Retirees taking on increasing cost of living
New figures from the Association of Superannuation Funds of Australia reveal that retirees are facing an increasing cost of living that exceeds that of the general population.
ASFA’s Retirement Standard December quarter 2019 figures revealed that couples aged around 65 need to spend $62,269 per year and singles $44,146, up by 0.8 of a percentage point for each on the previous quarter.
It said the changes are slightly more than the 0.7 of a percentage point increase in the All Groups Consumer Price Index (CPI).
Over the year, costs were up by around 2.1 per cent for couples compared to the 1.8 per cent increase in the All Groups CPI.
That equates at the comfortable level to couples needing to spend $1,292 more a year, and for singles the amount is $829, according to ASFA.
ASFA chief executive Dr Martin Fahy said cost increases for retirees have exceeded those for the general population.
“We’ve also seen an acceleration in the rate of increase in retirement expenses,” he said.
ASFA’s figures found that over the three-month period between the September and December 2019 quarters, there was a 6.8 per cent rise in fruit prices and a 2.9 per cent rise for beef and veal.
Further, drought conditions impacted on the prices for a range of other fresh produce including grapes, melons, onions, potatoes, eggs, rice and prawns.
“The drought has impacted on prices paid by retirees for food and there also have been other significant price increases,” Mr Fahy said.
“While the recent rains are very welcome, meat prices are likely to increase even further as farmers hold back their breeding stock from the market.”
Adrian Flores
Adrian Flores is the deputy editor of SMSF Adviser. Before that, he was the features editor for ifa (Independent Financial Adviser), InvestorDaily, Risk Adviser, Fintech Business and Adviser Innovation.
You can email Adrian at [email protected].
