POWERED BY MOMENTUM MEDIA
Food, transport push up cost of comfortable retirement
New figures show a couple looking to have a comfortable retirement will need $53,879 a year, up 0.3 per cent over the December quarter.
The Association of Superannuation Funds of Australia (ASFA) Retirement Standard also found couples wanting a modest retirement will need to spend $30,708, up $150 on the previous quarter.
The rising costs included food, alcohol, tobacco, transportation and domestic holidays — of which, food, transport and recreation spending form a large part of retiree budgets.
Retirees had to face a 2.2 per cent increase in the cost of food over the last quarter, but fortunately price rises over the year were a modest 2.5 per cent.
Meanwhile, the cost of health services, clothing, home and audio visual equipment, as well as computing equipment decreased over the quarter, which helped to even out overall rising costs.
ASFA measures a comfortable retirement as enabling retirees to be involved in a broad range of leisure activities and to be able to afford private health insurance, a reasonable car, good clothes, and domestic and occasionally international holiday travel.
A modest retirement is measured as being better than the age pension but still only allowing retirees to afford fairly basic activities.
AUTHOR
Ashleigh McIntyre
Recommended for you
The industry body has cautioned the government against implementing unnecessary regulations for private market investments, with ASIC currently exploring reforms in this space.
The industry fund has appointed Natalie Alford as its new chief risk officer, strengthening its executive team during a period of transformation.
The Super Members Council has outlined a bold reform plan to boost productivity, lift retirement savings, and unlock super’s full potential.
Women beginning their careers in 2025 could retire with hundreds of thousands of dollars more in super due to the 12 per cent super guarantee rate, HESTA modelling shows.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
88.01 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
72.60 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
44.46 3 y p.a(%)
4
Pengana High Conviction Equities B
39.12 3 y p.a(%)
5
Pengana High Conviction Equities A
39.05 3 y p.a(%)
