How much will I need?

Planning ahead is essential to ensure a comfortable retirement.

Many Australians reach retirement only to discover they cannot afford the lifestyle they had planned.

The Association of Superannuation Funds Australia (ASFA) has researched the cost of living in retirement.

Budgets for various households and living standards
  Total per week Total per year
Single    
Modest lifestyle $454.82 $23,651
Comfortable lifestyle $824.86 $42,893
Couple (combined)    
Modest lifestyle $655.07 $34,064
Comfortable lifestyle $1,133.11 $58,922

Source: ASFA Retirement Standard (March Quarter 2016)

The figures above reflect different components of household expenditure such as health, food, transport and leisure expenses, but also assume that retirees own their own home and are therefore not paying ongoing mortgage or rental costs.

Maximum Age Pension

The maximum pension rates payable under the Age Pension are summarised below. Your eligibility for the Age Pension and your applicable rate will depend on your individual circumstances.

Maximum payment rates for Age Pension
  Total per week Total per year
Single $391.10 $20,337
Couple (combined) $589.60 $30,659

Effective 20 March 2015.
Payment rates are adjusted on 20 March and September each year. Visit Centrelink for current rates that apply.

Individuals or couples hoping to live beyond basic means will need to consider how much more than the government Age Pension they will need in retirement.