We recently came across an article by former Prime Minister, the Hon Paul Keating where he says that he originally designed the superannuation system for people from the ages of 55 to 75, but that’s changed:

“So, we have two groups in retirement – a 60 to 80 group and an 80 to 100 group. The 60 to 80 group is all about retirement living and lifestyle, which I think the current superannuation system adequately caters for. But the 80 to 100 (which is technically, the period of life beyond the previous life expectancy) is more about maintenance and disability and less about lifestyle.”

A chart from actuarial firm, Milliman, shows how people spend money in their later years. Note the health costs going up and the travel and leisure going down.
 

The message is that while 60 is indeed the new 40, make the most of it from 60 to 80 because 80 to 100 may not be as easy. And, of course, it helps if you have the money to pay for the travel and then the health.

Dr Martin Fahy updates the numbers on how much retirees need for a ‘modest’ or ‘comfortable’ lifestyle.

Lloyd Priddle

Lloyd has had a very successful career as an accountant, director and author for almost 40 years. Holding post-graduate qualifications in Business, Lloyd has specialised in Business Development, and worked with the Queensland Government and local councils on numerous occasions through association with AusIndustry and the SBAS Natural Disaster Assistance Program. He is also board member of a number of commercial and not-for-profit entities.