The Meeting Place > General Discussion > AFSA standard on comfortable retiement

AFSA standard on comfortable retiement

avatar
10 yrs ago

Hi

I was wondering if there are any retirees out there who can confirm whether the AFSA standard of $56k p.a. for comfortable retirement actually holds true in practice

We wud like to retire in 2016. Will be 56 then. Given current food, utility, petrol and dining out prices, I am of the view that $56k may be a little low. I think it's probably more like $75k

Wud love to hear from people who have retired and can advise basedon real experience

Thanks

6 comments

No one but you can make that decision as it depends on your expenses. Mortgage no mortgage rent etc . One point tho is if you channel your investments through a SMSF you pay NO tax 

no mortgage, and my $75k estimate is after tax.

I understand what you're saying pete.

however, all i'm asking is if the $56k is realistic, becuase all my calculations based on our current spend and adjusting for some expenses that will drop off post retirement, i come up with a figure thats 50% over the standard.

Seggie. Depends whether you own your home plus of course, money in the bank. Be very very careful of investments with no real guarantee. To me, $56k p.a. would be incredible. I live on less than half of that but own home. I don't expect to travel the world. My advice is, if you love travel, do it now, don't wait until you are too old or your legs may go on you. It depends on what you expect of life. I'm grateful for what I've got and hopefully will continue.    

seggie- i should add, there's 2 of us, the AFSA standard of $56k is for a couple whoown their own home, ie no mortgage and no rent

Yes I agree with you the 75k figure is far more realistic . However as seggie says we can all adjust to our income up or down . 

avatar
Abby
10 yrs ago

Jaguar

Retirement age now is 67 (recent changes by ALP) and by 2016 it will be 70

so I suggest that you work for at least another 10 years as by that time you will need double what you are planning now especially if it is for two of you.

6 comments



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