Want a happy retirement? Here’s the record price tag a couple now need to live a comfortable lifestyle

Above-inflation cost rises over the past year may have more seniors hoping to maintain a decent standard of living in retirement thinking about reining in their spending this Christmas. The Association of Superannuation Funds of Australia’s latest in-depth examination of the price of funding a so-called “comfortable” lifestyle when they retire shows the cost for couples is now $76,505 a year — a new record, and up from $75,319 in the June quarter. For a single, it’s $54,240, up from $53,289. For comparison, Centrelink’s full annual rate of the age pension is $46,202 for couples, and $30,646 for singles. The cost of a comfortable retirement includes the best health insurance you can buy, fast internet and streaming services, an above-average car, regular leisure activities, occasional takeaway and restaurant meals, frequent upgrades to your wardrobe, home repairs or upgrades, annual domestic travel, and splashing out on a big overseas trip every seven years. It also assumes the retirees are aged 65-84 and own their own home. When viewed as a total nest egg balance, a couple hoping to live a little in retirement will need $690,000. For a single, it’s $595,000. A more “modest” lifestyle — with basic health insurance, a basic mobile plan and modest internet data allowance, owning a cheaper car, few leisure or travel activities, limited home repairs, and keeping a close eye on utility costs — now costs a couple $50,866 a year, and a single $35,199. Experts remind those approaching retirement and short of that “comfortable” mark in their nest egg not to panic. The figures often work in conjunction with supplemental income through a part-pension. Financial advisers also say it’s important to remember annual spending falls as retirees get older, and one couple’s version of a comfortable lifestyle can vary from another’s. The overall cost of a comfortable retirement in the year to the end of September was up 3.5 per cent for couples and 3.6 per cent for singles. Budgets rose 1.6 per cent for couples and 1.8 per cent for singles in the three months to the end of September — just above the consumer price index reading of 1.3 per cent for the same period. ASFA said retirees experienced stronger price pressures than the general population because they spent more of their budget on essential items that had risen the most, such as groceries and power costs. But chief executive Mary Delahunty reassured retirees the financial pressures highlighted the strengths of Australia’s superannuation system. “Retirees might be feeling the squeeze this Christmas because prices have risen fastest in the things they spend most on, like food, energy and health,” Ms Delahunty said. “Some older people may cut back on pricier gifts, travel and social occasions to stay on top of the basics. “However, thanks to superannuation, most Australian retirees are living with additional income beyond the age pension each month, which makes them more financially resilient, including at financially stressful times of the year like Christmas.” Audio, visual, media and services led the extra budget pressures for retirees in the September quarter, up 9.3 per cent, closely followed by electricity (up 9 per cent), property rates (up 6.3 per cent), domestic holiday travel and accommodation (up 5.2 per cent) and the price of takeaway and restaurant meals (up 1.3 per cent). Ms Delahunty said changes to the super system in 2025 — including lifting the superannuation guarantee to 12 per cent super and payday super settings that would require employee contributions to be paid at the same time as wages — would further strengthen financial resilience for future generations. ASFA’s latest snapshot shows average superannuation account balances have risen to a record $172,834 across nearly 18 million account holders aged 15 and older. For those approaching or in retirement, the figures are higher again, with those aged 65-69 now averaging around $420,934 in retirement savings. ASFA has been generating its retirement standard for two decades.