Retiree balances don’t match rising costs

Single retirees and couples will need to save and contribute more to superannuation to avoid bearing the brunt of the rising cost of living, the Association of Superannuation Funds of Australia (ASFA) said.

Single retirees will need to spend $767 more a year than this time last year to afford a comfortable retirement lifestyle as prices of essentials like food and medicine go up.

Couples will need to spend $1,131 more to afford a comfortable retirement.

ASFA CEO Pauline Vamos urged people to create or buy an income stream that will stretch super savings through retirement, and can be adjusted to cope with rising costs.

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"When you are no longer relying on a wage or salary, even small increases in the cost of living can hit hard, particularly when non-discretionary items such as food or medicines are affected.

"The best way to shield yourself against increasing costs is to save as much money as you can while you are working," she said.

Singles will need to spend $42,597 a year for a comfortable retirement, up 0.4 per cent from the previous quarter, and will need a super balance of around $430,000, assuming they will receive at least part of the age pension.

Couples will need to spend $58,326 a year, and will need a joint super balance of $510,000, assuming they do not retire before they are eligible for the age pension.

Food and non-alcoholic beverages jumped 3.5 per cent in cost over the 12 months to the September quarter, with fruit going up 19.2 per cent, vegetables up 10 per cent, restaurant meals up 2.2 per cent and takeaway and fast foods up 1.9 per cent.