Post by bear on Dec 23, 2023 9:30:56 GMT 7
Super inflation: Annual retirement cost surges $11,460 in 5 years
As the cost of living has jumped, so too has the cost of retirement.
Everyone knows the price of virtually everything has hiked over the past year or so as we continue to grapple with the cost-of-living crisis. So, if you’re a retiree who feels like 2023 was the most expensive year yet, that’s because it was.
The cost of retirement, and how much superannuation you now need to comfortably live when you finish working, has also jumped. In 2023, the cost of a comfortable retirement is $71,724 for couples and $50,981 for singles.
Concerned by how much retirees are being affected by our inflation problem, I dug out the Retirement Standard figures from the Association of Superannuation Funds of Australia (ASFA) for 2018.
The amount of super you need to retire has surged thanks to the rising cost of living. (Source: Getty) (Samantha Menzies)
It shows that, just five years ago, couples aged 65 needed to spend $60,264 per year. For singles, that figure was $42,764. That’s an annual increase of up to $11,460 in the past five years alone.
And, when I say comfortable, I don’t mean lavish. Here’s a look at where costs have risen the most and where there is a surprise silver lining.
How 'comfortable' retirement costs have risen in the past five years
Spend category (see attachment)
The good news is some items cost little more than they did five years ago. It makes sense - when you consider where inflation has been spiking and competition and cheaper production has kept prices in check - that the prices of clothing and footwear have increased hardly at all. Oddly, energy, under this metric, has barely budged since 2018 either.
So, where is the hip-pocket pain hitting the most? The leap in transport costs is the biggest – retirees are paying 26 per cent more, which higher petrol costs would mostly account for.
But food hikes are almost as high at 23 per cent, as the higher price of petrol, labour, and supply chain issues have ‘fed’ in.
au.finance.yahoo.com/news/super-inflation-annual-retirement-cost-surges-11460-in-5-years-234204246.html
As the cost of living has jumped, so too has the cost of retirement.
Everyone knows the price of virtually everything has hiked over the past year or so as we continue to grapple with the cost-of-living crisis. So, if you’re a retiree who feels like 2023 was the most expensive year yet, that’s because it was.
The cost of retirement, and how much superannuation you now need to comfortably live when you finish working, has also jumped. In 2023, the cost of a comfortable retirement is $71,724 for couples and $50,981 for singles.
Concerned by how much retirees are being affected by our inflation problem, I dug out the Retirement Standard figures from the Association of Superannuation Funds of Australia (ASFA) for 2018.
The amount of super you need to retire has surged thanks to the rising cost of living. (Source: Getty) (Samantha Menzies)
It shows that, just five years ago, couples aged 65 needed to spend $60,264 per year. For singles, that figure was $42,764. That’s an annual increase of up to $11,460 in the past five years alone.
And, when I say comfortable, I don’t mean lavish. Here’s a look at where costs have risen the most and where there is a surprise silver lining.
How 'comfortable' retirement costs have risen in the past five years
Spend category (see attachment)
The good news is some items cost little more than they did five years ago. It makes sense - when you consider where inflation has been spiking and competition and cheaper production has kept prices in check - that the prices of clothing and footwear have increased hardly at all. Oddly, energy, under this metric, has barely budged since 2018 either.
So, where is the hip-pocket pain hitting the most? The leap in transport costs is the biggest – retirees are paying 26 per cent more, which higher petrol costs would mostly account for.
But food hikes are almost as high at 23 per cent, as the higher price of petrol, labour, and supply chain issues have ‘fed’ in.
au.finance.yahoo.com/news/super-inflation-annual-retirement-cost-surges-11460-in-5-years-234204246.html
