24th Jul 2017

Retirement Affordability Index June 2017

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Retirement Affordability Index June 2017

As promised, the quarterly YourLifeChoices Retirement Affordability Index™ is back, reporting the latest insights into what retirement living really costs.

In our June-quarter issue of the Retirement Affordability Index™, YourLifeChoices has again partnered with think tank The Australia Institute to cut through the hype that assumes all retired households are the same.

Following the release of the latest CPI data, we have calculated the weekly, monthly and annual expenditure for each of YourLifeChoices’ six 'Retirement Tribes'.

The Retirement Affordability Index™ June 2017 will help you identify which of the six Retirement Tribes you belong to so you can compare your spending with similar households.

The June 2017 issue also includes current and contemplated Federal Budget changes to superannuation rules and Age Pension eligibility, among other factors which may affect your retirement savings.

To help you make even more sense of how you may be affected, we are joined by financial planning, economic and retirement experts, who have distilled the key considerations to keep in mind.

So here it is, the June-quarter Retirement Affordability Index™ ready for you to download in PDF format.





COMMENTS

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Raphael
24th Jul 2017
6:11pm
Affluent couple spending double affluent single ?
$71k vs $35k?
Something wrong here
Should more like $45k for single
Utilities , maintenance, home insurance, holiday travel and a host of other costs dont double for a couple
Rainey
25th Jul 2017
3:16am
Utilities, maintenance, home insurance, etc. don't double for a couple assuming the residence doesn't change, but very often the residence a couple occupies is very different from that a single would occupy.

As a single, I would likely spend well under half what we spend as a couple because my partner has very high needs due to disability and ill-health. I know of men who need their shed and tools and garden but whose wives would be content with a little easy-care one-bedroom unit, and couples that have big cars and caravans and even boats whereas the wife would have just a little ''bubble'' car and nothing else if alone. So I can see how an affluent couple could easily spend twice an affluent single's spending in many instances.
Rae
25th Jul 2017
10:00am
Yes Rainey it's more of this 'deeming' fantasy again. Just make it up, write a report and get paid heaps I expect. What a waste of time and effort.
Rae
25th Jul 2017
10:01am
Oh! and maybe if the CPI basket had any of the real rising costs included we would be better served. It is another fantasy upon which faulty decisions are being based.
Raphael
25th Jul 2017
3:39pm
Rainey- it says afflunet lifestyle

you on the other hand are not comparing apples to apples and in fact in some cases contradict yourself

on an apples to apples comparison , you cannot have a couple spending twice as much to achieve the same lifestyle
MacI
27th Jul 2017
8:12am
I find the Retirement Affordability Index only a marginal improvement on the ASFA index. We fit into the Affluent Couples tribe but only since the new assets test was introduced this year. There is no way that we can afford to spend $71500 a year and fund our retirement for our remaining years.

The Retirement Affordability Index is deeply flawed making it practically useless. For instance, a couple in the early years of their retirement and a couple in their 80s could both fit into the Affluent Couple tribe but the older couple is in a far better position to fund a $71500 per year expenditure. It is very likely that the younger couple will drop into the Constrained Couples tribe sometime during their retirement years. In fact with they only need to qualify for a small part age pension to drop into the Constrained Couple tribe.

Retirement affordability is far more complex and has to be seen in a spectrum that takes account of the number of years to be funded and individual circumstances and expectations. What qualifies as a comfortable or affluent lifestyle is subjective. For some, the "comfortable" lifestyle in retirement is well beyond the lifestyle they have been happily living with prior to retirement.
mrusability
8th Aug 2017
11:18am
Why are the June 2017 Figures exactly the same as March 2017?


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