Tuesday, November 15 2011
The latest edition of the ASFA Retirement Standard has been published today - ASFA Retirement Standard September 2011. The details show that the costs of living for singles and couple in retirement continue to rise.
The key annual figures are:
Modest lifestyle for a single - $21,957
Comfortable lifestyle for a single - $31,767
Modest lifestyle for a couple - $40,412
Comfortable lifestyle for a couple - $55,316
These figures show that the rate of inflation over the 12 months to the end of September has been between 2.82% (Modest lifestyle for a couple) and 3.96% (Comfortable lifestyle for a single).
These figures provide a useful guide for those preparing for retirement both in terms of absolute income requirements but also the rate of inflation being experienced by retirees.
I don't think that it comes as any surprise that the cost of living for those in retirement tends to be growing at a faster rate than the Australian Bureau of Statistics inflation gauge - the Consumer Price Index. Over recent periods this gauge has shown that the costs of food and energy (something that retirees spend a large percentage of their income paying) are rising whereas the costs of buying electronics and cars (things that retirees don't tend to spend a lot on) are not rising as much or even falling.
The other potential use of the quarterly report is to provide a budgeting tool to compare your spending against that of the report contained in the Budget Breakdowns.
Well worth a look for those planning for or in the retirement phase of life!!