How much will you need?

When you're planning for 30 years or more of your life, it's hard to imagine how much you will need to live on. Most Australians will need more than the Government's Age Pension to realise their retirement goals. Check out the table below to see how much you'd need at retirement to fund your lifestyle.

Just how long is a piece of string?

	Age you retire	To get $25,000 each year you'll need $	To get $35,000 each year you'll need $	To get $45,000 each year you'll need $
Women	55	584,600	818,440	1,052,280
	60	510,075	714,105	918,135
	65	434,400	608,160	781,920

Men	55	510,525	714,735	918,945
	60	436,025	610,435	787,845
	65	363,950	509,530	655,110

Source: BT Funds Management

Assumptions: The gross rate of investment return is 6.0% pa. Assumed management fee is 1.5%, giving an after-tax return of 4.5%. Inflation is 3.0% pa and all pension payments are indexed accordingly. There is no investment tax on the assets used to support the retirement income stream. Amounts are in today's dollars, i.e. have been adjusted for inflation. Based on life expectancies using Australian Life Tables 1995/97, the returns are illustrative only and are not indicative of any BT fund. A small change in any one of the assumptions can lead to a large change in the results. As you withdraw your capital over time, the dollar value of your income will reduce. Future performance of any fund is not guaranteed.

	Don't forget inflation The figures shown here take into account an expected increase in the cost of living due to inflation, measured using the Consumer Price Index (CPI). You need to ensure the value of your investments isn't eroded by inflation. Why you need financial advice.
	Retiring can save you $ It's not all bad news! Retiring can save you money as you won't have to pay for travel to work, lunches or work clothes. Your kids may be off your hands and you may have paid off your home. And Seniors Card discounts can really add up to significant savings on your daily expenses.

Put some figures to your lifestyle

Many financial planners suggest most people can live comfortably in retirement on 65% of their pre-retirement income.

Westpac Bank and the Association of Super Funds of Australia (ASFA) reported in December 2006 that an individual home-owner can live comfortably in retirement on around $35,731 a year, or $685.26 a week. A couple needs around $47,824 or $917.16 a week to enjoy the same lifestyle.

It is possible to live a modest lifestyle on around $18,409 a year ($313.05 a week) for singles and $25,892 ($496.57 a week) for couples. But living modestly as opposed to comfortably may mean forsaking overseas travel, top health insurance and making do with cheaper clothes, furniture, appliances and entertainment.

Read more about the Westpac/ASFA Retirement Living Standard Report, on the ASFA website.

Find out more about retirement

Find a financial adviser using BT's Adviser Referral Program.
Learn about BT's pension plans.