Retirement costs outstrip inflation

by Andrew Newman
in Economy
5 Mar 2010 | 0 Comments

Latest data from the Westpac ASFA Retirement Standard reveals that retirement costs are rising faster than inflation.

ASFA says this is due to the different spending patterns of retirees. Generally retirees own their own home so housing costs are not a major factor. Instead, retirees tend to focus their spending on food, health, transportation and recreational activities.

Food costs increased by 1.4% over the December quarter, with fruit prices rising substantially due to adverse weather conditions. The other major cost contributors were domestic holiday travel and accommodation, which rose by 6.6% over the quarter.

Over the December quarter, total costs for a couple living a comfortable retirement increased by 0.9%. Such a couple would now need an annual income of $51,727 to support their lifestyle.

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Retirement costs outstrip inflation

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