subscribe to our newsletter sign up

Cost of retirement climbing for Aussies

Aussie investors are being encouraged to evaluate their retirement portfolios in line with fresh estimates, which again indicate the cost of retirement is on the up for Aussies.

The Association of Superannuation Funds of Australia (ASFA) retirement standard for the December quarter shows living costs for retirees have risen once again.

The ASFA retirement standard estimates that couples need to spend about $59,236 per year, while singles will need to spend $43,184.

Both categories increased from the previous quarter. The total budgets for older retirees increased by 0.5 per cent at both the comfortable and modest levels.

While there was a modest rise, ASFA CEO Pauline Vamos said the cost of living had not increased substantially, which is positive for current retirees.

"However, many Australians are still retiring with an inadequate amount of superannuation. In order to achieve a comfortable standard of living in retirement, an individual requires a minimum of around $545,000 and a couple around $645,000,” said Ms Vamos.

According to ASFA, the most significant price rises in the December quarter contributing to the increase in the annual budgets were domestic holiday travel and accommodation up 5.9 per cent, and international holiday travel and accommodation up 2.4 per cent.

The most significant offsetting price falls were automotive fuel down 5.7 per cent, fruit which was down 2.6 per cent and communications down 2.4 per cent.

Cost of retirement climbing for Aussies
nestegg logo
Promoted Content
Recommended by Spike Native Network
Jdub - And why, for God’s sake, introduce another obfuscating, bureaucracy-inspired name for a product for which there is already at least some.......
Dr Terry Dwyer, Dwye... - What rubbish! I resist them because they are misconceived and lazy policies, just as this "analysis" is lazy. A sensible policy would be to abolish.......
Elaine - The family home exclusion may create distortion, but I do believe it would be unfair to change it. For a start, how do you place a value on it?.......
Ian - If you want to talk about lazy options Labor will embark on re-distributing the income from the existing pie (or after a couple of years of Labor a.......