The Association of Superannuation Funds of Australia (ASFA) says Australians need to boost their voluntary savings in order to achieve comfortable retirement and should find out what other options are available.
According to the ASFA Retirement Standard, retirees experienced a slight increase in the cost of living in the June quarter, with the couples aged around 65 needing to spend on average $59,160 more while singles were spending $43,062 extra to maintain comfortable retirement living standard.
For both groups these figures translated into a 0.4 per cent increase in the cost of living counting year-on-year while the budgets for older retirees, those aged 85 and over, increased by 0.1 per cent.
By ASFA’s standards, an individual required a minimum of around $545,000 and a couple around $645,000 to achieve comfortable retirement, however only less than 20 per cent of single people aged over 65 and only around 30 per cent of all couples were expected to be able to support a standard of living at or above the ASFA comfortable level.
ASFA interim chief executive, Jim Minto, said that maintaining the comfortable standard of living for at least 50 per cent of retirees by 2050, which was ASFA’s goal, was not possible on the basis of the current policy settings and individuals’ contributions.
“It will require individuals to make additional contributions and/or policy enhancements that boost contributions,” he said.
“We encourage people to get in touch with their superannuation fund to find out what options are available, so that they have the best chance of living their post-work years free from major financial worries.”
The most significant price rises in the June quarter included medical and hospital services (4.2 per cent) and automotive fuel (5.9 per cent).
However, these increases were partially offset by falls in domestic holiday travel and accommodation (-3.7 per cent), motor vehicles (-1.3 per cent) and telecommunication equipment and services (-1.5 per cent).
Also, the overall consumer price index (CPI) rose only by one per cent through the year to the June quarter, which was the weakest annual rise since the same quarter in 1999.
