Media Release

Overall inflation rate might be low, but retirees facing steep increases for basic items

8 August 2019

Overall inflation rate might be low, but retirees facing steep increases for basic items

The ASFA Retirement Standard June quarter 2019 figures indicate that couples aged around 65 living a comfortable retirement need to spend $61,522 per year and singles $43,601, up 0.8 per cent for each on the previous quarter. At the modest level there was an 0.6 per cent increase for singles and a 0.5 per cent increase for couples.

These various changes are more or less in line with the All groups CPI 0.6 per cent increase between the March and June quarters.

Over the year to the June quarter 2019 costs were up around 1.5 per cent for couples at both the comfortable and modest levels, compared to the 1.6 per cent increase in the All Groups CPI. This equates to couples needing to spend $918 more a year, and for singles the amount is $648.

Budgets for older retirees rose from the previous quarter by around 0.7 per cent at the comfortable level and by 0.5 per cent at the modest level.

“While the increase in the headline rate of the CPI might not look large, retirees have been facing significant increases in the price of many necessities of life” explained Dr Martin Fahy, chief executive officer, Association of Superannuation Funds of Australia.

“The drought has impacted on the prices of a range of food, the cost of private health insurance continues to grow at around twice the general rate of inflation, and petrol prices are up.

“Many retirees would have welcomed the recent decision to decrease the deeming rate in the asset test for the Age Pension but at the same time they have been facing increased costs of living and lower returns from investments, such as term deposits.”

“Having sufficient savings in superannuation to support the lifestyle Australians want and deserve in retirement is an imperative. Moving to 12 per cent for the Superannuation Guarantee is a necessity for those not yet retired.”

The costs for retirees that increased substantially over the last 12 months are:

  • Price of bread up by 4.8 per cent
  • Price of beef up by 6.0 per cent and lamb up by 13.5
  • Price of milk up by 2.9 per cent
  • Price of fruit up by 4.9 per cent
  • Price of vegetables up by 6.2 per cent
  • Price of beer up by 2.5 per cent
  • Property rates up by 2.3 per cent
  • Price of hairdressing up by 2.9 per cent
  • Price of private health insurance up by 3.25 per cent on average
  • Price of dental services up by 2.3 per cent
  • Price of domestic travel up by 3.5 per cent and price of international travel by 4.1 per cent

The most significant price increases in the June quarter were automotive fuel (10.2 per cent), medical and hospital service (2.6 per cent) and international holiday, travel and accommodation (2.7 per cent).

Table 1: Budgets for various households and living standards for those aged around 65 (June quarter 2019, national)

Household type Single Modest Couple Modest Single Comfortable Couple Comfortable
Housing – ongoing only $99.58 $111.92 $116.66 $121.94
Energy $36.95 $49.62 $46.81 $58.05
Food $90.75 $168.25 $117.34 $203.94
Clothing $20.40 $38.78 $27.25 $50.75
Household goods and services $33.31 $39.15 $73.23 $90.20
Health $49.71 $95.91 $102.00 $190.94
Transport $90.01 $96.12 $146.92 $159.36
Leisure $93.48 $146.57 $181.75 $273.06
Communications $18.64 $21.00 $23.31 $30.34
Total per week $532.84 $767.32 $835.26 $1,178.59
Total per year $27,814 $40,054 $43,601 $61,522

Table 2: Budgets for various households and living standards for those aged around 85 (June quarter 2019, national)

Household type Single Modest Couple Modest Single Comfortable Couple Comfortable
Housing – ongoing only $99.58 $111.92 $116.66 $121.94
Energy $36.95 $49.62 $46.81 $58.05
Food $90.75 $168.25 $117.34 $203.94
Clothing $20.40 $38.78 $27.25 $50.75
Household goods and services $51.13 $73.28 $149.73 $179.41
Health $85.63 $120.00 $142.31 $224.99
Transport $40.10 $50.12 $45.11 $55.13
Leisure $61.00 $87.25 $125.37 $176.54
Communications $18.64 $21.00 $23.31 $30.34
Total per week $504.17 $720.22 $793.88 $1,101.09
Total per year $26,318 $37,595 $41,441 $57,477

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.

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.

For further information, please contact:

Mia Kwok, 0451 949 300.

About ASFA

ASFA is the peak policy, research and advocacy body for Australia’s superannuation industry. It is a not-for-profit, sector-neutral, and non-party political, national organisation. ASFA’s mission is to continuously improve the superannuation system, so all Australians can enjoy a comfortable and dignified retirement.

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

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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.