If you spend any time at all watching television, you’ll know it’s hard to avoid the persistent advertisements for superannuation. Whether you are being cajoled to “compare the pair”, join “one of those” or remember that “we’re all in this together”, you couldn’t be blamed if the balance of your retirement savings wasn’t ever far from your mind. Clever slogans aside, how much money do you actually need to have squirrelled away in savings and super in order to retire and live comfortably? According to the Association of Superannuation Funds of Australia (ASFA), the national peak body for superannuation, you might not need much as you think.
You decide what your comfortable retirement looks like
Of course, the key term in the question above is comfortable. What exactly would a comfortable retirement look like for you? The ability to travel? Buying that boat you’ve always wanted? Taking the time to write that novel that you never got around to? For many people, living comfortably simply means maintaining the lifestyle they currently enjoy – one that allows them to do the things that make them happy, to remain connected with loved ones, to maintain good health, and to avoid unnecessary stress and worry.
ASFA notes that the difference between a modest lifestyle – one in which your basic needs are met, with limited wiggle room for life’s little pleasures – and a comfortable lifestyle are things such as:
- having access to private health insurance
- having the means to own, maintain and run a reasonable car
- the confidence to use home comforts, such as air conditioning or heating, as required
- enjoying restaurant meals or takeaway on occasion
- being able to participate in leisure activities such trips to the cinema or to maintain memberships to social or sporting clubs
- a domestic holiday, or a few short breaks annually, or an international trip every seven years
ASFA recently estimated that for a single person retiring at age 65, a comfortable retirement lifestyle is achievable with a total savings balance of $545,000, or $640,000 for a couple. This equates to a per annum spend of $46,494 for single people and $65,445 for couples.
Further research from non-profit consumer rights organization Choice has indicated even more conservative totals required than those suggested by ASFA. Choice discovered that most current middle-income earners will need less than ASFA’s projected figures to maintain the standard of living they currently enjoy. Similarly, the recent Household, Income and Labour Dynamics in Australia Survey (HILDA) indicated that some 88% of people who were recently retired reported feeling satisfied or neutral about the current state of their retirement finances.
According to the Australian Bureau of Statistics, the number one factor that influenced people’s decision on when to retire was financial security. So how do you ensure that you achieve that healthy superannuation and savings balance that will allow your retirement to be fulfilling, enjoyable, and a reward for a life of work well done, rather than a time of stress and worry? That’s where TriCare can help.
A financially savvy choice
Our Retirement Living options allow you the flexibility and support to create the kind of fulfilling lifestyle that will make your retirement years more than comfortable. By choosing the living option that is right for you, you can ensure that your basic needs – such as dining, home maintenance, and even housekeeping if you choose – are taken care of, allowing you to focus on enjoying the many activities and social functions on offer in our close-knit communities. By downsizing you also free up cash, cut down on maintenance costs, and give yourself back time for your own enjoyment. Our communities even maintain on-site restaurants and cafes, so that eating out and sharing a meal with friends isn’t one of the comforts that falls by the wayside in your retirement years.
For more information on how TriCare Retirement Living Communities can help you achieve the comfortable and fulfilling retirement you have been looking forward to, contact us here or book a tour of one of our nine retirement living communities today.