The Association of Superannuation Funds of Australia (ASFA) has released its Retirement Standard figures for the March 2024 quarter. Here’s what you need to know:
Comfortable Retirement Costs
- Couples aged around 65 need to spend $72,663 per year.
- Singles need to spend $51,630 per year.
These figures represent a 0.7% increase from the previous quarter and a 3.3% increase over the year.
Modest Retirement Costs
- Couples need $47,387 per year.
- Singles need $32,915 per year.
Significant Spending Changes
Several spending categories showed notable changes in costs:
-
Medical and Hospital Services
- Rose by 2.3% in the quarter, up from 1.2% in the December quarter.
-
Insurance Prices
- Increased by 3.7% from the December quarter.
- Annual rise of 16.4%, the strongest since 2001.
-
Food Costs
- Annual increase of 3.8%, down from 4.5% in the December quarter.
-
Automotive Fuel Prices
- Fell by 1.0% in the March quarter.
- Average unleaded petrol price was $1.94 per litre.
-
Electricity Prices
- Moderate annual rise of 2.0%.
- Excluding Energy Bill Relief Fund rebates, prices increased by 17.0% over the year.
-
Domestic Travel and Accommodation
- Rose by 1.3% over the quarter.
Summary
The ASFA Retirement Standard highlights the rising costs associated with retirement, particularly in areas like insurance, medical services, and food. Keeping an eye on these changes can help you better plan for a comfortable or modest retirement. Stay informed and adjust your retirement plans accordingly to ensure financial stability in your golden years.
Source: ASFA Media Release, Retirees continue to face record cost pressures, but the rate of increase eases, 29 May 2024, accessed 29 May 2024.
- Should you have any queries, please contact Tax Ideas Accountants & Advisers on
+61 2 83181545 - Alternatively, you can book an appointment in our live calendar.
