The Association of Superannuation Funds of Australia (ASFA) Retirement Standard figures have revealed that a couple looking to achieve a ‘comfortable’ retirement will need to spend $56,236 a year, while those seeking a ‘modest’ retirement lifestyle need to spend $32,511 a year.
The figures have increased by 1.7 per cent and 2.3 per cent respectively on the September quarter 2011 figures of $55,316 and $31,511.
The change in cost of retirement between the June and September quarters this year rose by 1.9 at the comfortable level and 2.3 per cent at the modest level.
This is in contrast to a 1.4 per cent increase in the All Groups Consumer Price Index (CPI) over the same period, as a result to different patterns of spending between retirees and the general population.
More retirees tend to own their own homes and spend less on education services than the bulk of the population.
“In contrast, electricity, food, health, transportation and reaction spending form a large part of retiree budgets,” the report said.
“The relatively large increase across most of these categories led to the larger than usual increase in the costs of retirement at the comfortable level and particularly at the modest level.”
The last quarter saw a 15.3 per cent increase in the price of electricity and a 1.9 per cent increase in the price of food, particularly fruit and vegetables on the back of unfavourable growing conditions.
However costs for transport fell in the September quarter by 0.8 per cent as the result of a 3.9 per cent decrease in the price of petrol and a 1 per cent fall in the price of motor vehicles.
