The benchmark for determining how much Australians need to live on in retirement has been updated, with the required incomes rising faster than inflation to record levels.
The Association of Superannuation Funds of Australia (ASFA) said Australian retirees may be planning a tighter Christmas as rising living costs pushed the price of a comfortable retirement to the highest level ever.
The ASFA Retirement Standard for people aged 65 wanting a comfortable lifestyle was an income of $76,505 a year for a couple and $54,240 for a single person if they owned their own homes.
ASFA said the budget rose 1.6% and 1.8% respectively in the September quarter and 3.5% and 3.6% over the year, outstripping the 1.3% and 3.2% increase in the consumer price index for the same periods.
“This underscores that retirees are experiencing stronger price pressures than the general population because they spend more of their budget on essential items that have risen the most,” the peak body said in a media release.
Cost increases in the September quarter included 1.3% for eating out and takeaways, 6.3% for rates, 9.0% for electricity prices, 5.2% for domestic holiday travel and accommodation and 9.3% for audio, visual, media and services.
ASFA CEO Mary Delahunty said these financial pressures highlighted the strengths of Australia’s superannuation system.
“Retirees might be feeling the squeeze this Christmas because prices have risen fastest in the things they spend most on, like food, energy and health,” she said.
“Fortunately for many retirees, it is the income they get from their superannuation savings that allows them to keep celebrating occasions like Christmas without having to worry about every dollar."
Super was an additional buffer for Australians on top of the state pension, which retirees in many countries relied on almost exclusively.
Average superannuation account balances have risen to a record $172,834 across almost 18 million account holders aged 15 and over, with those aged 65 to 69 holding $420,934 in retirement savings.
