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.
Retirement Planning
Empowering your future: Financial literacy and retirement planning in Australia
In today’s complex financial landscape, achieving a secure and comfortable retirement requires more than just saving money. It demands a deep understanding of financial concepts and the ability to ...Read more
Retirement Planning
How much do you need to retire comfortably in Australia?
Retiring comfortably in Australia is a goal shared by many, but achieving this requires careful financial planning and a clear understanding of the cost of living. Read more
Retirement Planning
Retirement planning advice for Australians: Avoiding common pitfalls
Retirement planning is a critical step in securing your financial future, but it's fraught with potential pitfalls that can derail even the best-laid plans. Read more
Retirement Planning
Mastering financial planning for retirement in Australia
Financial planning for retirement is a nuanced journey that requires careful consideration and strategic planning, particularly in Australia's unique financial landscape. Read more
Retirement Planning
Crafting your retirement planning spreadsheet in Australia
Retirement planning is a crucial aspect of financial management, especially in Australia where the landscape of superannuation and investments offers unique opportunities and challenges. Read more
Retirement Planning
Maximising your pension plan in Australia: Strategies for a comfortable retirement
In the ever-evolving landscape of retirement planning in Australia, securing a comfortable retirement through your pension plan has become increasingly important. Read more
Retirement Planning
Supporting our veterans: A guide to financial resources and benefits
Military veterans have made invaluable contributions to their country, and in recognition of their service, there are numerous financial resources and benefits available to support them in civilian ...Read more
Retirement Planning
The ultimate retirement planning checklist for Australians
Retirement planning is a multifaceted process that demands careful attention to financial, legal, and personal considerations. Read more
Retirement Planning
Empowering your future: Financial literacy and retirement planning in Australia
In today’s complex financial landscape, achieving a secure and comfortable retirement requires more than just saving money. It demands a deep understanding of financial concepts and the ability to ...Read more
Retirement Planning
How much do you need to retire comfortably in Australia?
Retiring comfortably in Australia is a goal shared by many, but achieving this requires careful financial planning and a clear understanding of the cost of living. Read more
Retirement Planning
Retirement planning advice for Australians: Avoiding common pitfalls
Retirement planning is a critical step in securing your financial future, but it's fraught with potential pitfalls that can derail even the best-laid plans. Read more
Retirement Planning
Mastering financial planning for retirement in Australia
Financial planning for retirement is a nuanced journey that requires careful consideration and strategic planning, particularly in Australia's unique financial landscape. Read more
Retirement Planning
Crafting your retirement planning spreadsheet in Australia
Retirement planning is a crucial aspect of financial management, especially in Australia where the landscape of superannuation and investments offers unique opportunities and challenges. Read more
Retirement Planning
Maximising your pension plan in Australia: Strategies for a comfortable retirement
In the ever-evolving landscape of retirement planning in Australia, securing a comfortable retirement through your pension plan has become increasingly important. Read more
Retirement Planning
Supporting our veterans: A guide to financial resources and benefits
Military veterans have made invaluable contributions to their country, and in recognition of their service, there are numerous financial resources and benefits available to support them in civilian ...Read more
Retirement Planning
The ultimate retirement planning checklist for Australians
Retirement planning is a multifaceted process that demands careful attention to financial, legal, and personal considerations. Read more