Budgeting for your retirement

Starting with the average

The Association of Superannuation Funds of Australia, opens in new window provides rough estimates of the cost of retirement. While your retirement may differ from the average amount based on your unique circumstances and personal goals, it’s still a useful starting point.

What does a modest or comfortable retirement look like?

It is estimated that a single person (around retirement age now), will need around $27,646 p.a. for a modest retirement and $43,255 p.a. for a more comfortable retirement. Couples may need anywhere from $39,848-$61,061 p.a. .

Getting down to the specifics

To get an idea of how much you’ll need to retire, start by considering your annual cost of everyday items, bills and expenses as well. You can check your bank statements over the past three months to get a sense of the totals, but don’t forget those big ticket items like car insurance and rego that only come around once a year.

Then, add your favourite activities and estimate their combined annual cost. Consider things like dining out, going on holiday and even buying Christmas presents for your family.

Combining these figures will give you an idea of how much you’ll need per year to live your ideal retirement.