The Westpac ASFA Retirement Standard benchmarks the annual budget needed by Australians to fund either a comfortable or modest standard of living in the post-work years. It is updated quarterly to reflect inflation, and provides detailed budgets of what singles and couples would need to spend to support their chosen lifestyle.
A better picture of retirement needs
The Westpac ASFA Retirement Standard has been revamped to give Australians a more comprehensive picture of how much they need to spend to support their retirement lifestyle. The Standard has been revised to reflect changes in living standards, new expectations of retirees and their evolving spending patterns. In particular, the budgets for Communications, Health, Energy, Clothing, Household goods and services, Recreation and Transport has been updated. For more details on the revamped Westpac ASFA Retirement Standard click here.
Budgets for various households and living standards
The most recent national figures released for the Westpac ASFA Retirement Standard show that, in general, a couple looking to achieve a comfortable retirement needs to spend $$53,565 a year, while those seeking a ‘modest’ retirement lifestyle need to spend $30,399 a year.
Budgets for various households and living standards (March Quarter 2010)
| |
Modest lifestyle
– single |
Modest lifestyle
– couple |
Comfortable lifestyle
– single |
Comfortable lifestyle
– couple |
| Housing – ongoing only |
$54.08 |
$51.91 |
$62.68 |
$72.66 |
| Energy |
$28.81 |
$38.27 |
$29.24 |
$39.65 |
| Food |
$71.76 |
$148.65 |
$102.52 |
$184.53 |
| Clothing |
$17.72 |
$28.77 |
$38.36 |
$57.54 |
| Household goods and services |
$25.73 |
$34.89 |
$72.39 |
$84.80 |
| Health |
$33.04 |
$63.77 |
$65.56 |
$115.70 |
| Transport |
$88.31 |
$90.81 |
$131.60 |
$134.10 |
| Leisure |
$73.72 |
$109.84 |
$223.41 |
$306.16 |
| Communications |
$9.18 |
$16.08 |
$25.24 |
$32.12 |
| Total per week |
$402.37 |
$582.99 |
$750.99 |
$1,027.27 |
| Total per year |
$ 20,981 |
$30,399 |
$39,159 |
$53,565 |
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.
Modest vs Comfortable retirement 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.
Looking for more information?