Retirees to feel rising costs sting
Single retirees are set to feel the pinch from an increasing cost of living as they will need to spend $767 more a year than this time last year to afford a comfortable retirement lifestyle.
Meanwhile couples will need to spend $1,131 more, according to the September quarter Retirement Standard issued by the Association of Superannuation Funds of Australia (ASFA).
This means singles will need to spend $42,597 a year for a comfortable retirement, up 0.4 per cent from the previous quarter, and will need a super balance of around $430,000, assuming they will receive at least part of the age pension.
Couples will need to spend $58,326 a year, and will need a joint super balance of $510,000, assuming they do not retire before they are eligible for the age pension.
ASFA CEO Pauline Vamos said when regular income stops, even small hikes in the cost of living can have a big impact, especially when essentials such as food and medicine are affected.
"It's also important that people think about creating or buying an income stream that will spread your superannuation savings across your retirement years and that can be adjusted to accommodate rising prices," she said.
Food and non-alcoholic beverages jumped 3.5 per cent in cost over the 12 months to the September quarter, with fruit going up 19.2 per cent, vegetables up 10 per cent, restaurant meals up 2.2 per cent and takeaway and fast foods up 1.9 per cent.
AUTHOR
Malavika Santhebennur
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