Rising Insurance Premiums Add Strain To Retirees’ Finances, Says Super Peak Body
Media Release | 21 August 2024
The ASFA Retirement Standard
Breakdown of expenses for comfortable and modest retirement lifestyle and the estimated superannuation balance required to achieve this.
ASFA Retirement Standard
Since 2004 The ASFA Retirement Standard has served as Australia’s trusted retirement savings companion, providing a comprehensive breakdown of expenses for both a comfortable and modest lifestyle, for couples and singles to maintain a healthy, vital and connected lifestyle in retirement. It also estimates the superannuation balance required to achieve this.
ASFA Research and Resource Centre has created two separate documents to reflect the above information; the Detailed Retirement Expenditure Breakdowns estimating the weekly/annual expenses in retirement (with figures updated quarterly), and the ASFA Retirement Standard Explainer outlining the lump sums needed at retirement and how this is calculated.
Detailed Retirement Expenditure Breakdowns
How much you spend in retirement
The Detailed Retirement Expenditure Breakdowns list the weekly and annual expenditure required for both comfortable and modest lifestyles in retirement, for both couples and singles.
Updated quarterly to reflect changes to the Consumer Price Index (CPI), the budgets assume that the retirees own their own home outright and are relatively healthy.
Budgets for various households and living standards for those aged 65-84 (June quarter 2024)
Comfortable lifestyle (p. a.)
| Couple | Single |
|---|---|
| $73,337 | $52,085 |
Modest lifestyle (p. a.)
| Couple | Single |
|---|---|
| $47,731 | $33,134 |
Budgets for various households and living standards for those aged around 85 (June quarter 2024)
Comfortable lifestyle (p. a.)
| Couple | Single |
|---|---|
| $67,647 | $48,879 |
Modest lifestyle (p. a.)
| Couple | Single |
|---|---|
| $44,325 | $ 30,975 |
Note: 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.
ASFA Retirement Standard Explainer
The lump sum you need for retirement at age 67
The ASFA Retirement Standard Explainer shows the lump sum amount needed by the average Australian to fund a comfortable and modest retirement (for both couples and singles) and the methodology behind the calculations.
It is assumed that the retiree will draw down all their capital and receive a part Age Pension.
Superannuation balances required to achieve a comfortable retirement
Savings required for retirement at age 67
| Couple | Single |
|---|---|
| $690,000 | $595,000 |
Superannuation balances required to achieve a modest retirement
Savings required for retirement at age 67
| Couple | Single |
|---|---|
| $100,000 | $100,000 |
All figures in today’s dollars using 2.75% AWE as a deflator and an assumed investment earning rate of 6 per cent. The fact that the same savings are required for both couples and singles reflects the impact of receiving the Age Pension.
Note: The lump sum estimates prepared by ASFA take into account the receipt of the Age Pension both immediately and into the future. The Age Pension is adjusted regularly by either the increase in the CPI or by a measure of wages growth, whichever is higher. The ASFA lump sum figures are therefore not updated quarterly.
Comfortable retirement lifestyle for retirees
Comfortable retirement
The comfortable retirement standard allows retirees to maintain a good standard of living in their post work years. It accounts for daily essentials, such as groceries, transport and home repairs, as well as private health insurance, a range of exercise and leisure activities and the occasional restaurant meal. Importantly it enables retirees to remain connected to family and friends virtually – through technology, and in person with an annual domestic trip and an international trip once every seven years.
Modest retirement
The modest retirement standard budgets for a retirement lifestyle that is slightly above the Age Pension and allows retirees to afford basic health insurance and infrequent exercise, leisure and social activities with family and friends.
Both budgets assume that the retirees own their own home outright and are relatively healthy.
Retirement Standard Media Releases
Latest releases
Retirees continue to face record cost pressures, but the rate of increase eases, says super peak body
Media Release | 29 May 2024
The ASFA Retirement Standard methodology was last reviewed in April 2018 and figures are updated quarterly to reflect changes to the Consumer Price Index (CPI). More information on the calculation of Retirement Standards is available here.
The ASFA Retirement Standard for those aged 85 and over was first included in 2015. More information on the calculation of Retirement Standards for those aged 85 and over is available here.
