Retirement costs still heading north
The cost of achieving a comfortable retirement is continuing to increase despite Australia's relatively low inflation data, according to the latest research release by the Association of Superannuation Funds of Australia (ASFA).
The research, released last week, showed that a couple looking to achieve a 'comfortable' retirement would need to spend $55,213 a year, while those seeking a 'modest' retirement lifestyle would need $31,760 a year.
ASFA said these figures were up by one per cent and 1.1 per cent respectively on the June quarter 2011 figures, which indicated a couple needed to spend $54,954 a year for a comfortable retirement and $31,519 a year for a 'modest' retirement lifestyle.
It said that, by comparison, the increase in the All Groups Consumer Price Index (CPI) over the period was 1.2 per cent.
The data indicated that retirees had benefited from price falls or only modest price increases across a range of important components of retirement budgets, with food costs falling by 3.2 per cent while clothing and footwear costs increased by only 0.6 per cent and communication costs increased by 0.9 per cent.
This was somewhat offset by the fact that health costs rose by 1.5 per cent in the quarter and 3.6 per cent over the year.
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