Thanks to our high standard of living and medical advances, Australians are living longer than ever before. A male retiring at age 60 will likely spend around 22 years in retirement and a female 26 years*. While this is good news, being able to enjoy such a lengthy retirement may cost more than you think.
According to the Association of Superannuation Funds of Australia (ASFA), an individual seeking a comfortable lifestyle needs a yearly income of $40,297 (after tax)^. That requires savings of $533,088 at retirement to provide this level of income for the next 20 years+.
*Australian Government Actuary, Australian Life tables 2005-07.
^Westpac ASFA Retirement Standard, Comfortable lifestyle, Single March 2012.
+Colonial First State. May 2012. Assumptions earnings 7.7% with inflation at 3% paid via an indexed pension and net of all fees and taxes