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Retirees' cost of living down this quarter
The cost of living for a retired couple who live ‘comfortably’ is down 0.2 per cent on June figures, according to new figures from the Westpac ASFA (Association of Superannuation Funds of Australia) Retirement Standard.
The 0.2 per cent decrease compares to an overall 0.6 per cent increase in the consumer price index (CPI), which was inflated by the increased tobacco excise, but Retirement Standard budgets don’t incorporate a tobacco allowance, according to ASFA.
Other factors were a large drop in recreation costs due to decreases in domestic and overseas holiday travel and accommodation costs. Audiovisual and computing equipment costs were also down. This year has also seen a slight drop in the costs of fruit and vegetables due to easing of the drought.
The cost of health services rose due to an increase in insurance premiums and transport costs were also up slightly due to rising petrol prices.
Because retirees tend to own their own homes they are less affected by housing costs and also spend less on education services.
Overall a couple looking to achieve a comfortable retirement needs to spend $53,456 a year, while those seeking a ‘modest’ retirement lifestyle need to spend $30,382 a year, ASFA stated.
For the purposes of the study, a comfortable lifestyle included a broad range of leisure and recreational activities and travel, while a modest lifestyle included only fairly basic activities, according to ASFA.
AUTHOR
Mike Taylor
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