During the March quarter of this year, the expenditure required for couples wanting to live a comfortable lifestyle rose to $57,817 per year, which means they would require a superannuation balance of around $510,000 to achieve this.
Couples seeking a modest retirement lifestyle would need $33,509 each year or a superannuation balance of $430,000, an increase of 0.5 per cent since the previous quarter.
The retirement costs for singles also rose by 0.5 per cent to $23,283, while couples seeking a comfortable retirement will now need to spend $42,252 a year, an increase of 0.2 per cent from the past quarter.
The most significant price rises were for automotive fuel which increased 4.1 per cent, medical and hospital services which rose 1.9 per cent and pharmaceutical services which went up 6.1 per cent.
The repair of motor vehicles, clothing and holiday travel and accommodation on the other hand all decreased.
ASFA chief executive Pauline Vamos said rising costs highlight the importance of superannuation and ensuring people have enough money to lead the lifestyle they want in retirement.
She also said the government must consider the impact policy changes may have on the cost of living for Australia’s retirees in releasing its first Budget next week.
"Retirees often have less flexibility in their budgets, which means policy changes that increase the cost of non-discretionary items, such as electricity or fuel, may mean they have to cut back in other areas, and lower their standard of living,” said Ms Vamos.
