Policy needs to adapt to longer retirement

The Intergenerational Report has once again stressed the need for Australians to use tools to plan for their retirement as they live longer in retirement, the Association of Superannuation Funds of Australia (ASFA) said.

ASFA CEO Pauline Vamos said the Government and policymakers need to understand how retirees spend so they can adapt policies to suit this group of people.

"Government finances will continue to be under pressure over the coming decades, and the best way to protect yourself against future policy changes is to start saving now for the retirement you want," she said.

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The rising cost of living took a break in the December quarter, with falling petrol prices offsetting small price rises in other categories, ASFA's retirement standard showed.

Petrol prices fell by 8 per cent in the December quarter, while food prices rose by only 0.1 per cent.

Older couples aged around 65 seeking a comfortable retirement will need to spend $58,364 a year, up 0.1 per cent on the previous quarter. This will mean they need a joint super balance of around $510,000.

Older singles wanting a comfortable retirement will need to spend $42,604 a year, requiring a balance of around $430,000.

Older couples aged around 85 looking for a comfortable retirement will need $53,194 a year, while single retirees will need $37,944 a year.

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