Australian couples aged 65 to 84 need A$75,319 per year to achieve a comfortable retirement, with single people needing $53,289, according to the Association of Superannuation Funds of Australia (ASFA).
ASFA said digital ‘essentials’ like smartphones, streaming services and high-speed internet cost couples $58 per week if they wanted to maintain a ‘comfortable’ standard of living and $45 at the ‘modest’ level.
CEO Mary Delahunty said the cost of some essential goods and services rose by more than inflation in the three months to 30 June, with electricity prices rising 8.1%, private health insurance 3.7% and fruit and vegetables 4.3%, but fuel prices dropped 3.4%.
“The stereotype of the digitally challenged senior is outdated. Today’s retirees are as connected as anyone, and this is reflected in their household budgets,” CEO Mary Delahunty said in a media release.
The peak super body was releasing the latest quarterly update of its ASFA Retirement Standard, which is widely recognised as the benchmark guide for how much Australians need in retirement to maintain their lifestyles.
It was updated for the cost of smartphones and National Broadband Network (NBN) internet plans in the June quarter for the first time.
The retirement income standards for people aged 65 to 84 who owned their homes were 2.7% higher for couples and 2.3% higher for single people than the equivalent figure in June 2024 for a ‘comfortable’ retirement.
The standards for a ‘modest’ retirement for these homeowners rose 4.6% to $49,922 for couples and 3.6% to $34,522 for singles.
The income needed to fund a modest lifestyle for renters rose by 3.2% to $66,296 for couples and 5.1% to $49,044 for singles, with the costs higher than those of homeowners because renters have ongoing rental costs.
“We continue to see steep cost-of-living increases for retirees. Superannuation matters more than ever in delivering the dignified retirement Australians deserve,” Delahunty said.
A 30-year-old worker with $30,000 in super and earning a median wage of $75,000 was now on track to have $610,000 in retirement, more than enough for a comfortable retirement.
