While we're discussing SMSF’s, pensions and whatnot, I thought you might be interested in the following media release issued by the Association of Superannuation Funds of Australia (ASFA) in relation to the rising costs of having a reasonable retirement.

Australian retirees will need to spend slightly more than this time last year to fund a 'comfortable' or 'modest' standard of living, according to ASFA. A couple looking to achieve a 'comfortable' retirement will need to spend $56,339 a year, while those seeking a 'modest' retirement lifestyle will need $32,555 a year.

These figures are up by 2.0% and 2.8% on the December quarter 2011 figures of $55,249 and $31,675 a year. 'Modest lifestyle in retirement' refers to- Better than the Age Pension, but still only able to afford fairly basic activities. 'Comfortable retirement lifestyle' refers to-Enabling an older, healthy retiree to be involved in a broad range of leisure and recreational activities and to have a good standard of living through the purchase of such things as household goods, private health insurance, a reasonable car, good clothes, a range of electronic equipment, and domestic, and occasionally international, holiday travel. The figures in each case assume that the retiree(s) own their own home.

As many banks' term deposit rates are now down as low as 4.25%, a taxpayer would need to have about $1.3 million invested to be able to achieve a 'comfortable retirement lifestyle'.

Media release by the Association of Supperannuation Funds of Australia (ASFA)