Falls in petrol prices and pharmaceuticals have pushed down the annual costs for Australian couples living comfortably in retirement to $47,800.
But retirees will still need around $627,581 in savings for a comfortable retirement.
New figures released by the quarterly Westpac and Association of Superannuation Funds of Australia (AFSA) Retirement Standard show the annual cost for a couple living comfortably in retirement fell marginally in the December quarter.
The annual cost of a modest retirement lifestyle for a couple also fell slightly to $25,892.
In the twelve months to June 2006, the cost of a comfortable lifestyle in Sydney had risen by 3.8 per cent, or $1700 a year, while a modest lifestyle rose four per cent or $701 a year.
“The main factor behind the small decrease in the overall cost of living for retirees was the large fall in the price of petrol, which led to a 3.8 per cent decline in the costs of transportation compared to the previous quarter,” ASFA research director Ross Clare said.
“Health costs also fell as a result of a fall in the cost of pharmaceuticals.”
However, retiree savings were hurt by increases in the cost of food, travel and accommodation, with factors that included high banana prices following Cyclone Larry and the drought.
“To generate an annual income for a comfortable lifestyle, a couple hoping to retire at 65 would require total savings of around $627,581,” Westpac Financial Planning head of offer and design Kate McCallum said.
However, identifying a magic lump sum figure has always been a difficult task as it is not as simple as multiplying your annual budget with the number of retirement years, ASFA chief executive Philippa Smith said.
Smith said the proposed super reforms from July 1 will help those looking to close the gap between their super savings and retirement goals.
