COMFORTABLE VERSUS MODEST LIFESTYLE

What will retirement look like for you? Read on as Orange Financial Planning outlines what an average ‘comfortable’ versus ‘modest’ retirement looks like in 2023.

The ASFA Retirement Standard provides an estimate on how much money you need for a modest or comfortable retirement, for both singles and couples. It also explores what a comfortable retirement looks like, versus a modest one.

The information below also compares these standards to the Government Age Pension. These estimates assume you own your home and includes budgets for various households and living standards. Calculating how much super you need to retire can depend on your daily expenses, unexpected costs, healthcare needs and lifestyle.

WHAT DOES A COMFORTABLE RETIREMENT LOOK LIKE?

What can it afford?

  • Regular leisure activities.
  • Occasional restaurant meals, home-delivery meals, take-away coffee.
  • Own a reasonable car.
  • Budget for home improvements.
  • Domestic and occasional overseas trips.
  • Premium private health insurance.

Single Household Budget Cost = $49,462 per year.

Couple Household Budget Cost = $69,691 per year.

(For those aged 65-84)

WHAT DOES A MODEST RETIREMENT LOOK LIKE?

What can it afford?

  • Occasional leisure activities.
  • Limited meals out at inexpensive restaurants, infrequent home-delivery or take-away.
  • Own a basic car.
  • Budget for small home repairs.
  • One annual domestic holiday or a few short breaks.
  • Basic private health insurance.

Single Household Budget Cost = $31,323 per year.

Couple Household Budget Cost = $45,106 per year.

(For those aged 65-84)

WHAT DOES AN AGE PENSION-BASED RETIREMENT LOOK LIKE?

What can it afford?

  • No or low-cost leisure activities.
  • Inexpensive takeaway or local club special meals.
  • Limited budget to own, maintain or repair a car.
  • No budget for home repairs.
  • Very short breaks or day trips in your city.
  • No private health insurance.

Single Household Budget Cost = $25,259 per year (maximum basic rate*).

Couple Household Budget Cost = $38,079.60 per year (maximum basic rate*).

(For those aged 65-84)

*Excludes the pension supplement and energy supplement and is subject to eligibility. Services Australia. Applicable from 20 March 2023.

Source: ASFA Retirement Standard, December quarter 2022.

 

GET PLANNING FOR THE RETIREMENT YOU WANT NOW – MAKE AN APPOINTMENT TODAY!

Give us a call at Orange Financial Planning TODAY to review your situation and see how we can help you plan for retirement. Kim Bryant is a Financial Planner with Orange Financial Planning who is Aged Care Accredited and holds a Masters FP, Grad Dip FP, and Assoc FPA

Tyron Mitchell

Contact us today on (02) 5310 4477 or drop us a line HERE!

See here for more information on Orange Financial Planning services…

WHAT WE DO – RETIREMENT PLANNING                                              

WHAT WE DO – AGED CARE

 

Also check out our blog… PLANNING FOR AGED CARE – WITH EARLY PREPARATION AND GOOD ADVICE 

Mitchell Advice Pty Ltd ABN 44 625 356 872 t/as Orange Financial Planning is a Corporate Authorised Representative of Synchron AFS License No 243313. Unless specifically indicated, the information contained is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek personal advice from a financial adviser.