Anyone in retirement is probably experiencing the rise in prices, be it filling up the car at the petrol bowser or doing the weekly shop.
The Association of Superannuation Funds of Australia (ASFA), the peak policy, research and advocacy body for the nation’s superannuation industry, has confirmed the cost of living is hurting people aged 65 and over.
Its Retirement Standard March quarter 2022 figures indicate that couples aged around 65 living a comfortable retirement need to spend $65,445 per year and singles $46,494, which is up 1 per cent and 1.2 per cent respectively on the previous quarter.
The annual percentage increases in the comfortable budgets are the largest since 2010. In the year to March, prices rose by around 4.2 per cent for the comfortable couple budget and by 4.7 per cent for the comfortable single budget.
“While this is marginally smaller than the annual inflation impact of 5.1 per cent for wage earners, the reality is that retirees are doing it tough too,” said ASFA Deputy CEO, Glen McCrea.
It has not been all bad news, though.
In the year to March, the Age Pension increased by 3.7 per cent, and Age Pensioners and Seniors Health Card holders also benefitted from a $250 one-off payment in April 2022. Additionally, there was a reduction in the minimum drawdown factor for retirees with a superannuation account-based income stream.
Retirees suffering steep price rises in food, fuel, and health costs will be further hit by substantial out-of-pocket expenses for dental treatment, optical expenses, and gap payments for procedures in hospitals.
Substantial increases in the cost of electricity and gas are also expected, said ASFA.
How prices have risen:
- vegetables 6.6%
- fruit 4.9%
- meat and seafoods 4.8%
- waters, soft drinks and juices 5.6%
- automotive fuel 11%
- motor vehicles 1%
- eating out 1.2%
- non-durable household products 6.7% due to price rises for toilet paper and paper towels
- domestic and household services 0.9%
- pharmaceutical products 5.7%
- medical and hospital services 1.8%
Large pots of stew are my way of saving money when prices rise in winter.
