NEWS Increase in costs hurting retirees
THE cost of living for retirees is growing at a faster rate than the general population, with single retirees needing to spend $829 more per year than last year in order to live comfortably.
According to the Association of Superannuation Funds of Australia (ASFA) Retirement Standard figures from the December 2019 quarter, couples aged around 65 now need to spend around $62,269 per year, and singles $44,146 to live comfortably – which is up 0.8 per cent for each on the previous quarter.
These increases are slightly higher than the increase in the All Groups Consumer Price Index (CPI) of 0.7 per cent.
Over the year to December 2019, costs were up about 2.1 per cent for couples compared to the 1.8 per cent increase in the All Groups CPI.
This means couples need to spend $1292 more a year, and singles need to spend $829 a year to live comfortably.
Council of the Ageing NT (COTA) chief executive Sue
Shearer said the cost of living in an aged care facility or receiving support services was a major financial burden on retirees.
“When they are moved into these facilities, it is often over $10,000 a month they are required to pay. Even if they elect to stay at home, once again they would spend $10,000 or more on a monthly basis on aged care services in their home,” she said.
“It is a worrisome situation for both self-funded and low-income seniors who wish to at least have some quality of life in their later years.”
Retiree and resident of the Pearl Retirement Resort in Fannie Bay Steve Allen – who receives part of his income from a Commonwealth Superannuation Scheme – said he would be “a lot more anxious” if he relied solely on his private superannuation.
“About 10 years ago, they said you really need $400,000 in your super to be able to retire reasonably comfortably.
“Well $400,000 wouldn’t do it now, I don’t think it would be sufficient on its own.”