Is $60kPA really enough to retire comfortably?

The ASFA Retirement standard says a couple can comfortably live on $60063 PA. It seems financial advisers, writers, banks and super funds all agree.
Their definition of Comfortable is :- "A comfortable retirement lifestyle enables an older, healthy retiree to be involved in a broad range of leisure and recreational activities and to have a good standard of living through the purchase of such things as; household goods, private health insurance, a reasonable car, good clothes, a range of electronic equipment, and domestic and occasionally international holiday travel."
However as you delve into how they came up with the figure you see this:-

Home phone, broadband and mobile $28.52PW
Household appliances $12.00PW
Car & running costs $136.21 PW
Domestic vacations $77.85PW
International Vacations $55.48 PW
Cinema, plays, sport and day trips $13.62

These figures seem very much under what I spend, I would love to know the phone plan that gives me 2 mobiles, a home number and sufficient broadband for $28.52 per week

These days household appliances have about a 7 year life. If you have to replace fridge, freezer, dishwasher, washing machine, TV, stereo etc etc you will be up for more than $624PA ($12PW)

A reasonable car is considered to be a Toyota Corolla or similar. RACV say it will cost $160.17 per week.

In a comfortable retirement I would expect to be able to have at least 2 weeks domestic holiday per year. The budget they have given me is say $300 each way for airfare and $203 per day to include accommodation, food, car hire and sightseeing. Sounds a bit tight to me.

International vacations of $2885? I could not even do tassie.

My local cinema has $10 tickets which is great, but since I only have $13.62 per week, my wife would have to stay at home.

Many more examples could be mentioned, I am just glad my retirement budget is well over $60kPA.
Rant over.

 

At least $100k per year makes retirement relatively comfortable.

 

Probably based on the fact you buy everything new, it is fully maintained and lasts forever. Not a bad assumption... until you factor in that not everyone buys new and not everyone actually maintains their items

 

Just go every second week. That said, I would be lucky if one movie a month came out that I actually wanted to see.

 

It sounds pretty similar to the lifestyle my parents who are nearing 80 are living.

They tend to do an interstate (or intrastate holiday once a year) and overseas is about every 3 years. It's now getting harder and harder to insure them for holidays so the trip I'm taking them on in 3 weeks might well be their last big international adventure at 79.

That phone + internet + mobile is all they use. They are both on prepaid mobiles that they only sometimes remember to charge (sigh!)

They would go do something like a movie/music/play once every couple of months simply because there isn't something weekly that warrants spending money on. They have their foxtel which they love.

I think they are pretty happy with their lifestyle but I top it up for them.

They have lived a very different financial journey than me due to their ages and belief structure. I have chosen differently but I am probably also more fortunate to be born in a different era where self sufficient retiring will be the norm which promotes a very different mindset.

I agree that $60k might not be enough for some, but it's not a pittance either and people who have never had more and lived a simpler life will be more than happy on it. It is a lot more than the govt pension so I think a couple on $60k will be ok.

 

Depends on your lifestyle and what you're used to. If forced to retire and 60k was all their was, I'm sure we could all adapt.

Especially those on 6 figures, its harder to imagine going down lower. Work itself has a bit of expense attached for some people, eg child care, transport, parking, dry cleaning, lunches, etc

In retirement stage if the above costs are gone, then I assume there's an upfront cost of wanting to go and do all the new wonderful things in the world. Once you have the things you want or have done the things you planned, I imagine the ongoing money situation eases up a bit.

And its no surprise that the small subset of population who frequents these forums aims a little higher, too.

 

I could live on $10k a year if I didn't have kids!

 

Come on - just go ever 2nd week!

I have relatives retired on the full pension, they have 2 cars, still have a home loan and go overseas on a cruise every year. I think they must be living on half of this $60k

 

Is this possible?

We are paying approx. $130 per month just on mobiles, Telstra
Land line/internet - $125 per month. Optus

International vacations at 55.48 pw?? south east Asia?? Bali

 

My internet is $60 per month and this includes a home phone. mobile $40. = $100 per month which comes out to be about $25 per week

 

Same here, internet $70pm and payg phones with Internet about $20pm.. No wonder some people need $200k net pa to scrape by.

Films can be downloaded or 'rented' online $6-10 each or something. I agree the travel budget mentioned is rubbish but some may have a slush fund/ savings for this. If you don't have a mortgage and you have some savings to draw on for hols and emergencies then it seems fine.

 

Netflix is only $15 per month I think!

Over estimating the amount needed to 'retire' causes people to unncessarily waste their dwindling days continuing to work as a wage slave robbing them of life.

On the otherhand you don't want to come up short only to run out of money when you are 66, but the pension is there for a back up plan.

 

Come on $2885 for an os holiday sounds like fun! What a great challenge it would be - working holiday for sure. OK so maybe you go os every 3rd, 4th or 5th year - and stay as l I ng as you can.
You could easily do Tassie on that though. What do retirees have that we don't? Time. They can catch the train and ferry or drive down. Take some tea and bikkies and pumpkin soup in a thermos! When they get there, they go hiking and visiting galleries. Buy a couple of avos and a loaf of bread from woollies ...
And, go fishing with a fishing rod, a bag of worms, a few tinnies and some chips. I thought it was supposed to be relaxing due to the sense of self sufficiency it gives.

 

Is the mobiles for your kids as well? My parents are on $15/mth plans for mobile which is plenty. They probably could get rid of their home phone line but they haven't yet as they still use it alot whereas I don't. Their foxtel + home broadband + phone line is about $100 but as that includes foxtel which is a luxury item/treat and replaces a lot of entertainment $ for them.

 

I don't know if there's something wrong with me. I've been tracking our household spending over the last 6mnths or more. Food $600pm but lets round it up to $800. All household bills except investment property mortgages and other ip costs (so includes ppor utilities, car, fuel, drs/pharmacy, phone, internet) $1k pm but lets round up to $1500 for contingency. Entertainment is extra for larger costs like holidays. So adding a bit extra in for replacing household goods or larger repairs I'm struggling to spend $35k pa on the basics.

I spend about $8k pm on ip mortgages and about $3k pm on ip costs. All covered by the rent. So in retirement you could hold a portfolio like this and sell down one ip every year or two for luxury money. Not sure where I'm going wrong.

 

I can help you out spending if you need

 

I imagine you'd blow my budget in no time at all

 

hehe to be honest I'm a bonds t-shirt and $50 watch person myself, but the Mrs is another story...

 

Wow, supplier?
Does this include international calls using mobile

 

Im not all about budgeting and I can spend like anyone else. Seriously though I can live like a king on $60k a year with no mortgage, plenty of sunshine, friends, nice walks/cycles and places to visit.