Increasing food prices hit retirees’ hip pockets

retirement-income/retirement-costs/inflation/asfa-retirement-standard/Martin-Fahy/Association-of-Superannuation-Funds-of-Australia/

23 May 2019
| By Hannah Wootton |
image
image
expand image

Retirees have seen a slight increase in living costs over the last quarter, with the Association of Superannuation Funds of Australia (ASFA) Retirement Standard March quarter figures showing that costs were up 1.3 per cent for couples at both the comfortable and modest levels.

At the modest level there was no increase for singles and a 0.2 per cent rise for couples on the previous quarter, while budgets for older retirees specifically rose 0.3 and 0.4 per cent at the comfortable and modest levels respectively over that period.

While the overall rate of inflation was relatively low since the December quarter, some costs grew strongly. Medical and hospital expenses, for example, increased 1.3 per cent in the March quarter and 4.1 per cent over the last year, while the price of food and non-alcoholic drinks rose 2.3 per cent over the last year.

Food costs in particularly jumped in the March quarter, showing the impact of the continued drought, with the price of vegetables up 7.7 per cent for the quarter, poultry up 2.9 per cent, and bread and fruit both up 1.8 per cent.

Savings for the March quarter came from price falls for automotive fuel (down 8.7 per cent), and for both domestic and international holiday, travel and accommodation, which were down 3.8 and 2.1 per cent respectively.

Speaking on the slight changes, ASFA chief executive, Dr Martin Fahy, said: "While for many, the overall cost of retirement was largely unchanged over the most recent quarter, prices have been going up at a greater rate for a number of items.

“The relatively low rate of inflation has brought interest rates for bank deposits to historical low levels, placing pressures on the household budgets for retirees relying on income from term deposits and similar investments.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 4 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

5 months ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

2 weeks ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 5 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

3 weeks 3 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND