Retirement
Retirees still suffering despite low inflation levels
A low inflation rate is not materially aiding retirees still struggling with their budgets, according to new research.
Retirees still suffering despite low inflation levels
A low inflation rate is not materially aiding retirees still struggling with their budgets, according to new research.
In the new report released by The Association of Superannuation Funds of Australia (ASFA), there’s been a “modest” increase in retiree expenses despite lagging inflation.
The 0.6 per cent increase for singles and 0.5 per cent increase for couples have been reported as equating to coupled-up retirees needing to spend $918 more a year, while singles are finding themselves spending an extra $648.
It means that in 2019, couples aged around 65 require $61,522 per year for a comfortable living, while singles now require $43,601.
Budgets for older retirees rose from the previous quarter by 0.7 per cent at a comfortable level and 0.5 per cent at the modest level.
ASFA’s CEO, Dr Martin Fahy, said the rise in CPI might not look like much, but it is putting significant strain on retirees.
“The drought has impacted on the prices of a range of food. The cost of private health insurance continues to grow at around twice the general rate of inflation, and petrol prices are up,” he explained.
The increased strain placed on retirees has meant that Dr Fahy welcomed the decision to lower the deeming rates, indicating that it will help to ease some of the pressures facing older Australians.
He said that “many retirees would have welcomed the recent decision to decrease the deeming rate in the asset test for the Age Pension. But at the same time, they have been facing increased costs of living and lower returns from investments, such as term deposits.”
The costs for retirees that have increased substantially over the last 12 months are:
- Price of bread up 4.8 per cent
- Price of beef up 6.0 per cent; lamb up 13.5 per cent
- Price of milk up 2.9 per cent
- Price of fruit up 4.9 per cent
- Price of vegetables up 6.2 per cent
- Price of beer up 2.5 per cent
- Property rates up 2.3 per cent
- Price of hairdressing up 2.9 per cent
- Price of private health insurance up 3.25 per cent on average
- Price of dental services up 2.3 per cent
- Price of domestic travel up 3.5 per cent and price of international travel 4.1 per cent
RELATED ARTICLES
About the author
About the author
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
