Powered by MOMENTUM MEDIA
moneymanagement logo
 
 

Retirement costs rise in September

retirement/retirement-costs/finances/ttr/

5 December 2016
| By Jassmyn |
image
image image
expand image

Couples and singles aged around 65 living a comfortable retirement need to spend 0.8 per cent more in the September quarter, according to the Association of Superannuation Funds of Australia (ASFA).

This was on the back of price increases for fruit and vegetables, electricity, property rates and charges, as couples needed to spend $59,619 per year, and singles $43,372.

ASFA said retirees aged 85 and over increased by 0.9 per cent, and over the 12 months to the September quarter, the budgets at a comfortable level rose by 1.2 per cent, compared to 1.3 per cent in overall consumer price index (CPI).

ASFA chief executive, Dr Martin Fahy said annual growth in the overall CPI remained low but retirees faced a number of cost increases in the September quarter.

"The increase in cost of living in retirement highlights the need for saving an adequate amount for retirement," Fahy said.

"In order to achieve a comfortable standard of living in retirement, an individual requires a minimum of around $545,000 and a couple around $640,000.

ASFA said currently less than 20 per cent of single people aged more than 65 and 30 per cent of all couples were able to support a standard of living at or above the ASFA comfortable level.

Fahy said the percentages would lift to 50 per cent or more of retirees if the rate of compulsory contributions were raised to 12 per cent and individuals made voluntary contributions.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

The succession dilemma is more than just a matter of commitments.This isn’t simply about younger vs. older advisers. It’...

1 day ago

Significant ethical issues there. If a relationship is in the process of breaking down then both parties are likely to b...

3 weeks 4 days ago

It's not licensees not putting them on, it's small businesses (that are licensed) that cannot afford to put them on. The...

1 month ago

After last month’s surprise hold, the Reserve Bank of Australia has announced its latest interest rate decision....

3 weeks 6 days ago

ASIC has released the results of the latest adviser exam, with August’s pass mark improving on the sitting from a year ago. ...

3 days 18 hours ago

While the profession continues to see consolidation at the top, Adviser Ratings has compared the business models of Insignia and Entireti and how they are shaping the pro...

1 week 5 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND