What will your spending be like in retirement? How will it differ from today?

There are many ways to estimate a figure.

• Assume you can live on 65% of the after-tax income you received before retirement. Of course, this is just a guide and the actual figure may be 60% or 90%.
• Use other people's experiences as a guide.
• Look into research that has been conducted and compare it to your own circumstances. One of the recent surveys shows the level of income required by homeowner retirees. This research compiled a detailed budget (right down to how many times you might go to the movies or have a glass of wine!) to examine retirement income. It established a budget for a modest or more comfortable lifestyle.

• Review all your expenses and make an estimate of how they may change. This will depend very much on your lifestyle. You may save money because you are not commuting to work, do not need business attire, and have stopped making super contributions. But if you plan to travel extensively, play more golf, or start a new hobby or business you may spend more money. You may want to use the QSuper Budget planner again this time to estimate your spending in retirement.

1. Centrelink payment schedule, July 2009 for homeowners, including pension supplement.

2. Westpac and The Association of Super Funds of Australia (ASFA), March 2009. The annual income figures for singles are female research results.