| Home alone Single retirees can face particular challenges in financing their desired standard of living in retirement. Central to these challenges is the reality that the living costs of a retired single person are approximately 70 per cent compared to a retired couple, according to the Association of Superannuation Funds of Australia (ASFA). In other words, the living costs of single retirees are certainly not half of those of their married counterparts - far from it. The latest ASFA Retirement Standard report, released this month, reports that a "modest" lifestyle costs a single retiree $21,930 a year against $31,675 for a couple. (These figures are adjusted for the December quarter 2011 CPI.) And a single retiree would have to spend $40,407 for a so-called "comfortable" lifestyle whereas a couple would have to pay $55,249. (Of course, there could be endless debates about what constitutes a "comfortable" lifestyle.) A long-time single person who recognises that the gap between the living costs of singles and couples is not as wide as many perceive is arguably in a better position to save for retirement. However, individuals who unexpectedly become single, perhaps late in their working lives, following the breakdown of a relationship or death of a partner can find their retirement planning suddenly turned upside down. Obviously, prudent retirement planning makes much sense whether you are currently single or in a relationship. Taking into account your personal circumstances, perhaps the fundamental issue to consider when planning for retirement is whether your regular savings are enough to eventually produce a sufficient retirement income. This can lead on to other matters such as the appropriateness of your portfolio's asset allocation and your tolerance to investment risk.
By Robin Bowerman 1st March 2012
| ||||||||||||||||||||||||||||||
“The right amount of money
in the right hands
at the right time!”
in the right hands
at the right time!”
LATEST NEWS
