent, respectively, in the March quarter.

View attachment 20914

The updated 'comfortable retirement standards'. Image Credit: SDC

Despite all this, Dr Fahy remains positive: 'Fortunately, we are seeing a turnaround in term deposit income, and critically, the July 1 increase in the super guarantee (SG) rate to 11 per cent will put a greater number of Australians on track to achieve the dignified retirements they deserve.'

The Association of Superannuation Funds of Australia

The Association of Superannuation Funds of Australia (ASFA) is the peak body for the supervised funds sector which covers both superannuation and retirement income. Established in 1977, the ASFA serves to protect the rights and interests of retirees and those preparing for retirement with the long-term vision of achieving a system which delivers financial security and comfort for current and future retirees. ASFA advocates for better government policies, regulations and practices in support of those individuals.

As Dr Martin Fahy, CEO of ASFA explains, ‘Retirees need to be aware of the increasing costs of living and budget their finances carefully. The ASFA Retirement Standard is a valuable resource to help them with this.’

The Association actively collects, analyses and disseminates data related to superannuation and retirement incomes, providing insights into how the various funds are responding to the changing needs of society. The data produced by the ASFA team provides Australians and their advisers with an invaluable tool for understanding the cost-of-living impacts on retirees in the current economic environment, and enables them to have a better understanding of how their current retirement plans are tracking.

Key Takeaways

• The cost of maintaining a comfortable retirement in Australia is hitting record highs, with the Association of Superannuation Funds of Australia (ASFA) raising the 'comfortable retirement standard' by 1.1 per cent in the March quarter.
• The new standard for couples is now at $70,482 per year, and $50,004 for singles, resulting in an annual increase of 7.7 per cent.
• Higher costs of essential goods and services such as food, fuel, electricity, and healthcare are putting pressure on retiree budgets.
• Some relief may come from the July 1 increase in the super guarantee rate to 11 per cent, which aims to put more Australians on track for a dignified retirement.

What can we take away from this news? It might be time to review your financial position, and perhaps consider speaking to a financial adviser to ensure that you're on track to maintain a comfortable retirement. After all, security and peace of mind allow us to enjoy life's true treasures - time with family, new experiences, and savouring the golden years without financial stress.

Remember, the more informed you are, the better you can manage your retirement savings and expenses, ensuring the quality of life you all deserve. So, dear members, stay clever, stay informed, and be ready to enjoy the best your golden years have to offer!
We recently wrote about a survey that revealed two-thirds of Aussies are worried about retirement savings. You can read the full article here.

What do you think about this news, members? We’d love to hear from you in the comments below.

Its a joke, right? If this is the case, I'm in trouble & got no hope already, earning less than half of this, even tho i currently work (as a cleaner) around 45-49hrs per week! Who even earns $70k per yr anyway? Someone forgot to give the ASFA the memo about wages being stagnant & inflation/cost of living being outrageous!
We are fast becoming a 3rd world country it seems

 

[joshram]

​

Ah, retirement: it’s the time in life when you can finally relax, unwind, and (hopefully) enjoy all that life has to offer. But it's no secret that living your golden years comfortably and worry-free isn't cheap.

In fact, if new reports are anything to go by, you’re going to need to set aside more money to maintain your desired lifestyle in retirement.

The Association of Superannuation Funds of Australia (ASFA) has recently lifted their 'comfortable retirement standard' to a record-high of $70,482 per year for couples, and $50,004 for singles, representing a 1.1 per cent increase in the March quarter.

This means the anticipated cost of retirement has gone up 7.7 per cent in the past year. That's a lot of money, especially for those who have already retired or who are actively saving towards it.

View attachment 20913

Do you have enough saved for a comfortable retirement? Image Credit: Shutterstock

Speaking on the matter, ASFA's CEO, Dr Martin Fahy, said: 'Retiree budgets have been under substantial pressure for over 18 months due to the higher cost of essential goods and services, namely food, fuel and electricity, with the latter up 15 per cent over the past year.’

Dr Fahy goes on to detail how self-funded retirees will not benefit from Federal Budget measures aimed at reducing cost-of-living pressures and, despite recent changes to the Age Pension, the payments continue to lag behind inflation.

‘Self-funded retirees will not be eligible for Federal Budget measures aimed at relieving cost-of-living pressures, and despite recent adjustments to the Age Pension, payments continue to lag inflation.' continued Fahy.

An ASFA report also found that medical and hospital services costs, pharmaceutical products, and insurance costs all increased by 4.2 per cent, 4.5 per cent, and 3.5 per cent, respectively, in the March quarter.

View attachment 20914

The updated 'comfortable retirement standards'. Image Credit: SDC

Despite all this, Dr Fahy remains positive: 'Fortunately, we are seeing a turnaround in term deposit income, and critically, the July 1 increase in the super guarantee (SG) rate to 11 per cent will put a greater number of Australians on track to achieve the dignified retirements they deserve.'

The Association of Superannuation Funds of Australia

The Association of Superannuation Funds of Australia (ASFA) is the peak body for the supervised funds sector which covers both superannuation and retirement income. Established in 1977, the ASFA serves to protect the rights and interests of retirees and those preparing for retirement with the long-term vision of achieving a system which delivers financial security and comfort for current and future retirees. ASFA advocates for better government policies, regulations and practices in support of those individuals.

As Dr Martin Fahy, CEO of ASFA explains, ‘Retirees need to be aware of the increasing costs of living and budget their finances carefully. The ASFA Retirement Standard is a valuable resource to help them with this.’

The Association actively collects, analyses and disseminates data related to superannuation and retirement incomes, providing insights into how the various funds are responding to the changing needs of society. The data produced by the ASFA team provides Australians and their advisers with an invaluable tool for understanding the cost-of-living impacts on retirees in the current economic environment, and enables them to have a better understanding of how their current retirement plans are tracking.

Key Takeaways

• The cost of maintaining a comfortable retirement in Australia is hitting record highs, with the Association of Superannuation Funds of Australia (ASFA) raising the 'comfortable retirement standard' by 1.1 per cent in the March quarter.
• The new standard for couples is now at $70,482 per year, and $50,004 for singles, resulting in an annual increase of 7.7 per cent.
• Higher costs of essential goods and services such as food, fuel, electricity, and healthcare are putting pressure on retiree budgets.
• Some relief may come from the July 1 increase in the super guarantee rate to 11 per cent, which aims to put more Australians on track for a dignified retirement.

What can we take away from this news? It might be time to review your financial position, and perhaps consider speaking to a financial adviser to ensure that you're on track to maintain a comfortable retirement. After all, security and peace of mind allow us to enjoy life's true treasures - time with family, new experiences, and savouring the golden years without financial stress.

Remember, the more informed you are, the better you can manage your retirement savings and expenses, ensuring the quality of life you all deserve. So, dear members, stay clever, stay informed, and be ready to enjoy the best your golden years have to offer!
We recently wrote about a survey that revealed two-thirds of Aussies are worried about retirement savings. You can read the full article here.

What do you think about this news, members? We’d love to hear from you in the comments below.

Its a joke, right? If this is the case, I'm in trouble & got no hope already, earning less than half of this, even tho i currently work (as a cleaner) around 45-49hrs per week! Who even earns $70k per yr anyway? Someone forgot to give the ASFA the memo about wages being stagnant & inflation/cost of living being outrageous!
We are fast becoming a 3rd world country it seems

 

[Trudi]

When I read this, I was reminded of an article in Money Magazine of a few years ago, which blew the amount needed for a comfortable retirement as suggested by ASFA and financial advisers out of the water. Susan Hely suggested that there is a "sweet spot" that maximises the benefits by combining super savings with the age pension. I realise the amounts used are somewhat outdated, but the principle involved still stands. https://www.moneymag.com.au/275k-super-retire

I remember even back in the early years of this century, when I was still working and pushing as much into super as I could afford - only to see my savings halved during the global financial crisis in 2008, ASFA was pushing the concept that $1mil super savings was required for a comfortable retirement.

So I take most of what ASFA with a pinch of salt.

 

[joshram]

Its a joke, right? If this is the case, I'm in trouble & got no hope already, earning less than half of this, even tho i currently work (as a cleaner) around 45-49hrs per week! Who even earns $70k per yr anyway? Someone forgot to give the ASFA the memo about wages being stagnant & inflation/cost of living being outrageous!
We are fast becoming a 3rd world country it seems

My husband and I live very comfortably on a lot less than this and even save. We can go on short holidays, go out to dinner occasionally and we have a lot more disposable income than when we were working and had children. We don't smoke and drink very little alcohol but we spend quite a lot on food. We don't need to buy much by way of clothing or household goods and we own our own home and have no debts. We socialise a lot but in our own homes, now that we're older we don't go out much at night but have friends over for lunch frequently. I attend a lot of exhibitions, but most of the books I buy are from second-hand stores or op shops. If we wanted to be more careful we could save more than we do but we can't see the point of deliberately saving at our age.

 

[Thecheesequeen]

My husband and I live very comfortably on a lot less than this and even save. We can go on short holidays, go out to dinner occasionally and we have a lot more disposable income than when we were working and had children. We don't smoke and drink very little alcohol but we spend quite a lot on food. We don't need to buy much by way of clothing or household goods and we own our own home and have no debts. We socialise a lot but in our own homes, now that we're older we don't go out much at night but have friends over for lunch frequently. I attend a lot of exhibitions, but most of the books I buy are from second-hand stores or op shops. If we wanted to be more careful we could save more than we do but we can't see the point of deliberately saving at our age.

We live much the same lifestyle, except that we do eat out quite a lot - at least once a week and often more. We retired with very little super, and receive the full pension. The key to living well in retirement is owning your home. I don’t know how people manage if they have rent to pay.

 

[Macarj]

Total rubbish assuming you own your home which they state why would you need $70000 per year as a retired couple, we would be lucky to spend $20000 per year and we don't want for anything now obviously different if you are renting I don't know how people manage on a pension if they are renting

 

[Chappy]

Has anyone heard of the National Welfare Fund???? It was started by the Labour government in 1945 originally to look after war widows but was expanded to cover all Welfare payments. Personal income tax was raised by 7.5% to pay for it and it was meant to be kept separate from other tax funds. As soon as Sir Robert Menzies the founder of the Liberals got in he decided it would be better in the general tax pool. The 7.5% was never rescinded. So in all truth we have all paid for our pensions.

 

[Cheezil]

My husband and I live very comfortably on a lot less than this and even save. We can go on short holidays, go out to dinner occasionally and we have a lot more disposable income than when we were working and had children. We don't smoke and drink very little alcohol but we spend quite a lot on food. We don't need to buy much by way of clothing or household goods and we own our own home and have no debts. We socialise a lot but in our own homes, now that we're older we don't go out much at night but have friends over for lunch frequently. I attend a lot of exhibitions, but most of the books I buy are from second-hand stores or op shops. If we wanted to be more careful we could save more than we do but we can't see the point of deliberately saving at our age.eema

Yes, i think it costs me more to go to work than it does to not go to work somehow (being on minimum wage) & spending a fortune on fuel (& keeping the cars reliable, etc) to get there as well as half decent food to keep the stamina up (or medical costs if i dont keep healthy), appropriate clothing/uniforms/
shoes, etc, taxes& of course there's usually no concessions on anything when working either!
Not sure why i put myself thru 45-49hrs wk of it thats for sure, must be mad!

 

[Trudi]

You are correct. Going to work is quite expensive for a lot of people. There is the cost of work appropriate clothing, transport, take away coffees, supplying morning tea for the team, lunches with the girls/guys, even contributing to gifts when team members leave.

Since retiring I don't purchase nearly as many new clothes, shoes, handbags, etc and the only time I wear make-up is if I go out. Tracky pants, t-shirts and slippers are my at home uniform. My car spends a lot of time in the garage and if I decide to go into the city (not very often), I catch a tram (free travel), saving around $10 parking fees for a couple of hours per trip.

 

[SGH]

Total rubbish assuming you own your home which they state why would you need $70000 per year as a retired couple, we would be lucky to spend $20000 per year and we don't want for anything now obviously different if you are renting I don't know how people manage on a pension if they are renting

I calculated all of of bills for a year and included extra for inflation, we spend $20,000.00 on insurance, regos, health benefits, and rates etc. You also need to remember to allow for gifts as well in your calculation.

 

[Trudi]

I calculated all of of bills for a year and included extra for inflation, we spend $20,000.00 on insurance, regos, health benefits, and rates etc. You also need to remember to allow for gifts as well in your calculation.

I have a separate bank account for my essential expenses covering my home (rates, water, electricity, insurance, gas, internet, mobile and landline), car (registration, insurance, maintenance and NRMA), and other (Mailbox, Malwarebytes, Drivers licence, Accounting body membership and presents).

My "Budget" spreadsheet goes back to the 2016/17 financial year and my yearly expenditure has fluctuated between $13,000 and $14,000. Each fortnight I put $510.00 into the "Budget" bank account and the balance fluctuates between $3,500 and $6,000 depending on which bills fall due at any given time. From 1 July I will increase the amount transferred to the "Budget" account by $10.00

I do not include fuel and food in my "essential" expenses as I consider them to be discretionary up to a point, especially with a full pantry and freezer I can skip the odd shopping day or two.

 

[Cheezil]

I calculated all of of bills for a year and included extra for inflation, we spend $20,000.00 on insurance, regos, health benefits, and rates etc. You also need to remember to allow for gifts as well in your calculation.

Yes i do similar & indeed it is surprising how much i spend on other people (rest of my budget is fairly cheap)

 

[Ricci]

I really don't need some jumped up mob earning squillions to tell me I'm behind the eight ball. The calculations are simple, anyone can do it - Money in minus money out if the answer is positive you're lucky and if it's not you're up s**t creek.