POWERED BY MOMENTUM MEDIA
ASFA weighs up costs of older retirees
Retirees in their 90s might spend less on average compared to younger retirees but their medical and aged care expenses increase significantly, the Association of Superannuation Funds of Australia (ASFA) retirement standard for older retirees shows.
The retirement standard showed that while people in their 90s spend less on holidays and other recreational activities, their expenditure on assistance in the home, including cleaning services and meals, and towards home and community care services jumps during this time.
ASFA CEO Pauline Vamos said older retirees will need both their super and government support to meet their spending needs.
"This will pose challenges for governments as they seek to put in place policies that provide financial support to this group, while working within the fiscal challenges that will arise as a result of the pool of retirees growing and the number of working Australians declining," she said.
She also said the standard was released to give financial advisers and individuals an idea of how their spending patterns change over time and how they should save for this.
"The ASFA Retirement Standard for Older Retirees will give governments a better picture of the spending magnitude and behaviour of older retirees.
"This will allow them to better analyse the impact that policy changes or price fluctuations in particular areas will have on this cohort of people and make better decisions accordingly," she said.
Retirees in their 90s also spend more on big medical procedures and regular chemist and other medical costs.
Recommended for you
Super funds had a “tremendous month” in November, according to new data.
Australia faces a decade of deficits, with the sum of deficits over the next four years expected to overshoot forecasts by $21.8 billion.
APRA has raised an alarm about gaps in how superannuation trustees are managing the risks associated with unlisted assets, after releasing the findings of its latest review.
Compared to how funds were allocated to March this year, industry super funds have slightly decreased their allocation to infrastructure in the six months to September – dropping from 11 per cent to 10.6 per cent, according to the latest APRA data.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.73 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
30.15 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.71 3 y p.a(%)
