Retirement can appear daunting for many Australians as they consider the financial requirements for a comfortable life after their working years. Recent figures from the Association of Superannuation Funds of Australia (ASFA) shed light on this, revealing the annual financial needs for retirees.

For couples who own their homes and are 65 or older, ASFA estimates that an annual income of $76,505 is necessary to maintain a comfortable lifestyle. In contrast, a single retiree will require approximately $54,240 each year.

These figures represent a noticeable increase from the previous year, with the required amounts rising by 3.5 percent for couples and 3.6 percent for singles. This uptick is closely tied to the ever-increasing cost of living, a concern that resonates with many across the nation.

As Australians plan for their future, understanding these updated financial benchmarks is crucial. It offers a clearer picture of what is needed to secure a retirement that allows individuals to enjoy their golden years without financial stress.

That’s an increase of 3.5 per cent and 3.6 per cent respectively compared to this time last year, and it’s directly connected to the rising cost of living.

Couples will need a combined $432,000.

Source: SBS News

In contrast, for those living a ‘modest lifestyle’, the estimated annual budget was approximately $20,000 lower, as they typically spend less on health insurance, cars, and take fewer holidays, among other expenses.

“Pensioners benefit from a bunch of discounts on council rates, electricity, medicines and other benefits that add up to an implicit income of thousands of dollars a year.”

Where have prices risen most?

Meanwhile, the cost of eating out has risen by around 1.3 per cent, while those staying in are paying 9.3 per cent more for media services.