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.
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.
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.