ASFA Retirement Standard
The cost of living for retirees rose modestly in the September 2018 quarter, the Association of Superannuation Funds of Australia (ASFA) has found.
Based on the ASFA Retirement Standard the cost of a ‘comfortable’ retirement, at age 65, for couples is now $60,843 (up 0.4% from the previous quarter) and $43,200 for singles (up 0.6%).Read More »Cost of a comfortable retirement rises modestly in September 2018 quarter
The cost of a comfortable retirement has increased by $130,000 according to the Association of Superannuation Funds of Australia, due to changes to the Age Pension and increases in the cost of living.
Australian retirees in their 90s need to spend slightly less to maintain their standard of living than younger retirees, but this is still more than can be afforded solely on the Age Pension, according to the Association of Superannuation Funds of Australia (ASFA).
This finding is contained in a report by ASFA, titled Spending patterns of older retirees, released alongside a new retirement standard, the ASFA Retirement Standard for Older Retirees.
The Association of Superannuation Funds of Australia (ASFA) says the cost of a comfortable retirement for couples has risen by $1,131 annually, compared to this time last year. The cost of a comfortable retirement for singles has risen by $767.
These estimates are contained in the latest update to the ASFA Retirement Standard. The cost of a comfortable retirement for couples rose 0.3% in the September 2014 quarter. ASFA says this would require a joint superannuation balance of “around $510,000.” The cost of a comfortable retirement for singles rose more, 0.4%, requiring a super balance of “around $430,000.”
According to ASFA, in the forth quarter of 2013/14 the cost of a ‘comfortable retirement’ rose 0.5%, to $58,128 per year. To fund this would require a superannuation balance of around $510,000 for a couple and $430,000 for singles, based on ASFAs calculations.
To arrive at these figures ASFA has assumed that people “do not retire before qualifying for the Age Pension” and that they will receive at least a part Age Pension.
A large portion of the increase in the cost of retirement was due to the rising costs of medical and hospital services, “which occurred mainly as a result of the increases in private health fund premiums effective from 1 April 2014” said ASFA.