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Retirement

Comfortable retirement requiring more money

  • February 19 2020
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Retirement

Comfortable retirement requiring more money

By Grace Ormsby
February 19 2020

The Association of Super Funds Australia (ASFA) has revealed retirees will now have to price in higher savings figures to assure themselves of a “comfortable” retirement.

Comfortable retirement requiring more money

Comfortable retirement requiring more money

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  • February 19 2020
  • Share

The Association of Super Funds Australia (ASFA) has revealed retirees will now have to price in higher savings figures to assure themselves of a “comfortable” retirement.

Comfortable retirement requiring more money

According to the advocacy group, couples aged around 65 now need to spend $62,269 per year to attain what ASFA classes as “comfortable”.

For singles, this figure is $44,146.

It means that over the year to December 2019, costs were up around 2.1 per cent for couples.

Over the quarter, it was an increase of 0.8 per cent.

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For a ‘comfortable’ level of retirement, it now means couples will need to spend $1,292 more per year.

For singles, they will now require an extra $829 per year for the same level.

According to ASFA CEO Dr Martin Fahy, “cost increases for retirees have exceeded those for the general population”.

This is compared with the slightly lower 1.8 per cent increase across all cohorts.

“We’ve also seen an acceleration in the rate of increase in retirement expenses,” he observed.

nestegg recently reported on the grocery price hike that has occurred over the past 12 months and what it means for retirees. 

ASFA’s retirement standard assumes retirees own their own homes.

As part of its modelling, ASFA has also noted home ownership costs as also increasing.

Home maintenance costs have increased by 2.7 per cent, water and sewerage charges have increased by 2.9 per cent and property rates are now 2.5 per cent higher, according to the report.

 

Comfortable retirement requiring more money
Comfortable retirement requiring more money
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About the author

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Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

About the author

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

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