According to research by the Association of Superannuation Funds of Australia (ASFA), retirees are having to spend up to 0.8 per cent more of their savings to maintain a “comfortable” standard of living.
ASFA, the peak policy, research and advocacy body for Australia’s superannuation industry, found cost of living pressures were driving up expenditure.
June quarter 2019 figures indicate that couples aged around 65 who are living a comfortable retirement need to spend $61,522 per year and singles $43,601, up 0.8 per cent on the previous quarter. At the modest level, there was a 0.6 per cent increase for singles and a 0.5 per cent increase for couples.
The costs that increased substantially over the past 12 months include:
- bread up by 4.8 per cent
- beef up by 6.0 per cent and lamb up by 13.5
- milk up by 2.9 per cent
- fruit up by 4.9 per cent and vegetables up by 6.2 per cent
- beer up by 2.5 per cent
- property rates up by 2.3 per cent
- hairdressing up by 2.9 per cent
- private health insurance up by 3.25 per cent on average
- dental services up by 2.3 per cent
- domestic travel up by 3.5 per cent and price of international travel by 4.1 per cent.
According to ASFA, the most significant price increase in the June quarter was for automotive fuel (10.2 per cent). The rising cost of medical and hospital services (2.6 per cent) and international holiday, travel and accommodation (2.7 per cent) were also noted as posing significant cost increases for retirees.