Association of Super Funds of Australia’s (ASFA) retirement standard figures for 2Q20 indicate couples aged about 65 need to spend 0.8% more a year at $62,269 and singles, $44,146, than in 1H20 – slightly up on the 0.7% rise in the “all groups” CPI.
CEO Martin Fahy said the drought had affected prices retirees paid for food and there had also been other “significant price increases”.
The overall cost of food increased by 2.6 % over the past 12 months, mainly because of the drought but the prices of some foods had increased even more. Beef prices were up 8.2%, pork, 7.9% and vegetabkes, 3.7%.
“Over the year to 2Q20, costs were up about 2.1% for couples compared to the 1.8% increase in the all groups CPI,” Fahy said. That equated to couples needing to spend $1,292 more a year, and for singles, $829 more.
“Cost increases for retirees have exceeded those for the general population and we’ve also seen an acceleration in the rate of increase in retirement expenses,” he said.
Home ownership costs had also gone up – home maintenance costs had increased by 2.7%; water and sewerage charges were up 2.9%; and property rates, up 2.5%.