Retirement costs are on the rise!

The cost of living for retirees is climbing… fast!  The costs include increasing fuel prices, higher council rates and electricity costs, private health costs, and a host of other fees and expenses that are just a normal part of everyday living.  Speaking to our clients on a daily basis, they are concerned about the pace of these increases.

According to The Association of Superannuation Funds of Australia (ASFA), a comfortable retirement (which let’s face it…means different things to different people) now costs a couple $1,222 per week of ongoing income and $867 per week for a single retiree.

ASFA Comfortable Retirement Standard

Couple this with the fact that everyday Australians are living longer and more active lives, and it’s clear to see that the pressure to make retirement savings last a retirees lifetime, while affording them a comfortable retirement, is increasing rapidly.

Another fact is that retirees do not benefit from basic annual wage increases that are afforded to employed persons.  This makes rising living costs even harder to manage.

So what’s my point?  Well, the old adage – ‘The best time to start is now’ – has never been more important or relatable to planning for a comfortable retirement.  I recently wrote about why ‘40 needs to be the new 60’ when it comes to planning and implementing tax-effective strategies to grow your nest egg (read the article here).  The recent figures released from ASFA just make the issue even more important.  

With guidance, Australians can reap massive advantages from tax-effective strategies to place them in the best position possible for their eventual retirement.  If you are nearing retirement and have not put thought into your options, strategies or what retirement is going to look like to you, then now is the right time – after all, it’s better late than never.

Talk to your friends, your family, your work colleagues.  Ask them the tough questions – Are you getting the right help with your retirement planning? If not, why not? What does Monday to Friday look like for you when you stop working?  It might be one of the most important conversations you have with someone you care about.

For more information on how we can help you, your family or your friends, contact us at Collective Wealth Advisers.  We tackle today, and tomorrow, together! 

  • collective_admin
  • Nov 11 2021
  • Insight by Ryan McCormac