Many people face the challenge of saving enough money in super to make sure they’re able to lead the kind of lifestyle they want in retirement. How much income do you think you’ll need?

A recent study shows how much the average single person or couple needs each year to lead a modest or a comfortable lifestyle in retirement. A modest lifestyle is better than the age pension but still only provides for basic activities. A comfortable lifestyle allows for a broader range of leisure and recreational activities, purchase of household goods, private health insurance, a reasonable car, good clothes, a range of electronic equipment and domestic and occasional international holiday travel.

Figures at: September 2012: Westpac/ASFA Retirement Living Standard

Using the average life expectancies of males and females, the following table provides estimates of what you would need to save in order to achieve ASFA’s modest and comfortable lifestyles:

Assumptions: Assumes gross investment return of 6.6% p.a., inflation rate of 2.5% p.a., no tax on fund return and no eligibility for age pension top up. Source: AHC - Lifetime modeller 2012. 

You should use the above information as a general guide only. You should consult a licensed financial planner to discuss your specific needs.