ASFA’s retirement standard at the modest level has increased for both couples and single people.
For the March 2018 quarter, couples aged 65 living a modest retirement need $39,353 per year and single people need $27,368. This is up from the September 2017 quarter (the most recently reported quarter) at $35,189 and $24,506 respectively.
The increase reflects price increases, more detailed pricing of items and changes in the package of goods and services in the budgets.
“Along with updating budget items for price increases and providing more detailed information on items such as water charges, other significant changes have been made in the budgets to reflect new products and services. These include subscriptions to digital streaming of music and movies and television programs. The budgets also make allowance for broadband internet connection with substantial downloads,” ASFA chief executive Martin Fahy said.
The change was less pronounced for those aged around 65 living a comfortable retirement; couples would need $60,264 per year and singles $42,764 at the March 2018 level.
Table 1: Budgets for various households and living standards for those aged around 65 (March quarter 2018, national)
The figures in each case assume that the retiree/s own their own home and relate to expenditure by the household. This can be greater than household income after income tax where there is a drawdown on capital over the period of retirement. All calculations are weekly, unless otherwise stated.
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