Cost of living up for retirees
02/02/2011

The Westpac/ASFA Retirement Standard figures show that retirement costs rose during the September 2010 quarter.

The Westpac ASFA Retirement standard benchmarks the annual budget needed by Australians to fund a modest or comfortable standard of living in retirement. The figures, updated quarterly to reflect inflation, assume retirees own their own home and provide detailed weekly budgets of what singles and couples would need to fund their chosen lifestyle. These standards have been recently revamped to reflect changes in living standards along with evolving spending patterns and new expectations of retirees.

September figures reveal aggregate costs for a couple living comfortably in retirement have increased by 0.5% to $53,729 a year, while those seeking a modest retirement lifestyle need to spend $30,557 a year. Singles are also faced with increased costs with figures showing they need $39,302 a year to live comfortably and $21,132 to lead a modest lifestyle.

Despite yearly costs increasing as compared to the previous quarter some price falls were realised, partly due to the recent strength of the Australian dollar:

  • fuel down 3.7%
  • cost of vegetables down 5.4%
  • pharmaceuticals down 3.9%
  • audio,  visual and computing equipment down 2.7%.
     

    The most significant increases were to the following items and can be attributed to the typical annual increases in these expenses, taking effect in July:

  • water and sewerage rates up by 12.8%
  • electricity up by 6%
  • property rates and charges up by 6.2%.

     

    For the full Westpac ASFA Retirement Standard research report and state based figures and media releases visit the ASFA website.

    Check out the following Telstra Super tools and information to help plan a more comfortable lifestyle in retirement:
     
     How much super do you have? Log in to SuperOnline to check your balance and download a Super Summary.
     Estimate your retirement benefit based on your current salary and super savings and compare that to your desired retirement income using the Telstra Super Simulator.
     Plan your retirement - Find out how to maximise your retirement balance, how much super is enough, when to retire and how you may be able to ease into retirement with a Transition to Retirement strategy.
     For expert financial advice on your retirement planning strategy, tailored to suit your own circumstances, book an appointment with Telstra Super Financial Planning at no additional cost.