Increased insurance premiums impact retirement budgets: ASFA

Couples around the age of 65 require $49,290 annually for retirement.

The Association of Superannuation Funds of Australia (ASFA) revealed the cost of funding a comfortable retirement has increased by 3.7% over the past year due to rising prices for essential goods and services. 

The June quarter saw notable increases in home and vehicle insurance costs, as well as private health insurance premiums. 

Consequently, retirees have experienced further financial strain, with budgets rising by 0.9% for both singles and couples.

Currently, couples around the age of 65 require $49,290 (A$73,337) per year for a comfortable retirement, whilst singles need $35,006 (A$52,085). 

The ASFA Retirement Standard, which has set the industry benchmark for 20 years, reflects these costs and drives standards for retiree spending on essentials such as health, communication, clothing, and household goods.

($1.00 = A$1.49)