A comfortable retirement became more expensive over the past year as high prices continued to eat into household budgets.
It now costs $1,400 more per year for couples, and $900 more per year for singles, to maintain a comfortable lifestyle.
These estimates come from the Association of Superannuation Funds of Australia (ASFA).
ASFA created Australia's Retirement Standard in 2004. It has since become the definitive guide to budgeting in retirement.
The Retirement Standard is updated every quarter to reflect inflation.
ASFA has just released its June quarter estimates of how much it costs to maintain a comfortable retirement in Australia.
In today's dollars, a comfortable lifestyle post-work now costs $75,319 per annum for couples who own their own homes.
That's $1,444 more per year than the March quarter estimate.
For single homeowners, a comfortable lifestyle now costs $53,289, up $906 over the past year.
A modest retirement lifestyle now costs $49,992 per year for couple homeowners, up $1,808 in 12 months.
For single homeowners, a modest retirement now costs $34,522 per annum, up $1,136 from the March quarter figure.
For renters, retirement costs rose even more.
A modest lifestyle for renters now costs $66,269 annually for couples, up $2,010; and $49,044 for singles, up $2,381.
Retirement costs increased more for renters because strongly rising weekly rents must be factored into their budgets.
You can find out what ASFA means by a 'comfortable' and 'modest' retirement here.
Image source: Getty Images
What has contributed most to the jump in retirement costs?
ASFA CEO Mary Delahunty said:
We continue to see steep cost-of-living increases for retirees.
Beyond digital costs, we're seeing heightened price pressures on some essential goods and services.
This quarter brought above-inflation increases in private health insurance, electricity, and fresh food.
In the June quarter, the cost of private health insurance jumped 3.7%, the largest quarterly increase since 2018.
Electricity prices rose 8.1% and fruit and vegetables lifted 4.3%.
These increases were somewhat offset by a 3.4% reduction in petrol prices due to lower global oil prices.
What about superannuation?
Delahunty said superannuation savings now mattered more than ever to ensure a dignified retirement.
ASFA says couples need $690,000 in superannuation and singles need $595,000 by age 67 to fund a comfortable lifestyle.
Both couples and singles only need $100,000 in super to fund a modest retirement.
Pension boost today will help cover costs
To help cover rising costs in retirement, the age pension is indexed twice per year to keep pace with inflation.
The pension is getting a boost today.
Singles pensioners will receive an extra $29.70 per fortnight, and couples will receive an extra $22.40 per person, per fortnight.
These adjustments will take the full age pension up to $1,178.70 per fortnight for singles and $1,777 combined for couples.
On an annual basis, that works out to be $30,646 per annum for singles and $46,202 per annum for couples.
