The new price tag for a comfortable retirement lifestyle revealed

Retirement is a time when you finally get to put your feet up, relax, and enjoy the rewards of all your years of hard work.

However, recent findings from the Association of Super Funds of Australia (ASFA) indicate that the cost of funding your desired retirement lifestyle has once again risen.

The cost of achieving a comfortable retirement, as per ASFA’s standards, has continued its upward trend, with a 0.5 percent increase in the June quarter. The figures now stand at a record high of $70,806 per year for couples and $50,207 for singles, resulting in an annual increase of 6.1 per cent.

Australian retirees continue to face significant cost pressures on their household budgets as historically high consumer price inflation drives up the price of everyday items. View June Quarter Retirement Standard in full https://t.co/zGhWS7WtSv pic.twitter.com/NtmaIMVHdL

— ASFA (@asfaAUST) August 24, 2023

Deputy CEO of ASFA, Glen McCrea explained that for close to two years now, retiree finances have been under significant strain due to rising costs of essential goods and services

“Price rises in the cost of food were significant in the June quarter. The price of bread increased more than 5 per cent and is up 14 per cent over the year,” McCrea said.

“The cost of vegetables was up almost 4 per cent over the three-month period, with the noticeably higher cost of potatoes due to a shortage linked to unfavourable growing conditions last year. This impacts on a range of products, including hot chips, potato crisps and frozen potato products.

“Once again, putting dinner on the table became more expensive, with the cost of poultry, dairy, vegetables and potatoes up significantly.”

The spending categories that have experienced significant price increases include:

• Insurance (+5.3 per cent) rose across house, house contents and motor vehicle insurance.
• Fruit and vegetables rose 2.4 per cent in the quarter, due to cooler weather reducing supply.
• Takeaway food prices increased by 1.7 per cent in the June quarter.
• Furniture and furnishings (+4.2 per cent) and Household textiles (+9.5 per cent) rose due to prices returning from post-Christmas discounting in the previous quarter.
• There were minor falls in the cost of electricity and gas in the quarter reflecting developments in market price offers, but significant cost increases came into effect from 1 July onwards.