Cost of retirement rises again
The cost of a comfortable retirement in Australia has now increased to $48,648 a year, according to the latest Westpac/Association of Superannuation Funds of Australia Retirement Standard Research report released this week.
The survey found that during the September quarter 2007, living expenses for retired couples rose by 0.6 per cent, and that for couples seeking to maintain a ‘comfortable’ retirement lifestyle, the cost of living increased to $48,648 per annum.
In comparison, couples with ‘modest’ living requirements require a yearly budget of $26,339.
However, the research suggests that retirees are faring better than most in the community because of their generally lower spending on financial and insurance services, both of which experienced sharp price rises during the quarter.
The research suggests that the drought continued to play a major part in driving up the cost of living for retirees through higher food costs.
During the quarter, food prices rose by a total of 1.9 per cent, with the cost of seasonal produce such as fruit and vegetables growing significantly, recording increases of 9.6 per cent and 7.9 per cent respectively.
AUTHOR
Mike Taylor
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