Retirement costs continue to rise
29/07/2010

Figures for the Westpac ASFA Retirement Standard have been released for the March 2010 quarter, showing retirement costs are on the rise.

The standard has been revamped to reflect the changes in living standards and includes costs not previously included in the analysis such as communication (broadband and mobile phones) and private health insurance. Energy, clothing, household goods and services, recreation and transport expenditures have also been expanded to ensure the standard remains relevant and reflects the real needs of real people.

The new figures reveal that couples looking to live comfortably in retirement need to spend $53,565 a year while those seeking a modest lifestyle need to spend $30,399. These are increases of 3.3% and 4.1% respectively compared to what would have been budgeted using the old standard.

Singles are also faced with increased costs. Those wanting to achieve a comfortable lifestyle need to spend $39,159 a year, a 3% increase from the December 2009 standard. Those seeking a modest lifestyle will require $20,981 a year, representing a 7.3% increase over the December 2009 standard.

For the full Westpac ASFA Retirement Standard research report and state based figures and media releases visit the ASFA website.

For assistance with planning your retirement, check out the following Telstra Super tools and information:

  • Planning my retirement has details on how to maximise your retirement balance, how much super is enough, when to retire and how you may be able to ease into retirement with a Transition to Retirement strategy.
  • Use our Budget planner to work out your own proposed expenditure during retirement.
  • Use the Telstra Super Simulator to estimate your super balance based on your current salary and retirement savings and compare this to your desired retirement income. The calculator allows you to vary your entries to show the impact a change in your savings pattern may have on your final super balance.
  • For expert financial advice on your retirement planning strategy, tailored to suit your own circumstances, book an appointment with Telstra Super Financial Planning. Their services are available to you at no additional cost as one of your membership benefits.