Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter
Cost of retirement continues to climb

Cost of retirement continues to climb

Miranda Brownlee
25 February 2016 — 1 minute read

The Association of Superannuation Funds of Australia (ASFA) retirement standard for the December quarter shows living costs for retirees have risen once again.

The ASFA retirement standard estimates that couples need to spend about $59,236 per year, while singles will need to spend $43,184.

Both categories increased from the previous quarter. The total budgets for older retirees increased by 0.5 per cent at both the comfortable and modest levels.

Advertisement
Advertisement

While there was a modest rise, ASFA CEO Pauline Vamos said the cost of living had not increased substantially, which is positive for current retirees.

"However, many Australians are still retiring with an inadequate amount of superannuation. In order to achieve a comfortable standard of living in retirement, an individual requires a minimum of around $545,000 and a couple around $645,000,” said Ms Vamos.

According to ASFA, the most significant price rises in the December quarter contributing to the increase in the annual budgets were domestic holiday travel and accommodation up 5.9 per cent, and international holiday travel and accommodation up 2.4 per cent.

The most significant offsetting price falls were automotive fuel down 5.7 per cent, fruit which was down 2.6 per cent and communications down 2.4 per cent.

Read more: 

Lawyer warns on dangers of digital signatures

DomaCom gets green light from property research firm 

Miranda Brownlee

Miranda Brownlee

 

Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.

Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates. Miranda has also directed SMSF Adviser's print publication for several years. 

Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.

You can email Miranda on: This email address is being protected from spambots. You need JavaScript enabled to view it.

Cost of retirement continues to climb
default
smsfadviser logo
join the discussion

What is the best solution to improve access to SMSF advice?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.