June 2016 living standards
The overall benchmarked costs of retirement for older retirees rose about 0.1% this quarter, which was less than the reported increase in the Consumer Price Index (CPI) for the June quarter (0.4%). Automotive fuel (up 5.9%) and medical and hospital services (up 4.2%) were the most significant prices increases for the quarter.
For a modest lifestyle (better than a Government pension but fairly simple living), the annual guidelines for older retirees are now $23,332 for a single or $34,598 for a couple. For a more comfortable lifestyle, the estimates for older retirees are now $38,822 for a single and $54,460 for a couple.
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.