The cost of living for retirees decreased by 0.5 per cent in the September quarter in the first decline recorded this year, according to figures released by the Association of Superannuation Funds of Australia (ASFA) today.
The latest ASFA Retirement Standard indicated a couple aged 65 to 84 needed $73,031 annually to have a ‘comfortable lifestyle’, while for singles the figure was $51,814.
This equated to $690,000 in superannuation savings for a couple who retired at 67 and $595,000 for a single person of the same age.
The latest figures show a small decrease compared to the June quarter when retiree costs were estimated at $73,337 for a couple and $52,085 for singles.
The retiree budget fall was driven by factors such as lower automotive fuel prices and commonwealth and state government rebates aimed at lowering the cost of energy.
Retiree budgets have also fared better those of the general population in the past 12 months, increasing by 1.8 per cent compared with a lift in the consumer price index (CPI) of 2.8 per cent.
ASFA chief executive officer Mary Delahunty said: “The easing in short-term retirement budget pressures will be a welcome holiday gift for retirees at this time of year.
“It’s great in its twentieth year of providing Australians with the ASFA Retirement Standard it showed some relief for retirees after a couple of tough years of rising costs of living.”
However, she noted that over the two-decade history of the standard, the cost of a comfortable retirement has increased by 75 per cent, while household budgets almost doubled, compared to the 66.4 per cent CPI increase that has occurred in Australia since 2004.
“This shows Australians need to manage their retirement savings carefully and is why it’s clear Australians need better access to trusted, affordable financial advice to help them plan for their financial future. That’s why we welcome the financial advice reforms recently announced by the government,” she said.