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Date Published : Thursday, April 03, 2008
The amount of money in savings accounts and superannuation funds stored away for happy retirement is now "probably too low" an amount, according to a new report.
According to the latest ASFA-Westpac retirement cost of living index, the average retiree needs $48,648 a year to live a comfortable lifestyle, up $2,000 on estimates made two years ago.
However, this is just an average - some people require more money each year, while some will require less. So how should consumers prepare their finances in order to have a happy, peaceful retirement?
The ASFA-Westpac definition of comfortable retirement lifestyle is one that allows an older healthy retiree to be involved in a broad range of leisure and recreational activities and to have a good standard of living through the purchase of such things as household goods, private health insurance, a reasonable car, good clothes, a range of electronic equipment and domestic and occasionally international holiday travel.
Recently, super funds have been returning large gains, with the S&P500 returning an average of 11.8 per cent per year. However, with the current uncertain financial climate means that many experts predict funds will not return figures anything like that this year.
As a result of the slowing super market, changes to the sector - allowing consumers to borrow money in order to maximise super returns - were orchestrated in the latter days of the Howard government.
The changes were introduced in February 2008 and are expected to see many more Australians invest in their retirements.
Compare savings accounts.
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