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Retirement budget planner
Fact sheet
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October 2015
Many of us will spend over a quarter of our life retired so it is important to plan for your retirement.
Have you considered how much income you will need to support the lifestyle you want in retirement
or where this income will come from?
What is your plan for retirement?
The first step in creating a retirement plan is knowing how much you will need to retire.
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Consider the following to determine what
budget you may need for your retirement:
n Am I budgeting as a single or a couple?
n Where in Australia do I want to retire?
n How often do I intend to budget:
weekly, fortnightly, monthly, quarterly
or annually?
n How long will I need to fund my retirement?
Are you putting enough money away?
According to the Australian Bureau of Statistics:
n Roughly 1.8 million people rely mainly on the Age Pension
for their income in retirement;
n Roughly 575,000 people rely mainly on superannuation
income;
n In 2011-12, 50% of retiree couples had an annual income
of less than $28,260 per year; and
n In 2011-12, 50% of single retirees had an annual income
of less than $21,700 per year.
Investing more now, even if it is a small amount can make a
big difference to the quality of your retirement in the future.
There are strategies which you can consider and calculators
on our website, developed to assist you with budgeting for
your retirement.
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Ask yourself what type of retirement
you want:
n A modest retirement lifestyle: considered
better than the Age Pension however only
affords fairly basic activities.
n A comfortable retirement lifestyle: enables an
older, healthy retiree to be involved in a broad
range of leisure and recreational activities and
tohave a good standard of living.
Case study
Tom earns $70,000 per year and would like to experience a
similarly comfortable lifestyle as experienced throughout his
working years. As a guide, Tom may need around 65%* of his
current net (after tax) income to sustain the lifestyle he would
like in retirement for around 20 years.
$70,000 x 65% = $45,500
$45,500 x 20 years = $910,000
$910,000 would afford Tom a comfortable lifestyle throughout
his retirement years.
Tom will need to look at his current savings projection to
calculate if he is on track to reach his savings goal.
* Figure assumes retirees would own their own home.