March 2016 living standards
The overall benchmarked costs of retirement for older retirees decreased a little this quarter. Once again, the savings—such as from a 10% drop in the price of automotive fuel—were mostly offset by increased costs, notably for medical and hospital services, and pharmaceuticals.
For a modest lifestyle (better than a Government pension but fairly simple living), the annual guidelines for older retirees decreased about 0.1% and are now $23,160 for a single or $34,363 for a couple. For a more comfortable lifestyle, the estimates for older retirees are now $38,587 for a single and $54,122 for a couple (down 0.2%).
So how much do you need?
If you take the relevant annual figure and multiply it by the number of years* you expect to be in retirement, you will get a rough idea of how much super you need to have when you retire.
What does this mean for you?
It may mean you need more super than you thought – this could be a good reason to contact our Member Advice Consultants for personalised advice about how to maximise your savings.
*You can use the Australian Bureau of Statistics life tables for an idea of your life expectancy.