The latest Association of Superannuation Funds of Australia’s (ASFA) Retirement Standard analysis has indicated the amount needed to achieve a comfortable retirement for a couple aged around 65 rose by 1.95 per cent over the June quarter and now sits at $75,319 a year.
The figures also showed the required annual amount for a single person to achieve a comfortable retirement is now $53,289, an increase of 1.72 per cent over the quarter, while the modest retirement level rose by 3.75 per cent to $49,992 for a couple and 3.4 per cent to $34,522 for an individual.
With regard to specific items, ASFA reported digital connectivity, or smartphones, streaming services and high-speed internet, is now accounting for an increasing amount of retirees’ expenditure.
The superannuation industry peak body updated the standard this quarter to include budgeting for smartphones and NBN plans. These services now cost couples $58 a week at the comfortable level and $45 at the modest level.
“The stereotype of the digitally challenged senior is outdated. Today’s retirees are as connected as anyone and this is reflected in their household budgets,” ASFA chief executive Mary Delahunty explained.
“The Retirement Standard now fully reflects that retirees expect the same quality of digital connectivity they enjoyed in their working lives.”
Further, Delahunty pointed out retirees saw price pressures above inflation on private health insurance, electricity and fresh food during the June quarter.
To this end, private health insurance rose 3.7 per cent, marking the biggest quarterly increase since 2018. Electricity prices climbed 8.1 per cent, after a prior 16.3 per cent surge, and fruit and vegetables increased by 4.3 per cent.
On a more positive note, fuel prices fell 3.4 per cent thanks to lower global oil costs.
Over the June quarter, the Consumer Price Index only rose by 0.7 per cent to be 2.1 per cent annually.
