Want a comfortable retirement? Here's the new super figure Australians need
Australians now need a little bit more in their super to retire comfortably, with the rising cost of living driving up the latest retirement standard.
A couple who own their home and are seeking a comfortable retirement will need $78,998 a year, or $1,513 a week. A single homeowner will need $56,166 a year, or $1,076 a week.
Those figures were released on Tuesday by the Association of Superannuation Funds of Australia (ASFA), the peak body for the super industry.
It showed for homeowners aged 65 to 84, the budget for a comfortable retirement rose 0.5 per cent for couples and 0.4 per cent for singles in the June quarter.
For a modest retirement, their budget rose 0.4 per cent for couples and 0.3 per cent for singles, to $52,690 and $36,548 a year respectively.
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
For retirees aged 85 and over, a comfortable retirement will cost $74,484 per year for couples and $53,964 per year for singles. For retirees who rent privately, a modest budget is now $69,376 per year for a couple and $51,418 per year for a single.
ASFA CEO Mary Delahunty says retirees are being affected by the soaring cost of living more than others because the things they buy are rising quicker than the inflation rate of 3.8 per cent.
These include electricity, which the group said rose 22.4 per cent after federal and state rebates ended (22 per cent), car costs (6.5 per cent), medical services (5 per cent), insurance (almost 5 per cent) and meals out (4 per cent).
"Retirees are among the groups hit hardest by the cost of living crisis because their budgets are weighted towards the things going up in price the most," Delahunty said.
AFSA defines a comfortable retirement as being able to afford quality private health insurance, eat out most weeks, and go on a yearly holiday in Australia or overseas every few years.
A modest retirement includes basic health cover, such as a hospital-only plan, domestic-only holidays, and occasional eating out.
On the age pension alone, it's a much slimmer budget with limited lifestyle and basic living spending.
"Most of these things drop out of your budget entirely," ASFA CEO Mary Delahunty said.
5News aggregated this summary from the outlet’s public feed. The full article, with all the context, is on www.sbs.com.au — the content belongs to SBS News - Latest.