The financial burden on retirees has continued to grow, with the cost of a comfortable retirement again climbing to record levels due to persistent rises in essential household expenses, according to the latest Association of Superannuation Funds of Australia (ASFA) figures.
In its most recent Retirement Standard figures for the June quarter, released today, ASFA reported the cost of a comfortable retirement for a couple has risen to $73,337, marking a 0.93 per cent lift from the previous quarter and a 3.57 per cent increase from the June quarter 2023.
The superannuation industry peak body estimated a retiree living alone will now need at least $52,085 to live comfortably, reflecting a 0.88 per cent increase from the last quarter and a 3.74 per cent rise over the past 12 months.
These increases have been largely driven by rising costs in key areas, including significant quarterly moves in home and contents insurance (3.1 per cent), private health insurance (3.03 per cent) and electricity (2.1 per cent).
ASFA chief executive Mary Delahunty emphasised the rise in living costs highlights the critical importance of planning for retirement and making additional contributions to superannuation.
“Retirees are managing an increasingly difficult landscape where the costs of essential goods and services keep rising. Health, home and transport are vital to their well-being, yet the expenses tied to these necessities are steadily increasing,” Delahunty said.
“For Australians to have the retirement they deserve, it’s crucial that they have access to adequate superannuation savings.”
The data also revealed prices for clothing and footwear rose by 3.1 per cent in the June quarter, while fuel prices increased by 1.7 per cent. Although domestic travel prices remained stable, international travel and accommodation expenses surged by 8.1 per cent.
While the annual food inflation rate eased slightly to 3.3 per cent in the June quarter, down from 3.8 per cent in March, retirees still face rising costs for essentials such as fruit and vegetables, which are 3.7 per cent higher than they were a year ago.
