Costs of living for retirees highest in a decade

Australia has recorded the highest annual increase in retiree budgets since 2010 as costs of living pressures accelerate, says the Association of Superannuation Funds of Australia (ASFA).

The ASFA Retirement Standard September quarter 2021 figures showed couples aged around 65 living a comfortable retirement needed to spend $63,799 per year and singles $45,239, up by 0.9% and 1% respectively on the previous quarter.

The percentage increase in the budgets for those aged around 65 was higher than the increase in the September quarter All Groups CPI of 0.8%.

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ASFA deputy chief executive, Glen McCrea, said: “Australian retirees are now facing significant pressure on their budgets, given a range of unavoidable price hikes including petrol and council rates”.

“It’s critical that future retirees are able to build sufficient retirement savings to ensure they can have dignity, health, vitality and connection in retirement.”

McCrea said moving Australia to the 12% superannuation guarantee (SG) setting was an important step towards ensuring future generations could be confident to meet the financial challenges of retirement.

Over the year to September 2021, prices were up by around 2.8% for the ASFA comfortable couple budget and by 3% for the ASFA comfortable single budget.

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