Super setting current generations up for comfortable retirement: ASFA

Superannuation is setting current generations up for a comfortable retirement, according to the Association of Superannuation Funds of Australia (ASFA). Though a faster increase to the 12% Super Guarantee rate wold make this even more likely.

For people who own their own home, ASFA calculates that a couple needs $60,063 a year to be comfortable in retirement and a single person needs $43,694. After age 85 this drops to $55,382 for couples and $39,443 for singles.

This equates to $640,000 in super at retirement for couples and $545,000 for singles, assuming drawing down on capital and receiving a part pension. Read more...

Cost of retirement outpacing inflation, due to health, food and electricity

Significant increases in the cost of health care, food, electricity and rates over the past 10 years is driving the cost of retirement higher at a faster rate than CPI.

The Association of Superannuation Funds of Australia (ASFA) Retirement Standard modest budget has increased by 36% for a couple, and 33% for a single person, between June 2006 and March 2017. The ASFA Retirement Standard comfortable budget has increased by 26% for a couple and 23% for a single person over the same period.

This compares to a 28.6% increase in the Consumer Price Index (CPI) over the same period. Read more...

Retirees renting need almost twice as much super to be comfortable

Retirees living in Sydney, without a debt-free home, need almost twice as much in superannuation to enjoy the same level of comfort in retirement, says the Association of Superannuation Funds of Australia (ASFA).

According to the latest ASFA Retirement Standard, for the December 2016 quarter, retirees who are renting need significantly more in savings to have the same standard of living.

ASFA CEO Dr Martin Fahy said single or couple retirees living in Sydney who don’t own a home were at a “distinct financial disadvantage”, needing between $1,045,000 and $1,166,000 to reach the ASFA ‘comfortable’ standard. Read more...

Older retirees have lower cost of living: ASFA Retirement Standard

ASFA Retirement Standard for Older RetireesAustralian retirees in their 90s need to spend slightly less to maintain their standard of living than younger retirees, but this is still more than can be afforded solely on the Age Pension, according to the Association of Superannuation Funds of Australia (ASFA).

This finding is contained in a report by ASFA, titled Spending patterns of older retirees, released alongside a new retirement standard, the ASFA Retirement Standard for Older Retirees.

Cost of a comfortable retirement rises $1,131: ASFA

ASFA comfortable retirementThe Association of Superannuation Funds of Australia (ASFA) says the cost of a comfortable retirement for couples has risen by $1,131 annually, compared to this time last year. The cost of a comfortable retirement for singles has risen by $767.

These estimates are contained in the latest update to the ASFA Retirement Standard. The cost of a comfortable retirement for couples rose 0.3% in the September 2014 quarter. ASFA says this would require a joint superannuation balance of “around $510,000.” The cost of a comfortable retirement for singles rose more, 0.4%, requiring a super balance of “around $430,000.” Read more...

$510,000 now required for a ‘comfortable retirement’ says ASFA

ASFA - comfortable retirement, modest retirementNew figures published by the Association of Superannuation Funds of Australia (ASFA) show the cost of retirement has risen, with $510,000 now required to fund a comfortable retirement.

According to ASFA, in the forth quarter of 2013/14 the cost of a ‘comfortable retirement’ rose 0.5%, to $58,128 per year. To fund this would require a superannuation balance of around $510,000 for a couple and $430,000 for singles, based on ASFAs calculations.

To arrive at these figures ASFA has assumed that people “do not retire before qualifying for the Age Pension” and that they will receive at least a part Age Pension. Read more...