The latest Association of Superannuation Funds of Australia (ASFA) Retirement Standard data has shown annual budgets for a comfortable lifestyle in retirement rose faster than inflation over the year to September, and were up by 3.5 per cent for a couple and 3.6 per cent for an individual.
In comparison, the consumer price index for the year to September rose by 3.2 per cent.
“Retirees might be feeling the squeeze this Christmas because prices have risen fastest in the things they spend most on, like food, energy and health. Some older people may cut back on pricier gifts, travel and social occasions to stay on top of the basics,” ASFA chief executive Mary Delahunty noted.
The ASFA standard found for homeowners aged 65 and over, the annual budget for a comfortable lifestyle in retirement for an individual was $54,240 and $76,505 for a couple.
Pushing up the cost of living was a 9 per cent increase in electricity prices over the quarter, a 6.3 per cent rise in property rates and a 9.3 per cent jump in audio, visual, media and services.
Further, domestic holiday travel and accommodation for the quarter jumped by 5.2 per cent and the cost of eating out and takeaway food rose by 1.3 per cent.
“Thanks to superannuation, most Australian retirees are living with additional income beyond the age pension each month, which makes them more financially resilient, including at financially stressful times of the year like Christmas,” Delahunty said.
“Fortunately for many retirees, it is the income they get from their superannuation savings that allows them to keep celebrating occasions like Christmas without having to worry about every dollar.”
The ASFA standard found that for a modest lifestyle, a single homeowner would need a budget of $35,199 a year and homeowner couples would need a budget of $50,866. If people were still renting, an individual would be able to enjoy a modest lifestyle on $49,676 a year, while a couple would need $67,125 over a 12-month period.