Huge new sum Aussies need to retire
Exclusive: Hikes to petrol prices, meats, furniture and appliances has increased the amount of superannuation Australians need in retirement.
New figures released in the Association of Superannuation Funds of Australia's quarterly retirement standard showed costs climbed by 0.3 per cent for couples and 0.5 per cent for singles in the September quarter.
For a couple wanting a comfortable retirement they now need $62,083 per year to spend, while singles need $43,901.
The data showed increases included petrol +9.4 per cent, beef +2.6 per cent, furniture +6.4 per cent and household appliances +5.3 per cent.
ASFA's chief executive officer Dr Martin Fahy said COVID-19 had significantly impacted the nation's economic conditions and people's hip pockets.
"There has been a partial unwinding of both price increases and decreases that immediately flowed from the impact of the pandemic," he said.
"Dramatic changes in our lifestyles had a big impact on demand and prices right across the economy."
For Australians to achieve a comfortable retirement at age 67 ASFA data showed singles should have $545,000 in retirement savings and couples $640,000.
A comfortable retirement enables a healthy retiree to have a good standard of living including top level private health insurance, travel on domestic and international holidays, own a reasonable car and have a good internet service and mobile phone allowance.
The Federal Government last week released the final report of its Retirement Income Review.
It found increases to compulsory super would result in people having better living standards once they stop work but it could significantly impact their living standards while employed.
The compulsory super rate is 9.5 per cent and is scheduled to start rising from July next year up to 12 per cent by 2025.
Treasurer Josh Frydenberg said the Federal Government would review these legislated increases before then to determine whether they should proceed given the final hit on the economy in 2020.
QSuper's chief of member experience Jason Murray said Australians were living longer and they needed to plan for retirement accordingly.
"Nobody can accurately predict what will happen with the cost of retirement in the future, so it's important to make sure you have enough in your super to fund the lifestyle you want without worrying about the money running out," he said.
"Making extra contributions throughout your working life is a great way to boost your retirement savings and small amounts can make all the difference over time.
"For example, contributing just $20 per week from your take home pay over 30 years can add more than $85,000 to your income in retirement."
However in the review the authors criticised ASFA's retirement standard and said it "provides a higher living standard than most people in the workforce enjoy today".
Originally published as Huge new sum Aussies need to retire