POWERED BY MOMENTUM MEDIA
High electricity bills create increased retirement costs
Higher electricity prices are mostly to blame for a slight increase in retirement costs, according to the Association of Superannuation Funds of Australia (ASFA) Retirement Standard in the June quarter.
The ASFA Retirement Standard estimated an increase of 1.1 per cent in retirement costs for all retirees over the year, almost equal to the growth of the All Groups Consumer Price Index of 1.2 per cent over the same period.
A couple looking to achieve a comfortable retirement would need to spend $55,213 a year, while those seeking a modest retirement lifestyle will need $31,760 a year, assuming they owned their own homes.
According to ASFA, the rise in retirement costs is mostly attributed to electricity prices which increased by a substantial 10.6 per cent over the year to 30 June 2012, but the rise in health costs - particularly health insurance - was of no help either.
Retirees, however, benefited from price falls or only modest increases across a range of important components of retirement budgets such as food and groceries.
"Along with generally owning their own home outright (so cost increases for housing are less important for retirees), they don't tend to spend much on education services," ASFA stated. "In contrast, food, health, transportation and recreation form a large part of retiree budgets."
ASFA noted it is not unusual for the effects of the various differences to largely cancel out over the long term.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
Superannuation funds have posted another year of strong returns, but this time, the gains weren’t powered solely by Silicon Valley.
Australia’s $4.1 trillion superannuation system is doing more than funding retirements – it’s quietly fuelling the nation’s productivity, lifting GDP, and adding thousands to workers’ pay packets, according to new analysis from the Association of Superannuation Funds of Australia (ASFA).
Large superannuation accounts may need to find funds outside their accounts or take the extreme step of selling non-liquid assets under the proposed $3 million super tax legislation, according to new analysis from ANU.
Economists have been left scrambling to recalibrate after the Reserve Bank wrong-footed markets on Tuesday, holding the cash rate steady despite widespread expectations of a cut.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom 465 Calder Road Calder
99.46 3 y p.a(%)
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
78.55 3 y p.a(%)
4
BetaShares Crypto Innovators ETF
50.39 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
47.50 3 y p.a(%)
