One of the biggest questions about super — will I have enough super in retirement? — has been changing.
Australians’ increased life expectancies, along with the numbers living into their nineties, have meant that questions about how spending requirements change when people age are becoming more prominent at both a policy level and in personal financial planning.
The ASFA Retirement Standard for Older Retirees shows that as people age, their spending requirements change as they are often unable to engage in the same types of activities, and often require different types of care and support, which have different cost implications.
For figures relating to early retirement, read Will you have enough super in retirement?
December 2019 living standards
Over the year to the December quarter, the increase was 0.70% for comfortable and 0.50% for modest, compared to the general Consumer Price Index (CPI) increase of 0.7%.
For a modest lifestyle (better than a Government pension but fairly simple living), the annual guidelines are now $26,570 for a single or $37,977 for a couple. For a more comfortable lifestyle, the estimates are $41,910 for a single and $58,069 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.
The full break down of these estimates is available on the ASFA website, along with a simple calculator to show how much you may need according to your marital status and which state you live in.
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