The latest Comfortable Retirement Standard from ASFA hit a record high in the March 2024 quarter to $72,663 per year for a couple and $51,630 per year for singles, rising 3.3 per cent over the past 12 months.
ASFA CEO Mary Delahunty said retirees continue to feel considerable cost-of-living pressures on their household budgets.
Since 2004, the ASFA Retirement Standard has included the cost of everyday expenses such as health, communication, clothing and household goods, and reflects community expectations as well as changing lifestyle expectations and spending habits.
“Ongoing inflationary pressure reinforces the need for Australia’s strong superannuation system which is designed to ensure retirees can achieve a dignified lifestyle in their post-work years, and adequate retirement income to withstand these more challenging times,” Delahunty said.
The largest quarterly and annual price changes were recorded in medical and hospital services which rose 2.3 per cent in the quarter, while insurance prices rose 3.7 per cent from the December quarter and 16.4 per cent annually.
This was the strongest annual rise since 2001. Higher reinsurance, natural disaster and claims costs continue to drive higher premiums for house, home contents and motor vehicle insurance.
According to the ASFA data, annual food costs rose by 3.8 per cent, down from 4.5 per cent in the December quarter. Bread and cereal prices rose by 7.3 per cent over the year, with prices for dairy products rising by 4.1 per cent over the year. Over the quarter, the price of fruit and vegetables was up 2.5 per cent, offset to an extent by a 0.7 per cent fall in meat and seafood.
Automotive fuel prices on average fell by 1.0 per cent in the March quarter, while electricity prices rose moderately at 2.0 per cent over the year.
Although the introduction of the Energy Bill Relief Fund rebates from July 2023 has driven down and moderated increases for eligible households, many self-funded retirees have not been eligible for these past rebates but will qualify for the rebates to be paid in forthcoming quarters that were announced in the budget. Excluding the Energy Bill Relief Fund rebates, prices increased by 17.0 per cent over this period.
