Sydney retirement costs soar
Sydney people looking for a comfortable retirement are facing a tougher environment than they were 12 months ago, according to the latest Westpac/ Association of Superannuation Funds Australia Retirement Living Standard survey (WASFA).
According to the WASFA, the cost of achieving a comfortable retirement in Sydney has increased by $1000 since last year, largely as a result of essential items such as food, electrical and health costs going up in price.
The picture was a little less gloomy for retired couples living in Melbourne where costs went up by a comparatively modest $700 over the period.
According to the WASFA data, over the 12 months to December 2004 the cost of a comfortable retirement for a couple living in Sydney rose from $852.20 a week ($44,400 a year) to $868.40 a week ($45,280 a year).
This compares to Melbourne where the cost of comfortable retirement rose by $846.85 a week ($44,160 a year) to $860.80 a week ($44,890 a year).
The only piece of good news to emerge from the data was that the increase in costs experienced by Sydney retirees was around 1.9 per cent and this was less than for Sydney residents on average, who faced a cost increase of 2.6 per cent.
The data said the price of basic living items had tended to go up more than for discretionary and leisure items.
“For instance, home occupier housing costs increased by 3.9 per cent and electricity costs went up by 2.8 per cent with health servicing rising by a substantial 4.8 per cent,” it said.
ASFA pointed out that individuals and couples living in other capital cities had experienced similar increases in the cost of living in retirement, albeit that the level of those costs varied between regions.
AUTHOR
Michael Bailey
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