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How much do you need to spend to have a comfortable standard of living in retirement?

Research, first released February 2004, from the Association of Superannuation Funds of Australia (ASFA) provides a clear and objective answer to this question.

Most people save for their retirement, but relatively few have a good idea of exactly how much money needs to be spent per year to fund a comfortable lifestyle in retirement. The level of the age pension tells you what people can survive on, but most Australians want and need more than that.

The report - titled Westpac ASFA Retirement Standard - provides detailed budgets of what singles and couples would need to spend to be able to have either:

• A modest lifestyle in retirement - better than just surviving on the age pension but still only being able to afford fairly basic activities
• A more comfortable lifestyle in retirement - broad range of leisure and recreational activities and a good standard of living with the purchase of household goods, private health insurance, a reasonable car, good clothes, a range of electronic equipment, and domestic and occasionally international travel