Assumptions

ASFA Assumptions

The figures provided are current as at the quarter ending 31 March 2016 and are based on the ASFA Retirement Standard. The ASFA Retirement Standard benchmarks the annual budget needed by Australians to fund either a comfortable or modest standard of living in the post-work years. It is updated annually to reflect inflation and provides detailed budgets of what singles and couples would need to spend to support their chosen lifestyle. http://www.superannuation.asn.au/resources/retirement-standard

The figures assume that the retiree(s) own their own home outright and are relatively healthy.

The difference between the comfortable and modest retirement lifestyle budgets mainly relates to the extra items included in the comfortable budget. These include items such as being able to update the kitchen or bathroom at some stage, some wine, eating out from time to time, being able to entertain family or friends at home, private health insurance at the top rate, purchasing magazines and CDs, an economy overseas holiday and being able to afford additional alcohol or purchase tobacco or make gifts.

Other Assumptions

• Life expectancy is based on The Australian Life Tables which are produced by the Australian Government Actuary.
• While ASFA updates their Modest and Comfortable living standard figures on a quarterly basis, in this calculator, figures are updated annually, with current figures from the "ASFA Retirement Standard March 2016". This calculator has rounded up all figures to the nearest dollar.
• "Single" calculations are based on female figures.
• The estimates are displayed in "today's dollars" – it's as if you had your retirement savings now and were starting your retirement income today. So, it can help you to work out whether your retirement savings are likely to be enough to give you a comfortable retirement.
• Assumes conservative investment returns in the retirement phase of 4.2% per annum and inflation of 2.5%