The latest Westpac-ASFA Retirement Living Standard released in February 2004, benchmarks the annual budget needed by Australians to pay for a comfortable and modest standard of living in the post-work years. It shows that:

to achieve a comfortable retirement lifestyle, a couple needs an annual income of $43,350 and a single person needs $32,800

to achieve a modest retirement lifestyle, a couple will need $23,550 each year and singles $16,930.

The items allowed for in the comfortable budget include:

• eating out from time to time
• mid-quality clothes from department stores (not discount chains)
• entertaining at home fortnightly
• private health insurance at the top rate
• a mid-range second hand car
• a few alcoholic drinks, including wine, per week
• being able to replace worn-out whitegoods with reasonable quality ones
• some kitchen or bathroom renovations, or alternatively house modifications to accommodate a mild disability.

Retire at 65, $43,350 / yr until 85, APRA approved investment yield 6.25%, inflation 3%, tax on allocated pension 15%.
How much invested capital do you need:

$771,568.71


Retire at 55, $43,350 / yr until 85, APRA approved investment yield 6.25%, inflation 3%, tax on allocated pension 15%.
How much invested capital do you need:

$1,010,762.94


$43,350 / yr might be comfortable but not budgetting hassle free.

Tip for allocated pensions / annuities: take out the minimum required payments at first and increase to the maximum allowed at 80.

Retire at 65, $43,350 / yr until 80, APRA approved investment yield 6.25%, inflation 3%, tax on allocated pension 15%.
How much invested capital do you need:

$621,046.68


Retire at 55, $43,350 / yr until 80, APRA approved investment yield 6.25%, inflation 3%, tax on allocated pension 15%.
How much invested capital do you need:

$900,435.65

But invested in what Megs!?!?!?!?!

Ah, now that IS the question, the rest is arithmetic.

Where will one passively get 6.25% yield net of all charges and losses and will inflation average 3% for a real yield of ~3.25% over 15 to 30 years?

I have no idea, but if you find out, let me know, OK?

Certainly. Send me a PM in 15 to 30 years and I'll let you know for sure.

I saw a figure today that said the average needed in a Super fund for a comfortable retirement was $400K +. It seems that the average fund for retirees is under $200k - seems there may be a pensions problem waiting to happen out here as well as the UK.

Steve

$400,000 would give you about $27,920 / yr - enough to keep you comfortably in your grave.

Investment's easy: just buy shares when they are low and sell them when they are high.

Friend of mine let me into this secret some years ago.

Just finished selling all my shares prior to moving: I don't need to pay CGT. there's a clue there!

Best not to buy when they are low and going lower.

To get a retirement 410 visa for australia you are required to have at least$260,000 capital and $45,000 per year income and have to prove this every time you re-apply for the visa.:scared:

Pleased to say that you do not have to re-prove your finances after the original 410 application - just sign a document stating that you have not needed any welfare benefits in the lifetime of the preceeding visa,


Peter