ASFA Retirement Standards
What is the ASFA Retirement Standard?
The ASFA Retirement Standard benchmarks the amount needed by Australians to fund either a comfortable or modest standard of living in the post-work years. It is updated quarterly (on http://www.superannuation.asn.au/resources/retirement-standard) to reflect inflation, and provides detailed budgets of what singles and couples would need to spend to support their chosen lifestyle.
Budgets for various households and living standards (December Quarter 2011)
The most recent national figures released for the ASFA Westpac Retirement Standard show that, in general, a couple looking to achieve a comfortable retirement will spend $54,562 a year, while those seeking a ‘modest’ retirement lifestyle will spend $31,263 a year.
| Modest lifestyle – single |
Modest lifestyle – couple |
Comfortable lifestyle – single |
Comfortable lifestyle – couple |
|
| Housing - ongoing only | $58.20 |
$55.87 | $67.46 | $78.20 |
| Energy | $34.35 | $45.62 | $34.86 | $47.28 |
| Food | $74.61 | $154.56 | $106.59 | $191.86 |
| Clothing | $18.08 | $29.36 | $39.14 | $58.72 |
| Household goods & services | $26.08 | $35.36 | $73.36 | $85.94 |
| Health | $34.32 | $66.24 | $68.09 | $120.18 |
| Transport | $90.21 | $94.82 | $137.41 | $140.02 |
| Leisure | $73.40 | $109.36 | $222.44 | $304.83 |
| Communications | $9.30 | $16.29 | $25.57 | $32.55 |
| Total per week | $420.57 | $607.47 | $774.93 | $1059.57 |
| Total per year | $21,930 | $31,675 | $40,407 | $55,249 |
The figures in each case assume that the retiree(s) own their own home and relate to expenditure by the household. This can be greater than household income after income tax where there is a drawdown on capital over the period of retirement. Single calculations are based on female figures. All calculations are weekly, unless otherwise stated.
Definitions of “comfortable lifestyle” and “modest lifestyle”
| Modest retirement lifestyle: | |
| Better than the Age Pension, but still only able to afford fairly basic activities. |
| Comfortable retirement lifestyle: |
| Enabling an older, healthy retiree to be involved in a broad range of leisure and recreational activities and to have a good standard of living through the purchase of such things as; household goods, private health insurance, a reasonable car, good clothes, a range of electronic equipment, and domestic and occasionally international holiday travel. |
For further information, please visit the Westpac Retirement Standards page on the ASFA website: http://www.superannuation.asn.au/resources/retirement-standard