Aussies now need an extra $50,000 to retire comfortably, thanks to high food, fuel, travel and electricity prices.
Aussies couples aged around 65 now need $69,691 per year to achieve a comfortable retirement, while singles need $49,462 per year, according to the latest figures from the Association of Superannuation Funds of Australia (ASFA).
In total, Aussies couples need to have $690,000 in superannuation savings to fund a comfortable retirement, while singles need $595,000.
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This was an increase of $50,000 for both sums, which ASFA said took into account the rising cost of living and changing spending habits, such as increased use of mobile phones and streaming services. These budgets all assume the retirees own their home outright.
“Unfortunately, Australians continue to face sharp price increases for essential goods and services,” ASFA CEO Martin Fahy said.
Some of the steepest price increases included a 9.2 per cent hike in food prices, a 17.4 per cent increase for gas, an 11.7 per cent increase for electricity and a 13.2 per cent increase on fuel.
“Additionally, for retiree households, falling real wages have meant that the Age Pension payments have not benefited from adjustments linked to wage increases,” Fahy said.
Around 2.6 million people receive the Age Pension, equating to more than three in five of the population aged 65 and over.
This week, payments increased by 3.7 per cent so couples would now receive a combined $1,604 per fortnight, including the pension supplement and energy supplement. Singles will receive $1,064 per fortnight.
Fahy said he was hopeful Aussies could build up their superannuation savings when the amount employees pay increases to 12 per cent in 2025.
“While recent price increases have particularly impacted on the currently retired, the legislated 12 per cent SG [Superannuation Guarantee] will support the majority of Australians building adequate superannuation savings across their working lives to face future retirement costs with confidence,” he said.