Higher inflation impacts retirees' standard of living
12 Nov 2008
Increased health and fuel costs are having a noticeable impact on the budgets of fixed income retirees, according to the Westpac ASFA Retirement Standard report for June 2008. A comfortable retirement is now costing a couple $50,086 a year, a rise of 1.2% in just 3 months, and 3.5% higher compared to a year earlier.
The study also shows that a single wishing to live comfortably in retirement will now need an annual sum of just over $37,000 (or $720 per week).
According to the research, retirees generally have different spending patterns to the rest of the population, with a large proportion of income spent on food, health, transportation and recreation. With most owning their own home, there is less of an impact from rising rental prices or mortgage interest rates.
While the overall increase in living costs revealed in the report was in line with the 1.3% rise in the All Groups Consumer Price Index (CPI) for the June quarter, transportation costs increased by 3.1% (largely due to fuel prices rising 8.7%), food prices decreased 0.1%, and health services increased 2.4%.
The Westpac ASFA Retirement Standard now recommends a weekly figure of just over $118.00 for the transportation costs of a couple enjoying a comfortable retirement lifestyle.
- For more information on the June 2008 Westpac ASFA Retirement Standard and help working out your retirement income needs, visit How much super is enough?
- For the full Westpac ASFA report for the June quarter, visit ASFA's website