Annuity number you need to retire and live a “comfortable” life, which will get you $545,000

The ‘startling’ figure required to live a ‘comfortable’ life in retirement has been revealed as Australians are increasingly worried they won’t have enough pensions to retire.

According to the Association of Super Funds Australia (ASFA), single Australians need at least $545,000 while couples need at least $640,000 in savings.

According to ASFA, a “comfortable” retirement means being able to afford private health insurance, TV and streaming services, a reliable car, home repairs, regular restaurant and movie visits, and professional haircuts.

The data found that retirees with savings of at least $545,000 can take one domestic trip per year and one international trip every seven years.

By comparison, retirees who can afford only a “modest” retirement with savings of $70,000 can expect one domestic trip per year and “a few short breaks.”

A “modest” retirement means “infrequent” cinema and take-out trips, a limited budget for home repairs, and a cheaper and older car.

The'startling' figure required to live'comfortably' in retirement has been revealed as Australians grow concerned about having enough super for retirement (stock image)

The ‘startling’ figure required to live ‘comfortably’ in retirement has been revealed as Australians grow concerned about having enough super for retirement (stock image)

Average super savings by age group

25 to 29: $21,309

30 to 34: $44,650

35 to 39: $74,963

40 to 44: $108,217

45 to 49: $145,622

50 to 54: $188,234

55 to 59: $246,771

60 to 64: $323,871

65 to 69: $383,367

70 to 74: $422,112

Source: Australian Taxation Authority data for 2019-20

For pensioners on the Government Old Age Pension, short breaks are reduced to a day trip to their own town with only ‘local club specials’ and cheap take-away food in their reduced budget.

ASFA data is based on assumptions that retirees fully own their homes and are relatively healthy.

Perth-based investor Natasha Etschmannn said it was “quite appalling” that single Australians needed $545,000 to retire comfortably.

The account manager, who regularly posts videos with tips on saving and investing money, used TikTok to share ASFA’s spending breakdown.

“That’s a pretty scary number for a single person when your partner dies and you don’t own your own house,” she said.

The figures come as a growing number of Australians increasingly fear they will not have enough pensions to retire.

New research has found that workers typically believe they will be short of $200,000, with data from AMP showing 70 percent of women are concerned about insufficient retirement savings, compared to 56 percent of men.

The AMP report showed that women aged 50 to 59 were particularly concerned about the higher cost of living.

AMP found Australians typically believed they needed $600,000 for retirement but only expected they had saved $400,000 (stock image)

AMP found Australians typically believed they needed $600,000 for retirement but only expected they had saved $400,000 (stock image)

Rising inflation and pressures on the cost of living are increasing concerns about retirement, leading to fears that Australians are “unnecessarily compromising quality of life”.

AMP found that Australians typically believed they needed $600,000 for retirement but only expected to have saved $400,000.

The latest data from the Australian Revenue Agency shows that people aged 65-69 had an average pension balance of $383,367.

This equates to an average shortfall of $151,633 for Aussies at or near retirement age, based on recommended retirement savings.

Bestselling author Scott Pape, known as Barefoot Investor, is a critic of the pension industry’s target for retirement.

A growing number of Australians are increasingly worried they won't have enough pension to retire - with $545,000 needed for a'comfortable' retirement (stock image)

A growing number of Australians are increasingly worried they won’t have enough pension to retire – with $545,000 needed for a ‘comfortable’ retirement (stock image)

“For far too long, the superindustry has toyed with the millionaires in the members’ gallery,” Pape told his supporters last month.

Pape has instead endorsed a recommendation from Super Consumers Australia, which believes $258,000 is enough for a person who has paid off their house.

The IRS data showed average retirement savings across all age groups of $145,388.

The 55-59 age group had an average balance of $246,771, compared to $108,217 for the 40-44 year olds and $323,871 for the 60-64 year olds.

The Reserve Bank of Australia expects inflation to hit a 32-year high of 7.75 per cent in 2022, bad news for households already battling rising costs of living.

https://www.dailymail.co.uk/news/article-11270763/Superannuation-figure-need-retire-live-comfortable-life-545k-you.html?ns_mchannel=rss&ns_campaign=1490&ito=1490 Annuity number you need to retire and live a “comfortable” life, which will get you $545,000

Bradford Betz

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