The living expenses of retirees have risen again, according to the latest figures from the Westpac/Association of Superannuation Funds (ASFA) Retirement Standard research report.
During the March quarter 2008, the living expenses for a retired couple living comfortably rose by 1.1 percent to $49,502 a year. The cost of living for couples who maintained a modest lifestyle also rose by 1.2 per cent to $26,851 a year.
"All we can say to people is that it's a warning. The cost of living is rising and that gap between the cost of living and the pension may continue to increase more and more," ASFA chief executive Pauline Vamos said.
"Baby boomers want to make their own choice in retirement, they don't want to just have an existence and only think about covering their day-to-day expenses. What we're saying to people is you've got to really plan for this."
Food prices were up 2.1 per cent in the March quarter, with staples such as vegetables up 2.9 per cent and bread up 4 per cent. Beer prices were also up by 1.6 per cent.
The cost of petrol increased markedly, up 5.4 per cent, with average unleaded petrol prices ranging between $1.35 and $1.45.
The cost of clothing bucked the trend as prices fell by 2.4 per cent. Prices for audio, visual and computing equipment also fell substantially by 5.8 per cent.
The rising Australian dollar helped reduce the cost of imported goods.
