If you thought once you retired life would be smooth sailing, think again.
New figures have revealed Aussies will need to put away even more of their money into savings if they want to live a comfortable life in retirement.
For those of you already retired, this news may or may not be an unwelcome surprise.
Superannuation industry benchmark the Retirement Standard which calculates how much you’ll need to live on once you stop working, has reached record levels as power, healthcare and food costs continue to soar.
The latest calculations from the Association of Superannuation Funds of Australia (ASFA) shows in the past 11 years that the Retirement Standard has been calculated on a quarterly basis, the budget for couples seeking a comfortable retirement rose by 26 per cent, while for singles it increased by as much as 23 per cent.
This means couples will need to set aside close to $60,000 per year for each year of their retirement to live comfortably while singles who own their home outright and are hopefully healthy will now need around $43,665.
The cost of living hasn’t helped with retirement savings either.
Prices have skyrocketed in the last decade with power costs increasing by 125 per cent, healthcare by 60 per cent, property and charges by more than 80 per cent and food prices have gone up by 24 per cent.
The Consumer Price Index also rose by 28.6 per cent over the same period.
ASFA’s chief executive officer Dr Martin Fahy told The Courier Mail that the impending deficit for many people means they must take action now, including increasing superannuation guarantee (SG) contributions from 9.5 per cent to 12 per cent.
“Retirement standard costs are running ahead of the CPI costs,” he said.
“Staying in the workforce longer as you transition into retirement is going to be healthier for you and financially beneficial for you.”
By July 2025, the SG is slated to climb in increments to reach 12 per cent.
While the maximum aged pension has increased over the last decade by 70 per cent for singles and more than half for couples, experts say it started from a low base.
Australian Super’s group executive of membership Paul Schroder has put the onus on the government, telling News Corp that “public policy needs to change”.
“This is a trigger for people to have a look at their super balance but the government needs to do something,’’ he said.
Read more: The new way over 60s are making money.