Max Fleet

Rising costs, pension changes take a bite out of savings

RISING living costs and age pension changes mean Northern Rivers couples must find $130,000 extra if they hope to retire well.

The latest Association of Superannuation Funds of Australia Retirement Standard says revisions to the pension means test, higher costs of living and increased life expectancy will take a major bite out of retirement savings.

The association estimates Northern Rivers couples will need a super balance of $640,000 - or $58,784 a year - and singles will need $545,000 - or $42,861 annually - to live their golden years in comfort.

This is an increase in the super balance of $130,000 and $115,000 on previous estimates.

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ASFA chief executive officer Pauline Vamos said increased fuel and health costs were having an impact on the cost of living but falling domestic holiday travel and accommodation and pharmaceutical product costs could offset some of the rises.

"A combination of increasing cost pressures, increasing life expectancy and the recently legislated changes to the age pension means test have had an impact on the estimated savings Australians will need to live a comfortable retirement," she said.

Would you be able to save another $130,000 before you retire?

This poll ended on 30 October 2015.

Current Results

There is no way I could save that much money before I retire

72%

I'm confident I have enough wealth to make it through retirement

17%

I better start saving if I'm planning to live to 90

4%

Superannuation is not something I worry about

6%

This is not a scientific poll. The results reflect only the opinions of those who chose to participate.

- APN Australian Regional Media



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