POWERED BY MOMENTUM MEDIA
Cost of retirement up in March quarter
The cost of retirement has increased during the March quarter with petrol, eating out and entertainment costs rising.
The Association of Superannuation Funds of Australia (ASFA) Retirement Standard March quarter 2021 figures indicated that couples aged around 65 living a comfortable retirement needed to spend $62,828 per year ($44,412 for singles) – up 0.4% on the previous quarter.
Retirement budgets were up 0.1% from the previous quarter, which reflected the different expenditure pattern in such budgets, as they were less likely to be affected by the increase in petrol prices which were up 8.7%.
Glen McCrea, ASFA deputy chief executive, said the March quarter saw a return to more normal conditions.
“In the previous few quarters there were suspensions or delays in certain price increases but now price increases are returning to a more standard pattern," McCrea said.
"There was around a 0.5% increase in the price of meals out and takeaway foods, in part due to demand pressures as more consumers were able to dine away from home.”
While health insurance premiums remained unchanged for much of the year, these increased from 1 October, 2020, by around 3% for many retirees.
There were now 2.2 million Australians aged over 65 with private health insurance, up from 2 million three years earlier.
Table 1: Budgets for various households and living standards for those aged around 65 (March quarter 2021, national)
|
Household type |
Single Modest |
Couple Modest |
Single Comfortable |
Couple Comfortable |
|
Housing – ongoing only |
$102.60 |
$115.29 |
$120.36 |
$125.70 |
|
Energy |
$32.81 |
$44.07 |
$41.57 |
$51.55 |
|
Food |
$94.68 |
$175.54 |
$122.42 |
$212.77 |
|
Clothing |
$20.49 |
$38.94 |
$27.37 |
$50.97 |
|
Household goods and services |
$34.39 |
$40.38 |
$76.80 |
$94.48 |
|
Health |
$51.45 |
$99.30 |
$105.37 |
$197.24 |
|
Transport |
$89.62 |
$95.73 |
$146.26 |
$158.68 |
|
Leisure |
$97.37 |
$152.82 |
$188.35 |
$283.16 |
|
Communications |
$17.85 |
$20.11 |
$22.33 |
$29.06 |
|
Total per week |
$541.27 |
$782.17 |
$850.81 |
$1,203.60 |
|
Total per year |
$28,254 |
$40,829 |
$44,412 |
$62,828 |
Table 2: Budgets for various households and living standards for those aged around 85 (March quarter 2021, national)
|
Household type |
Single Modest |
Couple Modest |
Single Comfortable |
Couple Comfortable |
|
Housing – ongoing only |
$102.60 |
$115.29 |
$120.36 |
$125.70 |
|
Energy |
$32.81 |
$44.07 |
$41.57 |
$51.55 |
|
Food |
$94.68 |
$175.54 |
$122.42 |
$212.77 |
|
Clothing |
$20.49 |
$38.94 |
$27.37 |
$50.97 |
|
Household goods and services |
$52.59 |
$75.37 |
$155.41 |
$186.12 |
|
Health |
$89.03 |
$124.51 |
$147.55 |
$232.86 |
|
Transport |
$40.38 |
$50.48 |
$45.43 |
$55.52 |
|
Leisure |
$63.50 |
$90.99 |
$131.19 |
$184.39 |
|
Communications |
$17.85 |
$20.11 |
$22.23 |
$29.06 |
|
Total per week |
$513.94 |
$735.29 |
$813.61 |
$1,128.94 |
|
Total per year |
$26,827 |
$38,382 |
$42,470 |
$58,930 |
Source: ASFA
Recommended for you
Speaking to Super Review, the $70 billion fund has unveiled its new solution to address the ‘cognitive load’ of retirement as members enter their golden years.
New research has suggested it’s time to reconsider the home as a fourth pillar of the retirement income system, alongside the age pension, superannuation, and voluntary private savings.
New research has revealed over 60 per cent of retirees believe their super fund offers retirement income products suitable to support their retirement lifestyle.
Some retirees are “needlessly” paying two sets of fees and often more tax than they need to, according to the industry body.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
90.28 3 y p.a(%)
2
GAM LSA Private Shares AU I
37.08 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.44 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.12 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
28.28 3 y p.a(%)
