POWERED BY MOMENTUM MEDIA
Costs of living for retirees highest in a decade
Australia has recorded the highest annual increase in retiree budgets since 2010 as costs of living pressures accelerate, says the Association of Superannuation Funds of Australia (ASFA).
The ASFA Retirement Standard September quarter 2021 figures showed couples aged around 65 living a comfortable retirement needed to spend $63,799 per year and singles $45,239, up by 0.9% and 1% respectively on the previous quarter.
The percentage increase in the budgets for those aged around 65 was higher than the increase in the September quarter All Groups CPI of 0.8%.
ASFA deputy chief executive, Glen McCrea, said: “Australian retirees are now facing significant pressure on their budgets, given a range of unavoidable price hikes including petrol and council rates”.
“It’s critical that future retirees are able to build sufficient retirement savings to ensure they can have dignity, health, vitality and connection in retirement.”
McCrea said moving Australia to the 12% superannuation guarantee (SG) setting was an important step towards ensuring future generations could be confident to meet the financial challenges of retirement.
Over the year to September 2021, prices were up by around 2.8% for the ASFA comfortable couple budget and by 3% for the ASFA comfortable single budget.
Recommended for you
Vanguard Super has reported strong returns across most of its investment options, attributed to a “low-cost, index-based approach”.
The fund has achieved double-digit returns amid market volatility, reinforcing the value of long-term investment strategies for its members.
Australian super funds notched a third consecutive year of strong returns, with the median balanced option delivering an estimated 10.1 per cent over the 2024-25 financial year, but an economist has warned that the rally may be harder to sustain as key risks gather pace.
AustralianSuper has reported a 9.52 per cent return for its Balanced super option for the 2024–25 financial year, as markets delivered another year of strong performance despite the complex investing environment.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom 465 Calder Road Calder
99.46 3 y p.a(%)
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
78.55 3 y p.a(%)
4
BetaShares Crypto Innovators ETF
50.39 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
47.50 3 y p.a(%)
