As Christmas fast approaches, retirees have received some welcome news: the cost of funding a comfortable retirement has fallen in the September quarter, leaving more money in the pockets of older Australians.

According to the latest data from ASFA (Association of Superannuation Funds of Australia), couples aged around 65 now need $73,031 annually to meet the ASFA Comfortable Standard, while singles require $51,814.

To achieve a comfortable retirement, a single person retiring at age 67 needs $595,000 in superannuation savings, while a couple requires $690,000.

The reduction in retiree budgets during the September quarter was driven by lower automotive fuel prices and government rebates—both Commonwealth and State—designed to ease energy costs.

ASFA CEO Mary Delahunty described the easing of retirement costs as “a welcome holiday gift for retirees at this time of year.”

“It’s great that in its 20th year of providing Australians with the definitive guide on how much money they need in retirement, the ASFA Retirement Standard can show some relief for retirees after a couple of tough years of rising costs of living,” Delahunty said.

While the easing of retirement budgets is positive, Delahunty cautioned that over the 20 years of the ASFA Retirement Standard, retiree costs have risen faster than those of the general population due to the specific expenses faced by those no longer working.

“This shows Australians need to manage their retirement savings carefully and is why it’s clear Australians need better access to trusted, affordable financial advice to help them plan for their financial future,” she said.

Given the challenges and specific expenses retirees face, it’s important to make the most of your savings and stretch your budget as far as possible.

“One effective strategy is to minimise your expenses and keep them within your budget. Don’t spend more than you have and more than you receive in income,” Founder and CEO of Stockspot, Chris Brycki advises.

By being mindful of expenses and finding creative ways to cut costs, you can enjoy a comfortable and fulfilling retirement.

Brycki advises that “retirees can look to a variety of places to save money”.

“This can be in paying for utilities, groceries and healthcare,” Brycki said.

Some of the other main areas in which retirees can find much-needed savings include:

• Government – Most governments provide seniors with discounts and reduced prices for items such as transport.

“Take a look at what your state/territory government provides. In NSW, permanent residents aged 60 and over can apply for either a NSW Seniors Card or Senior Savers Card,” Brycki says.

“This entitles the user to free items, discounts and access to special offers across government and non-government services.

“As an example, McDonald’s provides card holders with a free food item. The type of discounts differ from state to state and business to business.”

• Groceries – Brycki suggests that “where possible, bulk buy things when they go on sale, especially non-perishable items like cleaning products. Also look for special savings days.”
• Utilities – some utility providers offer a discount to seniors and retirees. Shop around to find a provider that offers discounts and to ensure you are getting the best prices.
• Healthcare – again shop around to ensure you have the best health cover available. Some providers give discounts to seniors provided they have a Seniors Card or are retired.

IMPORTANT LEGAL INFO This article is of a general nature and FYI only, because it doesn’t take into account your financial or legal situation, objectives or needs. That means it’s not financial product or legal advice and shouldn’t be relied upon as if it is. Before making a financial or legal decision, you should work out if the info is appropriate for your situation and get independent, licensed financial services or legal advice.