This graph is shown in today's dollars which means it is adjusted to include inflation.
Both your super balance in retirement, and how long your super will last
you, depend on how well your investment plan preforms over time. Even
though our calculator uses a long-term view of investment market
performance – if markets perform better than expected, you'll have more
super for your retirement. On the contrary, if markets perform less
favourably – you'll have less super in retirement and your super may run
out earlier than expected.
It should be noted that investment returns in this calculator are assumed to
be the same each year. However, investment returns can, in reality, be
higher or lower than these assumptions at any time.
For this projection, your partner's retirement age is and your partner's life expectancy is . See Assumptions for more information.
*
Note: You may notice that the total income in retirement amount in the graph fluctuates. As the Age Pension rises with AWOTE, which is more than CPI, the chart demonstrates the Age Pension's real-term growth during retirement. Various elements, like the asset test, income test, and the minimum income stream payments, can also affect the chart, creating possible peaks and troughs.
What income in today's dollars do you need in retirement?
'Comfortable' and 'modest' are two terms you might come across often when
planning for your retirement.
Here's what they mean in the retirement industry:
- A comfortable retirement means being able to afford private health
insurance, internet at home, running your car
and a few luxuries like dining out
- A modest retirement means you may need to reduce your current standard
of
living
Association of Superannuation Funds of Australia (ASFA) has produced the
below
table1, 2
for retirees aged around 65.
The table shows the expected lifestyles for a comfortable retirement,
modest retirement and retirement relying on the Age Pension alone. These
figures are based on today's dollars which means they are adjusted to include inflation.
Comfortable3
$44,183 a year
Modest3
$28,220 a year
Age Pension2, 4
$24,552 a year
Replace kitchen and bathroom
over
20 years
No budget for home
improvements.
Can do repairs, but can't replace kitchen or bathroom
No budget to fix home
problems
like leaky roof
Better quality and larger
number
of household items and appliances and higher cost hairdressing
Limited number of household
items
and appliances and budget haircuts
Less frequent hair cuts or
getting a friend to cut your hair
Can run air conditioning
Need to watch utility costs
Less heating in winter
Restaurant dining, good range
&
quality of food
Take out and occasional cheap
restaurants
Only club special meals or
inexpensive takeaway
Fast internet connection, big
data allowance and large talk and text allowance
Limited talk and text, modest
internet data allowance
Very basic phone and internet
package
Good clothes
Reasonable clothes
Basic clothes
Domestic and occasional
overseas
holidays
One holiday in Australia or a
few
short breaks
Even shorter breaks or day
trips
in your own city
Top level private health
insurance
Basic private health
insurance,
limited gap payments
No private health insurance
Owning a reasonable car
Owning an older less reliable
car
No car or, if you have a car
it
will be a struggle to afford repairs
Take part in a range of
regular
leisure activities
One leisure activity
infrequently, some trips to the cinema or the like
Only taking part in no cost
or
very low cost leisure activities. Rare trips to the cinema