Retirement
Good news for retirees on living costs
A substantial fall in petrol prices has seen the cost of living decline for retirees in the March quarter this year, in spite of persistent increases in previous quarters.
Good news for retirees on living costs
A substantial fall in petrol prices has seen the cost of living decline for retirees in the March quarter this year, in spite of persistent increases in previous quarters.
The Association of Superannuation Funds of Australia (ASFA) Retirement Standard for the March quarter indicated the cost of a comfortable retirement for a couple aged around 65 is now $58,922 per year, a 0.5 per cent drop from the previous quarter.
The cost of living also fell for singles, with the March figures showing a comfortable retirement for a single aged around 65 is now $42,893 per year, down 0.7 per cent from the previous figure.
ASFA chief executive Pauline Vamos said the small decline in the cost of living is welcome news for retirees, but many people still find it difficult to achieve a comfortable standard of living.
According to ASFA, to achieve a comfortable standard of living in retirement, an individual requires a minimum balance of around $545,000 and a couple around $645,000.
"Currently, less than 20 per cent of single people and 30 per cent of couples [aged over 65] are able to reach this standard of living," said Ms Vamos.
"Unfortunately, saving an adequate amount for retirement is anticipated to get harder, with a low interest rate environment and an ageing population, which will place more strain on governments as they seek to fund the increasing costs of health and aged care."
For the March quarter, the most significant price drops were automotive fuel, down 10 per cent, fruit, down 11 per cent and holiday travel down 2 per cent.
The cost of medical and hospital services on the other hand rose 1.6 per cent, along with pharmaceutical products which increased 4.8 per cent.
Ms Vamos said in the lead-up to the end of the financial year, ASFA is advising consumers to start thinking about what additional contributions they can make to boost their superannuation.
"The earlier you engage with and contribute to your superannuation, the easier it will be to reach a comfortable lifestyle in your post-work years as you will get greater benefits from compound interest," she said.
RELATED ARTICLES
Retirement Planning
New digital platform revolutionises retirement planning for Aware Super members
A groundbreaking digital platform by Aware Super is transforming the way retirees plan and manage their pensions, with significant results already seen in the pilot phase. The tool, named Retirement ...Read more
Retirement Planning
The retirement mortgage squeeze: how one bank turned a demographic risk into a strategic edge
An increasing share of Australians are entering their 60s still paying off mortgages, just as living costs and interest charges stay stubbornly high. For banks, super funds, retailers and ...Read more
Retirement Planning
The retirement mortgage crunch: what it means for banks, retailers and policy in Australia
A growing share of Australians are carrying mortgages into their 60s and beyond, colliding with persistent cost-of-living pressures and a “slow grind” macro outlook. This isn’t just a social story; it ...Read more
Retirement Planning
Majority of Australians still unsure about their retirement prospects
A recent survey conducted by MFS Investment Management® has shed light on the ongoing uncertainty faced by many Australians regarding their retirement plans. Despite a slight increase in confidence ...Read more
Retirement Planning
Wage growth steadies as businesses navigate economic challenges
In a sign that the Australian labour market may be finding equilibrium, wage growth has stabilised this quarter, according to Employment Hero's latest data. This development comes as employers ...Read more
Retirement Planning
Simplified retirement advice: Key to overcoming behavioural biases, experts say
In a bid to enhance retirement outcomes for Australians, a recent whitepaper by Industry Fund Services, in collaboration with Challenger, has highlighted the importance of simplifying retirement ...Read more
Retirement Planning
Rest launches Retire Ready digital experience to empower members approaching retirement
Rest, one of Australia’s largest profit-to-member superannuation funds, has unveiled a new digital experience aimed at making retirement preparation simpler and more personalised for its members. Read more
Retirement Planning
New Framework Aims to Bridge Australia’s Financial Advice Gap
A ground-breaking framework introduced by the Actuaries Institute promises to revolutionise how Australians access financial support, potentially transforming the financial wellbeing of millionsRead more
Retirement Planning
New digital platform revolutionises retirement planning for Aware Super members
A groundbreaking digital platform by Aware Super is transforming the way retirees plan and manage their pensions, with significant results already seen in the pilot phase. The tool, named Retirement ...Read more
Retirement Planning
The retirement mortgage squeeze: how one bank turned a demographic risk into a strategic edge
An increasing share of Australians are entering their 60s still paying off mortgages, just as living costs and interest charges stay stubbornly high. For banks, super funds, retailers and ...Read more
Retirement Planning
The retirement mortgage crunch: what it means for banks, retailers and policy in Australia
A growing share of Australians are carrying mortgages into their 60s and beyond, colliding with persistent cost-of-living pressures and a “slow grind” macro outlook. This isn’t just a social story; it ...Read more
Retirement Planning
Majority of Australians still unsure about their retirement prospects
A recent survey conducted by MFS Investment Management® has shed light on the ongoing uncertainty faced by many Australians regarding their retirement plans. Despite a slight increase in confidence ...Read more
Retirement Planning
Wage growth steadies as businesses navigate economic challenges
In a sign that the Australian labour market may be finding equilibrium, wage growth has stabilised this quarter, according to Employment Hero's latest data. This development comes as employers ...Read more
Retirement Planning
Simplified retirement advice: Key to overcoming behavioural biases, experts say
In a bid to enhance retirement outcomes for Australians, a recent whitepaper by Industry Fund Services, in collaboration with Challenger, has highlighted the importance of simplifying retirement ...Read more
Retirement Planning
Rest launches Retire Ready digital experience to empower members approaching retirement
Rest, one of Australia’s largest profit-to-member superannuation funds, has unveiled a new digital experience aimed at making retirement preparation simpler and more personalised for its members. Read more
Retirement Planning
New Framework Aims to Bridge Australia’s Financial Advice Gap
A ground-breaking framework introduced by the Actuaries Institute promises to revolutionise how Australians access financial support, potentially transforming the financial wellbeing of millionsRead more
