Overview
- It is the first increase to ASFA’s lump-sum benchmarks in three years, with the ‘modest’ targets now A$110,000 for singles and A$120,000 for couples.
- ASFA estimates the comfortable standard equates to annual budgets of A$54,840 for singles and A$77,375 for couples.
- Deeming rates for the Age Pension will rise on March 20, lifting the lower rate to 1.25% and the upper rate to 3.25%, a change ASFA warns can reduce entitlements for some retirees.
- Recent super performance offers some offset, with average balanced funds returning about 10.2% per year over the past three years and the superannuation guarantee now at 12%.
- ASFA’s projections assume retirement at 67 on A$65,000 pre-tax income and include age-based milestones such as A$66,500 at 30 and A$571,000 at 65 for those targeting the comfortable standard.