What do you need in retirement?

According to one measure, a retired couple will need an income of $49,500 to live comfortably.   A retired couple will need an income of $26,850 for a modest lifestyle in retirement.

The figures are calculated using a retirement consumption model developed for the Westpac/ASFA retirement report.

Interestingly, a retired couple on full age pension will have an income of about $23,750 while two individual age pensioners who share expenses and accommodation but are not a couple will have a combined income of about $28,400.

The couple on full age pension will be on 88% of an income required for a modest lifestyle.  By comparison, the expense and accommodation sharing non-couple will be on about 106% of an income required for a modest lifestyle.