The cost of living in Australia and how Age pensioners are coping with their retirement worries the Australian government. While you are working you lead a lifestyle. That lifestyle implies spending a certain amount of money each month or fortnight. As we are keen on living that way, it is more than likely that we want to carry on like that. However, if you are getting close to retirement age, you’d better check the current cost of living. It might worry you.
The Government of Western Australia through GESB superannuation advises Australians to save money. Continuing with the expenses you have nowadays, you may need to save up a lot. They recommend saving up to 70% of the amount of money that you earn annually. It is always best to think ahead and have a look at what others usually spend and the life they lead. The cost of living affects living standards and ASFA knows about it.
The ASFA, the acronym for the Association of Superannuation Funds of Australia does research every year. They generally publish a report on the annual costs for pensioners during their retirement. Since the cost of living has made prices unaffordable for money, they try to help both singles and couples. ASFA pays attention to the two main living standards for retirees in Australia.
The first one deals with a modest retirement while the second one with a comfortable retirement. This modest living standard is better than just getting the Age Pension. Nonetheless, it will only allow you a few simple extra activities. Whereas, a comfortable retirement can cope better with inflation and the rising cost of living. Besides, it can allow you to have more fun on holidays, goods, state-of-the-art technology, and so on.
You might wonder about the amounts of money that they refer to. They range from a modest living standard for singles with $27,754 to $39,788 for couples. Comfortable goes from $43,996 to 61,108.
Here are the expenses you might face during your retirement to cope with the cost of living
There are so many things that we spend money on that we barely realize about it. So let’s disclose the most common ones during your retirement and be ready to face the cost of living nowadays.
The most common things to spend money on are the home, haircuts, and heating or cooling the different rooms in your house. Apart from that, you will also need to eat, so you need to get food. Clothes also wear out and equipment like laptops break down. Surely, you may want to go on holiday at least once in a while. Do not forget to look after your health, so health care is also in the basket. If you can still drive, your car may not start the day you need it the most. Leisure is last, but not least. So, put that in too.