Media Release

Price increases for retirees but more Australians set to have a comfortable lifestyle in retirement in the future

Published 18 August, 2022

Published 18 August, 2022

18 August 2022

Price increases for retirees but more Australians set to have a comfortable lifestyle in retirement in the future

The ASFA Retirement Standard June quarter 2022 figures indicate that couples aged around 65 living a comfortable retirement need to spend $66,725 per year and singles $47,383, up by 2.0 per cent and 1.9 per cent respectively on the previous quarter.

Over the year to June 2022 prices were up by around 6.2 per cent for the comfortable couple budget and by 6.7 per cent for the comfortable single budget.

The percentage increases in the budgets for those aged around 65 were slightly higher than the quarterly increase in the June quarter All Groups CPI of 1.8 per cent, and the annual change of 6.1 per cent.

Retirees have faced significant price increases for non-discretionary items such as food, automotive fuel, and health costs.

“Retiree households continue to face ever increasing health costs, with the annual increase in private health insurance applying for 1 April,” said ASFA Deputy CEO, Glen McCrea.

“While there is considerable subsidisation of health costs and benefits being paid from private health insurance, out of pocket expenses remain substantial for items such as dental treatment, optical expenses, and gap payments for procedures in hospitals.

“Private health insurance premiums rose on average by 2.7 % from 1 April with some major insurers increasing premiums by more than 3%.

“However, other insurers have postponed premium increases until later in the year.”

Retirement budgets for those aged around 85 were up by around 0.8 per cent from the previous quarter. The older retiree budgets were not directly affected by the increase in petrol prices, which were significant in the June quarter, as there is no allowance for car ownership for this age group. The over 85 budgets also do not include any overseas travel.

However, while retirees are doing it tough at the moment, the good news is the superannuation system is delivering. This is a result of more retirees having received the benefits of compulsory superannuation over long periods and also the impact of the legislated phased increase in compulsory superannuation to 12 per cent of wages by 2025 (the rate went to 10.5 per cent of wages on 1 July this year).

Recently published Department of Social Services figures indicate that only around 40 per cent of those currently aged between 66 and 70 receive the Age Pension indicating the success of compulsory superannuation in both boosting retirement incomes and containing the Age Pension bill for the government.

“Despite the challenges of recent years, superannuation continues to achieve its objective of materially lifting the standard of living of older Australians and allowing more retirees to achieve the dignity they deserve in retirement,” said Glen McCrea.

Details for the retirement budget price changes (all price changes from the previous quarter except if specifically referred to as annual)

Fruit and vegetables rose 5.8% due to heavy rainfall and flooding in key production areas. COVID–related supply chain disruptions and high transport and fertiliser costs also contributed to the rise.
Meals out and take away foods rose 1.4% due to rising input costs and ongoing supply and labour shortages.
Bread and cereal products rose 3.1% due to constrained global wheat supply.
Over the past twelve months, the group rose 5.9%. Meals out and take away foods (+4.7%), Fruit and vegetables (+7.3%) and Non–alcoholic beverages (+7.9%) were the main contributors.
Automotive fuel rose 4.2% due to the oil price shock caused by the Russian invasion of Ukraine, paired with ongoing easing of COVID-19 restrictions strengthening global demand.
The price of motor vehicles rose 1.2% due to supply constraints restricting global supply chains, coupled with strong domestic demand.
Furniture rose 7.0% due to increased transport and manufacturing costs. Household appliances, utensils and tools rose 4.0% due to high freight costs.
Non–durable household products rose 2.3% driven by rises in a range of products including tissues, toilet paper and paper towels, reflecting strong demand and increased freight and inputs costs.
Garments rose 4.4% due to the pass-through of high freight costs for new season stock.
Private health insurance premiums rose on average by 2.7 % from 1 April with some major insurers increasing premiums by more than 3%. However, some insurers have postponed premium increases until later in the year.
Domestic holiday travel and accommodation rose 1.7% due to strong demand.
International holiday travel and accommodation rose 19.9% due to price rises in tours and airfares. Tours of America and Europe resumed for the first time since 2019, whilst demand for flights, particularly to Europe, exceeds current capacity. Many airfares are now above pre–COVID levels due to low capacity combined with rising jet fuel prices.

The spending categories showing the largest annual price increases were as follows:

Automotive fuel 32.1%
Oils and fats 14.0%, Coffee and tea 9.3%, Breakfast cereals 8.8%, Bread 7.2%, Soft drinks 7.6%
Vegetables 14.6%, Beef 9.4%, Lamb 7.1%, Milk 5.3%
Furniture 8.5%, Floor coverings 6.9%, Home maintenance 5.9%, Cleaning products 8.0%
Domestic travel and accommodation 7.8%

Details for the various updated budgets follow.

Table 1: Budgets for various households and living standards for those aged around 65 (June quarter 2022, national)

Household type	Single Modest	Couple Modest	Single Comfortable	Couple Comfortable
Housing – ongoing only	$106.31	$119.39	$124.95	$130.38
Energy	$33.96	$45.61	$43.02	$53.35
Food	$100.78	$186.85	$130.30	$226.48
Clothing	$20.90	$39.72	$27.92	$51.99
Household goods and services	$36.58	$42.88	$81.25	$100.04
Health	$53.44	$103.26	$109.38	$204.93
Transport	$104.42	$111.05	$170.74	$184.76
Leisure	$101.78	$159.80	$197.97	$297.45
Communications	$17.74	$19.98	$22.18	$28.87
Total per week	$575.91	$828.54	$907.71	$1,278.26
Total per year	$30,063	$43,250	$47,383	$66,725

Table 2: Budgets for various households and living standards for those aged around 85 (June quarter 2022, national)

Household type	Single Modest	Couple Modest	Single Comfortable	Couple Comfortable
Housing – ongoing only	$106.31	$119.39	$124.95	$130.38
Energy	$33.96	$45.61	$43.02	$53.35
Food	$100.78	$186.85	$130.30	$226.48
Clothing	$20.90	$39.72	$27.92	$51.99
Household goods and services	$54.05	$77.43	$159.86	$191.49
Health	$92.87	$129.72	$153.64	$242.31
Transport	$39.09	$48.86	$43.98	$53.75
Leisure	$66.00	$94.66	$136.99	$192.03
Communications	$17.74	$19.98	$22.18	$28.87
Total per week	$531.69	$762.21	$842.84	$1,170.64
Total per year	$27,754	$39,788	$43,996	$61,108

The figures in each case assume that the retiree/s own their own home and relate to expenditure by the household. This can be greater than household income after income tax where there is a drawdown on capital over the period of retirement. All calculations are weekly, unless otherwise stated. Annual figure is 52.2 times the weekly figure.

For further information, please contact:
ASFA Media team, 0451 949 300

About the ASFA Retirement Standard

Since 2004 the ASFA Retirement Standard has served as a retirement companion for Australians, providing a reliable retirement savings guide by benchmarking the annual budget needed to fund either a comfortable or modest standard of living in the post-work years. It is updated quarterly to reflect inflation, reviewed regularly to reflect changes in lifestyle, and provides detailed budgets of what single people and couples would need to spend to support their chosen lifestyle.

More information

Costs and summary figures can be accessed via the ASFA website. Australians can find out more about superannuation on the independent Super Guru website.

Acknowledgement of Country

We want to respectfully acknowledge the Traditional Owners and Custodians of these lands, seas, and waters throughout Australia. We pay our respects to Elders both past and present. We acknowledge the history, the resilience and the continual contributions of Aboriginal and Torres Strait Islander peoples of their Country.

ABN 29 002 786 290

Derek Thompson

Via live link

Best Selling Author, Podcast Host of 'Plain English'

Sessions

Keynote 8 – Navigating the energy transition: opportunities, investor strategies and policy needs

Few speakers can match Derek Thompson‘s ability to synthesize mega-trends in society, labor, economics, technology, and politics. Put another way: Derek trawls the data sets and does the forecasting and deep reporting necessary to help us better understand how we live, how we vote, how we spend, and how we work.

In his paradigm-shifting #1 New York Times bestseller, Abundance (co-written with Ezra Klein), this award-winning journalist reveals how our policies and culture have pushed us into a world of scarcity (not enough housing, workers, or progress)—and offers a radical new path towards a world where housing is affordable, energy is plentiful, and innovation flourishes across industries.

He shares a compelling vision of a future where we have more than enough for everybody, and a practical, actionable roadmap for how to get there. It starts with taking more risks, building more expansively, and recognizing that we all have the power to create a world of abundance. “Everything’s utopian until it’s reality,” he says.

Carmen Beverley-Smith

Executive Director - Superannuation, Life & Private Health Insurance, APRA

Sessions

Keynote 8 – Navigating the energy transition: opportunities, investor strategies and policy needs

Carmen joined APRA in March 2023 and holds the role of Executive Director, Life and Private Health Insurance and Superannuation. 

She has had an esteemed career in financial services, spanning over 25 years. She has held diverse leadership roles at Westpac and Commonwealth Bank of Australia, including across risk, transformation and change, product and portfolio development, and sales and service.

Prior to joining APRA, she held the role of General Manager, Risk Transformation Delivery Integration at Westpac. This involved leading the group-wide implementation of a suite of solutions to uplift risk management capability and develop data, analytics and reporting.

Carmen leads with a values-driven approach and a particular interest in developing and mentoring talent.

She holds a Bachelor of Commerce and Accounting, is a certified Chartered Accountant and a Graduate of the Australian Institute of Company Directors.

Amy C. Edmondson

Novartis Professor of Leadership and Management, Harvard Business School

Sessions

Keynote 8 – Navigating the energy transition: opportunities, investor strategies and policy needs

Amy C. Edmondson is the Novartis Professor of Leadership and Management at the Harvard Business School, a chair established to support the study of human interactions that lead to the creation of successful enterprises that contribute to the betterment of society.

Edmondson has been recognized by the biannual Thinkers50 global ranking of management thinkers since 2011, and most recently was ranked #1 in 2021 and 2023; she also received that organization’s Breakthrough Idea Award in 2019, and Talent Award in 2017.  She studies teaming, psychological safety, and organisational learning, and her articles have been published in numerous academic and management outlets, including Administrative Science Quarterly, Academy of Management Journal, Harvard Business Review and California Management Review. Her 2019 book, The Fearless Organization: Creating Psychological Safety in the Workplace for Learning, Innovation and Growth (Wiley), has been translated into 15 languages. Her prior books – Teaming: How organizations learn, innovate and compete in the knowledge economy (Jossey-Bass, 2012), Teaming to Innovate (Jossey-Bass, 2013) and Extreme Teaming (Emerald, 2017) – explore teamwork in dynamic organisational environments. In Building the future: Big teaming for audacious innovation (Berrett-Koehler, 2016), she examines the challenges and opportunities of teaming across industries to build smart cities. 

Edmondson’s latest book, Right Kind of Wrong (Atria), builds on her prior work on psychological safety and teaming to provide a framework for thinking about, discussing, and practicing the science of failing well. First published in the US and the UK in September, 2023, the book is due to be translated into 24 additional languages, and was selected for the Financial Times and Schroders Best Business Book of the Year award.

Before her academic career, she was Director of Research at Pecos River Learning Centers, where she worked on transformational change in large companies. In the early 1980s, she worked as Chief Engineer for architect/inventor Buckminster Fuller, and her book A Fuller Explanation: The Synergetic Geometry of R. Buckminster Fuller (Birkauser Boston, 1987) clarifies Fuller’s mathematical contributions for a non-technical audience. Edmondson received her PhD in organisational behavior, AM in psychology, and AB in engineering and design from Harvard University.

Daniel Mulino MP

Assistant Treasurer and Minister for Financial Services

Sessions

Keynote 8 – Navigating the energy transition: opportunities, investor strategies and policy needs

Born in Brindisi, Italy, Daniel was a young child when he moved with his family to Australia. He grew up in Canberra and completed his first degrees – arts and law – at the ANU. He then completed a Master of Economics (University of Sydney) and a PhD in economics from Yale.

He lectured at Monash University, was an economic adviser in the Gillard government and was a Victorian MP from 2014 to 2018. As Parliamentary Secretary to the Treasurer of Victoria, Daniel helped deliver major infrastructure projects and developed innovative financing structures for community projects.

In 2018 he was preselected for the new federal seat of Fraser and became its first MP at the 2019 election, re-elected in 2022 and 2025. From 2022 to 2025, Daniel was chair of the House of Representatives’ Standing Economics Committee in which he chaired inquiries; economic dynamism, competition and business formation and insurers’ responses to 2022 major floods claims.

In 2025, he became the Assistant Treasurer and Minister for Financial Services.

In August 2022, Daniel published ‘Safety Net: The Future of Welfare in Australia’, which aims to explore the ways in which an insurance approach can improve the effectiveness of government service delivery.