The Retiree

Whether you want to call it a day and start the next phase of your life or keep working until you’ve had enough, Wealth Fusion can help you plan for the future to ensure that your nest egg is protected and you can retire and live the dream.

Living in comfort on $41,000 for a Single Person or $56,000 for a couple a year

The lifestyle costs in this article reflect the cost adjustments as at September 2012.

Assuming you own your own home, you need the following amounts of money, after tax, to give a single person, or a couple, a basic, modest or comfortable lifestyle:

Basic lifestyle (Age Pension only — $20,088 a year for a single person, or $30,285 for a couple, including pension supplement, as at September 2012 and applicable until March 2013).

The single Age Pension now represents 27.7 per cent of Male Total Average Weekly Earnings. Are you willing to live on 27.7 per cent of an average Australian’s income? Living solely on the Age Pension gives you a basic income and access to discounts on health services and energy costs. While this figure is an amount you can survive on, many Australians don’t expect to live within this level of income by choice. (The full Age Pension rates are adjusted every six months, with next adjustment on 20 March 2013, and then 20 September 2013. The thresholds for a part Age Pension entitlement are adjusted 3 times a year – in March, July and September).

Modest lifestyle ($22,539 a year, or $32,511 for a couple).

Receiving an after-tax income that is slightly higher than the Age Pension obviously gives you a better lifestyle than living solely on social security, but you can only afford low-cost activities.

Comfortable lifestyle ($41,090 a year, or $56,236 for a couple).

Living on this level of after-tax income means you can enjoy more recreational activities. Also, you can afford to purchase private health insurance, higher quality household goods and travel regularly. Even so, a ‘comfortable’ lifestyle isn’t outlandish.

You cannot just rely on Employer Contributions to retire comfortably; you need to put a plan in place now to ensure you have choices for your future.

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