On average, Australians are living longer – male life expectancy is 84 and female is 88 year old. So if you plan to retire at 65, your retirement savings need to last at least 20 years post-retirement.

The actual amount required in retirement will inevitably depend on the person and their lifestyle. It is often stated that you usually need at least 60% of your current annual income for retirement as a rough estimate. So if you're earning $60,000 now, you'll need at least $36,000 as your retirement income.

The Association of Superannuation Funds of Australia, together with Westpac found that a ‘modest’ retirement lifestyle requires $27,902 pa for a couple and $19,901 pa for a single. This allows for the very basics, eating out, social activities such as sport and entertaining at home is very restricted and overseas travel would not possible at this budget.

The ASFA-Westpac Retirement Standard considers a ‘comfortable’ lifestyle to include travel, private health insurance, personal computer, and greater clothing and entertainment budgets. A couple will require $51,437 pa and a single will require $38,403 to maintain the ‘comfortable’ lifestyle. 

Click here to check the current ASFA-Westpac Retirement Standard