With the rising cost of living continuing to soar and inflation sitting at a high of 7.3 per cent, it’s no secret that Australians are doing it powerfully.
As international components add to the pressure, we’ve seen grocery, gas, and energy prices skyrocket to match inflation and people in their golden years have seen the bar for a comfortable retirement raised.
According to the Association of Superannuation Funds of Australia (ASFA), comfortable retirement for senior Australians has risen by 1. that cent, as these over 65 now need to spend $68,014 per year for {couples}, and $48,266 for singles.
ASFA’s newest retirement requirements replicate the rise seen in fruit and greens costs, up by 16.2%, dairy merchandise up by 12.1%, imported inflation noticed oils and fat up by 19.3%, coffee up by 10.7% and fuel by 16.6% and automotive gas 18.0%.
Data launched by the Australian Bureau of Statistics (ABS) in March 2022, indicated that older Australians are already suffering the most from the rising cost of living with pensioners experiencing an annual family residing value of 4.9 per cent.
Head of Prices Statistics on the ABS Michelle Marquardt stated the primary perpetrator affecting older Australians is the rise in grocery costs, however, family prices additionally performed a big position.
“These households were also more affected by increases in housing costs, as they have relatively higher expenditure levels on utilities, maintenance and repair, and property rates,” Marquardt said.
However, ASFA Deputy CEO, Glen McCrea said that Australian seniors are higher off than their counterparts throughout the globe, saying superannuation has acted as a buffer for the rising inflation.
“The global energy crisis, raw material scarcity, and supply chain disruptions caused by ongoing COVID lockdowns in China are converging to pose significant inflationary challenges globally and here at home,” McCrea stated.
“We can take some solace from the fact that the investment we’ve made in superannuation over the last three decades is acting as a buffer in the face of these strong headwinds.
“Governments in Europe and the UK are actively considering raising the retirement age or slashing the amount of pension retirees receive as they struggle to deal with the global economic challenges they are facing.
“In contrast, the Age Pension remains affordable for the Government in Australia where, in ago the gate, retirees on average have larger private retirement savings balances than in most countries in the world. This helps cover costs during tougher times, providing a brighter outlook for Australian retirees than is the case for their international counterparts.”
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