How much renters need for a comfortable retirement?
Sydneysiders planning to live in a comfortable retirement in a rented home will need to save more than $1 million in superannuation, according to a report.
The Association of Superannuation Funds of Australia’s Retirement Standard report for December shows that the cost of living for a single retiree in a one-bedroom unit in Sydney is about $62,434 a year.
For a retired couple in a rented two-bedder the annual cost of living is about $79,801.
The report said that compared to annual Sydney living costs of $43,300 for single retired homeowners and $59,600 for couples.
ASFA chief executive Martin Fahy says Sydney retirees planning to live a comfortable retirement in a rented home will need to save between $1.04 million and $1.16 million in superannuation.
That’s about double the required retirement savings of between $545,000 for homeowner singles and $640,000 for couples.
“Housing affordability and availability is a significant and increasing concern for many Australians and particularly impacts older Australians grappling with the private rental market,” Dr Fahy said in a statement.
“All estimates assume people are enjoying reasonable health, so any serious illness or disability makes the situation even more challenging, as does rental instability and associated costs.”
He warned that the current level of compulsory superannuation contributions at 9.5 per cent would fall well short of what was required to support a comfortable standard of living in retirement for anyone renting privately.
First appeared on Domain.com.au.