Retiree costs tick up
Retirees faced a slightly increased cost of living in the June quarter - a result of cheaper domestic travel and petrol prices offsetting higher medical and hospital services as well as furniture price increases.
According to the Association of Superannuation Funds of Australia’s (ASFA’s) latest retirement standard, a couple needs $56,406 per annum to achieve a comfortable retirement and $32,656 for a modest retirement.
The increase in costs is less than the 0.4 per cent increase in the All Groups CPI, with a comfortable retirement increasing 0.2 per cent and a modest retirement 0.1 per cent over the June quarter.
Domestic holiday travel and accommodation decreased 0.4 per cent and petrol 3.1 per cent. These savings were offset by an increase of 4.8 per cent for furniture and 3.4 per cent for medical and hospital services, spurred on by increases in private health fund premiums since 1 April.
Unfavourable growing conditions increased the price of vegetables 3.3 per cent; however fruit prices fell 3.4 per cent, leading to a modest 0.1 per cent increase in food prices overall.
ASFA chief executive Pauline Vamos said policy makers needed to know the effects of rising costs, although over the long term differences would even out.
“It’s important policy makers take this into account when considering how to address cost-of-living issues for this group,” Vamos said.
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