
Most read
‘Optimistic borrowers’ could endanger housing market, RBA says...
‘Optimistic borrowers’ could endanger housing market, RBA says...

Latest Podcast
Home values up 30% (or are they); NFTs taking the world by storm, and why Keatin...
Home values up 30% (or are they); NFTs taking the world by storm, and why Keatin...

Resources
There is $17.5 billion in lost and unclaimed super across ...
There is $17.5 billion in lost and unclaimed super across ...
Save
Where is your money going?
Age pensioners and self-funded retirees alike are being hit with a higher cost of living, but what’s driving it?

Where is your money going?
Age pensioners and self-funded retirees alike are being hit with a higher cost of living, but what’s driving it?

The selected living cost index for age pensioners grew by 2.2 per cent between the June quarter in 2017 and the June quarter this year, according to the latest figures from the Australian Bureau of Statistics (ABS). Self-funded retirees’ selected living costs index also grew by 2.1 per cent, reflecting an increase in the last quarter of 0.4 per cent.
These indices measure the amount by which after-tax incomes would have to change to allow households to buy the same quantity of goods and services that they bought in the base period.
Self-funded retirees
For self-funded retirees, rising health costs was the main driver behind the 0.4 per cent June quarter increase. Health costs were up 2.0 per cent over the June quarter 2018 thanks to an annual increase in private health insurance (PHI) premiums and a decrease in the PHI rebate.
Rising transport costs, up 1.5 per cent, also didn’t help. These were triggered by high world oil prices.
However, cheaper food and non-alcoholic drinks helped offset the increase to some extent, with a greater supply of seasonal varieties easing the pain.
Pensioners and beneficiaries
This group saw their living cost index grow 0.3 per cent over the June quarter. An increased cost in transport (2.4 per cent) was their main financial burden, although an increase in alcohol and tobacco prices also contributed (1.9 per cent).
Tobacco became more expensive after the federal excise tax increase on 1 March 2018.
Like their self-funded counterparts, cheaper food and drinks, down 0.7 per cent, helped take a bit of the pressure off.
Age pensioners
Their living expenses increased 0.2 per cent in the June quarter, with transport (2.2 per cent) and health (1.0 per cent) the main culprits.
Again, cheaper food and drinks were a saving grace.
Across all groups, housing costs decreased along with recreation and culture between the March and June 2018 quarters.
However, insurance costs increased, up 0.7 per cent for self-funded retirees and age pensioners and up 0.6 per cent for pensioners and beneficiaries.

Expenses
Half-price flight scheme launches today
Aussies are being offered half-price flights as the government looks to spur domestic travel to regions it has defined as key to economic recovery. ...Read more

Expenses
Insurance prices rise despite payout falls
The COVID-19 pandemic has seen insurer payouts fall by $500 million, but Australian consumers are continuing to pay more, the consumer watchdog has revealed. ...Read more

Expenses
CBA cops civil proceedings for overcharged interest
ASIC has commenced civil penalty proceedings in the Federal Court against the Commonwealth Bank over the bank charging an interest rate on business overdraft accounts that was substantially higher tha...Read more

Expenses
What are the top 10 most expensive cities in the world?
Logistical issues and currency fluctuations caused by the COVID-19 pandemic has seen the most expensive cities in the world drastically change, new research has revealed. ...Read more

Expenses
Sydney adviser pleads guilty to misappropriating $2.9m
A Sydney financial adviser has pleaded guilty to misappropriating $2.9 million in his clients’ funds. ...Read more

Expenses
Telstra set to refund 10,000 customers
Ten thousand past and present Telstra customers are entitled to a refund due to being overcharged a total of $2.5 million. ...Read more

Expenses
iSelect in hot water for energy plan comparisons
Comparison tool iSelect has been ordered to pay $8.5 million in penalties for making false and misleading representations about its electricity comparison service. ...Read more

Expenses
Pandemic puts stopper in big spending
Two-thirds of Australians have seen their finances impacted by COVID-19, according to new research – and it’s affecting everything from holidays to houses and careers. ...Read more

Home values up 30% (or are they); NFTs taking the world by storm, and why Keating thinks Aussies will be ‘poor’ in retirement
Listen now

Raging floods, the tech stock bubble and the ongoing SG debate
Listen now

Meet the Manager with Trilogy’s Philip Ryan: RBA rates and property price growth
Listen now

The continued property boom, ethical investing and engaging with your super fund
Listen now

Expenses
Half-price flight scheme launches today
Aussies are being offered half-price flights as the government looks to spur domestic travel to regions it has defined as key to economic recovery. ...Read more

Expenses
Insurance prices rise despite payout falls
The COVID-19 pandemic has seen insurer payouts fall by $500 million, but Australian consumers are continuing to pay more, the consumer watchdog has revealed. ...Read more

Expenses
CBA cops civil proceedings for overcharged interest
ASIC has commenced civil penalty proceedings in the Federal Court against the Commonwealth Bank over the bank charging an interest rate on business overdraft accounts that was substantially higher tha...Read more

Expenses
What are the top 10 most expensive cities in the world?
Logistical issues and currency fluctuations caused by the COVID-19 pandemic has seen the most expensive cities in the world drastically change, new research has revealed. ...Read more

Expenses
Sydney adviser pleads guilty to misappropriating $2.9m
A Sydney financial adviser has pleaded guilty to misappropriating $2.9 million in his clients’ funds. ...Read more

Expenses
Telstra set to refund 10,000 customers
Ten thousand past and present Telstra customers are entitled to a refund due to being overcharged a total of $2.5 million. ...Read more

Expenses
iSelect in hot water for energy plan comparisons
Comparison tool iSelect has been ordered to pay $8.5 million in penalties for making false and misleading representations about its electricity comparison service. ...Read more

Expenses
Pandemic puts stopper in big spending
Two-thirds of Australians have seen their finances impacted by COVID-19, according to new research – and it’s affecting everything from holidays to houses and careers. ...Read more