Retirement costs outstrip inflation

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. 

Important Information

The above information provides an overview or summary only and it shouldn’t be considered a comprehensive statement on any matter or relied upon as such. The above information doesn’t take into account your personal objectives, financial situation or needs. It’s important for you to consider these matters before making any financial decision and I recommend you seek help from a financial adviser.