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The Association of Super Funds Australia (ASFA) suggests that to achieve a modest retirement lifestyle, a couple would need $46,620 a year (based on 2023

The Association of Super Funds Australia (ASFA) suggests that to achieve a modest retirement lifestyle, a couple would need $46,620 a year (based on 2023 price) assuming that they own their home outright and are relatively healthy. The budget for a comfortable lifestyle amounts to $71,724 a year (based on 2023 price).[1] The current plan is for the couple to retire at the same time when David turns 63 and Beth turns 60 and they expect to have 25 years in retirement. Recall that David is 45 and Beth is 42.

1.1Assuming that the ASFA adjusts the retirement living cost according to an inflation rate of 2% per annum, how much do David and Beth need a year for them to achieve a modest retirement lifestyle when they retire? How much do they need a year for a comfortable lifestyle, according to the estimate from ASFA?

1.2If David and Beth aspire to have very comfortable retirement that allows them some luxuries such as overseas travel and fine dining, they want to budget for $80,000 at the beginning of each year during retirement, how much money do they need upfront when they retire to achieve that lifestyle?

Note: Include the following tables in your report and explain to the clients how these figures are calculated.

https://www.superannuation.asn.au/resources/retirement-standard/

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