Get ASX Price

Latest Financial Planning News
Articles archive
Quarter 1 January - March 2016
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Quarter 4 of 2014
We wish all our clients a Merry Christmas,a Happy New Year and a restful holiday
A great overview of investing and good Holiday reading.
The final nail in the coffin for LRBAs?
Market Update – November 2014
Online financial tools your family and friends can use.
Overcoming our behavioural barriers to saving
‘Unintended consequences’ threaten SMSF tax reform
Retirement income: every bit counts
ASFA continues to sound warnings on retirement savings
Market Update - October 2014
The little-known rule with huge implications for self-managed super funds
Grappling with the uncertainties of retirement
Change to ATO decision relevant to SMSF in-house assets
Taking a personal perspective on the global super challenge
Some terms defined - Super & Investment
The perils of market-timing and over-confidence
Market Update – 30th September 2014
Hardly a do-it-yourself job
Super insurance: wide coverage, limited understanding
ASIC eyes SMSF loan sign-off
Redesigning retirement incomes policy - from the ground up
ASFA continues to sound warnings on retirement savings


The Association of Superannuation Funds of Australia (ASFA) has released its latest Retirement Standard research, showing the rising cost of living continues ...

... to impact retirement savings prospects.



According to the September quarter Retirement Standard released by ASFA, to live a comfortable lifestyle in retirement single retirees will need to spend $767 more a year than this time last year, and couples will need to spend an additional $1,131.

Association chief executive Pauline Vamos said this rising cost of living shows just how important it is to save as much superannuation as possible.

“When you are no longer relying on a wage or salary, even small increases in the cost of living can hit hard, particularly when non-discretionary items such as food or medicines are affected.

“The best way to shield yourself against increasing costs is to save as much money as you can while you are working. This will give you the financial freedom to live the lifestyle you want in retirement,” she said.

According to ASFA’s recent report, couples wanting to live a 'comfortable' retirement will need to spend $58,326 per year, up 0.3 per cent on the previous quarter. This would require a joint superannuation balance of around $510,000 to achieve this.

Singles seeking a 'comfortable' retirement will now need to spend $42,597 a year, an increase of 0.4 per cent from the previous quarter, and require a super balance of around $430,000.
The report indicated prices rises for fruit, up 14.7 per cent, and property rates and charges, up 6.3 per cent, contributed heavily to the overall cost of living.

Meanwhile, analysis conducted by Towers Watson suggests Australians will need to combine lower spending strategies and the right investment options to ensure their income lasts for an increasingly likely period of 25 years in retirement.

Andrew Boal, managing director for Towers Watson in Australia, said lower levels of spending, particularly in the early years of retirement, must be implemented alongside an appropriate investment strategy to retain flexibility and reduce longevity risk.

“When considering investing for financial success in retirement, there are several factors that come into play, including how much superannuation a saver has available at the start of retirement, their spending plans, the amount of any other savings they have, as well as their risk tolerance and preferences,” he said.

“An individual’s spending strategy, however, is one of the biggest factors that will determine whether or not they will achieve financial success in retirement,” said Mr Boal.


Written by Staff Reporter Monday,
24 November 2014



Diamond Financial Solutions
Charter Financial Planning Limited ABN 35 002 976 294
Australian Financial Services Licensee Licence number 234665
Principal Address: 750 Collins Street PO Box 2830 Melbourne Victoria 3001
Legal Disclaimer
Charter Privacy Policy | Financial Services & Credit Guide
Site Map