Cost of retirement continues to climb
The Association of Superannuation Funds of Australia (ASFA) retirement standard for the December quarter shows living costs for retirees have risen once again.
The ASFA retirement standard estimates that couples need to spend about $59,236 per year, while singles will need to spend $43,184.
Both categories increased from the previous quarter. The total budgets for older retirees increased by 0.5 per cent at both the comfortable and modest levels.
While there was a modest rise, ASFA CEO Pauline Vamos said the cost of living had not increased substantially, which is positive for current retirees.
"However, many Australians are still retiring with an inadequate amount of superannuation. In order to achieve a comfortable standard of living in retirement, an individual requires a minimum of around $545,000 and a couple around $645,000,” said Ms Vamos.
According to ASFA, the most significant price rises in the December quarter contributing to the increase in the annual budgets were domestic holiday travel and accommodation up 5.9 per cent, and international holiday travel and accommodation up 2.4 per cent.
The most significant offsetting price falls were automotive fuel down 5.7 per cent, fruit which was down 2.6 per cent and communications down 2.4 per cent.
Written by Miranda Brownlee
Thursday, 25 February 2016
SMSFadviser.com.au
Latest Newsletters
Hot Issues
- Aged care report goes to the heart of Australia’s tax debate
- Removed super no longer protected from creditors: court
- ATO investigating 16.5k SMSFs over valuation compliance
- The 2025 Financial Year Tax & Super Changes You Need to Know!
- Investment and economic outlook, March 2024
- The compounding benefits from reinvesting dividends
- Three things to consider when switching your super
- Oldest Buildings in the World.
- Illegal access nets $637 million
- Trustee decisions are at their own discretion: expert
- Regular reviews and safekeeping of documents vital: expert
- Latest stats back up research into SMSF longevity and returns: educator
- Investment and economic outlook, February 2024
- Planning financially for a career break
- Could your SMSF do with more diversification?
- Countries producing the most solar power by gigawatt hours
- Labor tweaks stage 3 tax cuts to make room for ‘middle Australia’
- Quarterly reporting regime means communication now paramount: expert
- Plan now to take advantage of 5-year carry forward rule: expert
- Why investors are firmly focused on interest rates
- Super literacy low for cash-strapped
- Four timeless principles for investing success
- Investment and economic outlook, January 2024
- Wheat Production by Country
- Time to start planning for stage 3 tax cuts: technical manager
- Millions of Australians lose by leaving savings in default MySuper funds
Article archive
- January - March 2024
- October - December 2023
- July - September 2023
- April - June 2023
- January - March 2023
- October - December 2022
- July - September 2022
- April - June 2022
- January - March 2022
- October - December 2021
- July - September 2021
- April - June 2021
- January - March 2021
- October - December 2020
- July - September 2020
- April - June 2020
- January - March 2020
- October - December 2019
- July - September 2019
- April - June 2019
- January - March 2019
- October - December 2018
- July - September 2018
- April - June 2018
- January - March 2018
- October - December 2017
- July - September 2017
- April - June 2017
- January - March 2017
- October - December 2016
- July - September 2016
- April - June 2016
- January - March 2016
- October - December 2015
- July - September 2015
- April - June 2015
January - March 2016 archive
- Possible tax benefits through early inheritance
- Market Update - 29th February 2016
- Mortgages, personal debt and retirement
- Cost of retirement continues to climb
- Personal finance goes 'viral'
- ATO warns on poor asset records causing SMSF breaches
- When is an unallocated contribution account a reserve?
- Market Update – 31st January 2016
- Australians still need better retirement planning
- What to expect from investment markets in 2016 and beyond
- ‘Irrational fear’ impacting SMSF longevity risk: CSIRO
- Tax scam reaps hundreds of thousands
- Morrison signals direction of super tax changes
- Market Update – 31st December 2015