The biannual update of the ASFA Retirement Standard has just been issued showing that to live a comfortable lifestyle in retirement a couple would spend around $55,000 per year. That’s a $1,000 per year increase compared to the December 2010 study.
Perhaps the most interesting aspect of this release are the projections of how much superannuation you need to accumulate to fund that lifestyle.
To fund that comfortable lifestyle ASFA estimate you need to accumulate $510,000 in superannuation (combined, in today’s dollars.)
However, ASFA project that if your household has a combined income of $100,000 earning 9% superannuation contribution over thirty years will accumulate just $366,000 (in today’s dollars).
The moral of the story is a familiar one: 9% p.a. compulsory employer superannuation is not enough to enable you to retire on your terms.
Regular readers of The Money Guide hopefully have received that message loud and clear and have taken steps to boost their Financial Independence Fund.
Sadly we observe that most Australians only get the message in their 50s when it can be too late to make a big enough difference.