ASFA Retirement Standard Explained: The Voice Of Superannuation Since 1962

ASFA Retirement Standard: What It Entails | Aged Care Weekly

When you’re nearing the age of retirement, there might be some days when you think about what you’ll do after quitting your job. To plan, you think of what you wish to do in the future and how much money you’ll spare.

However, you can’t get an idea of how much money you will earn because it’s pretty hard to pinpoint what exactly you need and what you want. Luckily, the ASFA Retirement Standard exists, and you’ll get a rough explanation of it here.

What does the ASFA retirement standard mean?

The ASFA Retirement Standard is a chart by the Association of Superannuation Funds of Australia (ASFA) that benchmarks the super-budget needed by Australian retirees to fund a comfortable or modest standard of living years after their retirement.

It provides detailed budgets of what single people and couples need to spend to support their chosen lifestyles. It is updated quarterly, every year, so that it can reflect inflation.

What is a modest and comfortable retirement lifestyle for retirees?

The slightly better financial aid than the average age pension that the government offers to retired citizens would be a modest retirement lifestyle. However, even if it’s limited, it can still afford the necessary activities and personal needs. It is an ideal budget plan for those who desire simple lives after retirement.

A comfortable lifestyle enables a retiree to do a wide range of leisure activities and have a good standard of living. Investing in household goods, private health insurance, good clothes, a range of electronic equipment, occasional travel every year, or even a reasonable car is a good investment.

At Daily Beacon website, you can find more information on this. The website also contains up-to-date information, news, and other topics about retirement.

How much do you need for a ‘modest’ vs. a ‘comfortable’ retirement?

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Before comparing the modest and comfortable lifestyle, you should get a general idea of retirees’ recommended retirement income in Australia.

Around 2018, The Association of Superannuation Funds of Australia (ASFA) computed that a comfortable retirement for one person requires a lump sum at the retirement of around $545,000. For a couple, the retirement income should be a lump sum of about $640,000.

To support a modest lifestyle after retiring, the ASFA states that single retirees require an income of around $28,500 p.a. A couple will need approximately $40,700 p.a. if they want a modest retirement lifestyle. As you can see, it is slightly better than the limited age pension, so it should be able to provide for your daily needs and an every-so-often personal investment.

If you want a comfortable retirement, it is stated in the ASFA that single retirees would require an income of around $44,200 p.a., while a couple will need around $62,500 p.a. This amount of money can provide you with a lot more than a modest lifestyle; it should be enough to give you a better standard of living.

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The ASFA will provide you with advice and information for super budget plans to help you work out your retirement life years early on. Take the more straightforward style of living, or choose the more adventurous lifestyle so that you can live a more enjoyable life even with your old age.

Remember to get advice about what you will do in the future to choose what budget plan you will follow. Look at your lifestyle right now and take your time in having a general understanding of what you wish to do in the future, look at your work status, income, and financial situation. Getting advice on what you want to do is on you, but the ASFA is an excellent chart that may help get information and advice.


What is the ASFA Retirement Standard?

The ASFA Retirement Standard is a guideline that outlines how much money retirees in Australia need to achieve a comfortable or modest retirement lifestyle. Developed by the Association of Superannuation Funds of Australia, this standard helps individuals understand the levels of income required for a comfortable retirement or a modest lifestyle during their retirement years.

How is the ASFA Retirement Standard calculated?

The ASFA Retirement Standard calculates the retirement income needed by examining the cost of a range of goods and services, such as household goods, private health insurance, and leisure activities. These costs are updated quarterly to reflect changes in living expenses and inflation.

What is the difference between a comfortable retirement and a modest retirement lifestyle?

A comfortable retirement allows retirees to be involved in a broad range of leisure activities and maintain a higher standard of living. This includes the ability to afford private health insurance, more expensive household goods, and regular holidays. On the other hand, a modest retirement lifestyle is more conservative and only covers the necessities, with fewer opportunities for luxuries or additional activities.

What are the estimated costs for a comfortable vs. a modest lifestyle?

According to ASFA's estimates, as of 2024, a single person might need around $44,000 per year for a comfortable lifestyle, while a modest standard of living could require around $29,000 per year. For couples, these figures are approximately $62,000 and $42,000, respectively.

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