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NewsThe Bills That Are Busting Our Budgets
The Bills That Are Busting Our Budgets

The Bills That Are Busting Our Budgets

Tags: Cost of Living
Last updated by Someone on

Most over-50s in Australia are facing constant strain on their budgets, with our new cost of living survey revealing health insurance is the household bill causing the most pain, shortly followed by electricity. 

The FiftyUp Club’s Annual Cost of Living Survey has now had almost 5000 responses and reveals that;

  • 66% find the cost of living ‘very difficult’ or ‘quite difficult’,
  • Health insurance is the most stressful bill of all (39%), followed by
  • Electricity, causing the second-most hip-pocket pain (27%), and
  • 25% are cutting back on basics such as food, heating and electricity.

 

Click here to see the Club’s special offers on Health Insurance & Electricity

Little wonder that this week the Association of Superannuation Funds of Australia estimated couples now need 26% more for a comfortable retirement than we did 11 years ago – thanks to the rising cost of living.

ASFA CEO Dr Martin Fahy told us this week on the Daily Drive show that significant hikes in the cost of power, health care, food and rates over the past 10 years have driven increases in the amounts needed to enjoy an even modest retirement.

ASFA has tracked the rise and fall of household items every 3 months since 2006 and they’ve found some interesting results…

  • The modest level for a single person increased by 33 per cent, while the single comfortable budget rose by 23 per cent.
  • The budget for a couple at the modest level increased by 36 per cent and at the comfortable level by around 26 per cent.
  • Electricity costs increased by 124 per cent, health costs by 60 per cent, property rates and charges by 83 per cent and food costs by 24 per cent.
  • The price of clothing fell by a total of three per cent over the period with an eight per cent fall in the cost of communications (including telephone and mobile phone charges).
  • The cost of international holidays rose by a relatively modest 16 per cent over the period.
  • Over the more than 10 year period, the maximum Age Pension increased in real terms by 70 per cent for a single person and 54 per cent for a couple, from a starting base far too close to the poverty level.
  • The Age Pension is adjusted by what is the greater of the increase in average wages or the CPI. During the period, average earnings rose by 43 per cent.
  • Other price increases of interest included: tobacco up by 178 per cent; wine up by only six per cent, but beer up 45 per cent; rents up 51 per cent; postal services up 45 per cent; vet fees up 49 per cent; and, insurance costs up 72 per cent.

Dr Fahy said both budgets assume retirees own their own home outright and are relatively healthy.

The ASFA RS March quarter figures indicate couples aged around 65 living a comfortable retirement need to spend $59,971 per year and singles $43,665.

 

Any advice given is general in nature and may not be right for you. If in doubt about the appropriateness of the advice, given your own objectives, financial situation and needs, you should seek personal advice 

 

https://www.superannuation.asn.au/media/media-releases/2017/media-release-29-may-2017

 

 

 

Originally posted on .

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John
John from NSW commented:

I can save more on electricity through AGL withn far less hassle dealing with Click who I was with in Queensland. The operate totally online which is time consuming , frustrating and difficult for some senior Aussies. HCF is a good offer however I was with them already and have been since I started work at 18 years, As for the cost of living , our official inflation rate is misleading and deceptive. As is our Unemployment rate . ! hours paid work a fortnight is NOT employment ,,, Do not believe politicans or taxpayer funded bureaucrats of any stripe. 

Joanne
Joanne from VIC commented:

As from the 1st July our Feed in Tariff is going UP to 11.3cent, from 5cents. I suppose that is a bit of something, it is only for 12mths. who knows what is going to happen then. Maybe from the 1st July our electricity goes up, I don't know. Thank god we get free wood to keep the house warm. 

Sue
Sue from NSW commented:

Useful,interesting info.Thanks,sue 

margaret
margaret from NSW commented:

Honestly, the 'club' has not at any time mentioned the one 'bill' that for many is the very foundation of their financial problems. Has not mentioned the very thing that thing that turns ordinary living cost from manageable to unmanageable, that means things such as myself, and there are many such as I, can have no interest in car, health, content, or travel insurance, or other bits and pieces because of the unmentioned, because of the elephant in our life's room. RENT For so many, after rent and the bare essentials, there is little left for life's joys or conveniences and the endless hopelessness continues fortnight after fortnight with the only relief to be anticipated; death. How long must we wait for this to become a topic of discussion? Allow me to guess "Until the Twelfth of Never and and that's a Long, Long Time". 

Someone
Someone from NSW replied to margaret:

Thanks for your comment Margaret. We have discussed the issue of affordable housing in past newsletters and on our Daily Drive Radio show. I wish there was something we could do here but if you're in the private rental market, rent is driven by the market, not by a company or government. We'll continue to discuss these issues though and we appreciate your feedback... 

margaret
margaret from NSW commented:

Thank you for your reply. I do think government has a hand in this. Directly and indirectly this is influenced by not one or two things, but is a combination of many things. Unfortunately we have governments of both persuasions which simply allow many situations to develop until they are difficult to rectify. Housing is only one of many areas where this has occurred. Unfortunately this is an areas that influences every aspect of our lives, from health physical and mental, family stability, ability to educate, crime and so on. Whether this is due to, do not care, putting off until a tomorrow that does not come, or simply because there is some advantage to their careers, finances or those to whom they feel beholden, or other reasons is difficult to pin down. Perhaps it is a combination of a few of these. I do know that there are those of us rarely get mentioned and when talking about affordable housing. Mention those in teaching, nursing, policing etc. all worthy people and all of whom are earning two or three times more than those who are really struggling By the way, who employs these unfortunate teachers nurses and police. Mmmmm... Suggestions such as "Get a better job" is simply moving deck chairs on the employment Titanic. Firstly most are doing the highest paying job they are capable of obtaining, and secondly, imagine getting to your favorite coffee shop and finding it and the 80% of other cafes are closed because their staff are off training to be brain surgeons and dentists, Then you get to the supermarket, the shelves are almost empty and there is only one cashier because 10,521 low paid retail workers have left their posts and gone to head office to become company directors. Of course I'm being silly, however it is hard to hold down a high paying employment without all the 'little' people who provide food, clothing, transport and all the bits and pieces taken for granted. We need a housing plan for all. If you have not been there you simply have no idea. 

Jennifer
Jennifer from QLD commented:

I wish there was a cheaper electricity supplier in Kingaroy (regional areas) As there is no competion in these areas the electricity companies are capitalizing and in turn ripping customers off. To my knowledge there are only 3 that service my area and are all just as dear as each other. Therefore there is no reason to switch. 

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