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Comfortable retirement costs increase

Business

A couple would need an income of $62,000 a year for a comfortable retirement, according to the superannuation industry.

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According to the Association of Superannuation Funds of Australia a single person would need about $44,224 for a comfortable retirement, both were up by 0.9 per cent on the previous quarter.

The ASFA report followed a study from AMP which showed that about 50 per cent of Australian workers had no plans in place to achieve their retirement goals and most workers felt in the dark about how much income they would have or need in retirement.

AMP said it was women who are most anxious about their retirement.

ASFA said older retirees were continuing to experience financial pressures, with retirement budgets for those aged around 85 up by around 0.9 per cent from the previous quarter for couples and by around 1 per cent for singles.

“COVID-19 impacted on just about every aspect of Australia’s financial and economic conditions. Now, price increases are returning to a more standard pattern following a few quarters of suspension or delay in key costs, such as health insurance premiums,” said ASFA deputy chief executive Glen McCrea.

Retirees continue to spend on health insurance, which increased by about 3 per cent for many retirees in October. ASFA said there were now 2.2 million Australians aged over 65 with private health insurance, up from 2  million three years ago.

“As a greater number of people ventured out of their homes in search of a meal out or a domestic holiday, we saw price rises in those areas, which is not altogether favourable for retirees on a budget.”

During the quarter there was a 6.3 per cent increase in the price of domestic holiday travel and accommodation.

There was a 1.1 per cent increase in the price of meals out and takeaway foods, in part due to more consumers being able to dine at restaurants.

 

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