Retirees facing steep living increases
October 22, 2019
Many retirees are feeling the pinch as the cost of living keeps rising.
The Association of Super Funds Australia (ASFA) Retirement Standard benchmarks the annual budget needed by Australians to fund either a 'comfortable' or 'modest' lifestyle in retirement.
The June quarter 2019 figures indicate that couples aged around 65 living a comfortable retirement need to spend $61,522 per year and singles $43,601, up 1.5% for each on the previous year. This means couples are needing to spend $918 more a year, and singles $648.*
This increase, while it does not look large to some, hides some substantial increases in the cost of many basic items.
The drought has increased prices of a range of foods, petrol is up over 10% and the cost of private health insurance continues to grow at around twice the general rate of inflation.
The costs that increased substantially over the last 12 months are:*
- Price of bread up by 4.8%
- Price of beef up by 6.0% and lamb up by 13.5%
- Price of milk up by 2.9%
- Price of fruit up by 4.9%
- Price of vegetables up by 6.2%
- Price of beer up by 2.5%
- Property rates up by 2.3%
- Price of hairdressing up by 2.9%
- Price of private health insurance up by 3.25% on average
- Price of dental services up by 2.3%
- Price of domestic travel up by 3.5%
- Price of international travel by 4.1%
With these rising costs, it’s important your savings go the distance. If you would like to discuss your retirement savings speak to a Financial Advisor from TelstraSuper Financial Planning. Getting limited personal advice about your TelstraSuper account over phone is included in your membership so there is no additional cost. Call 1300 033 166 or request a call back online.
*https://www.superannuation.asn.au/media/media-releases/2019/media-release-8-august-2019