Spending Patterns in Retirement

The Australian Institute of Superannuation Trustees has released a report into the spending patterns of retirees. Interesting findings from the report are as follows:

  • About 80% of retirees aged 65 to 85 who own their home reported expenditure below a ‘modest’ standard ($23,797 for singles and $34,226 for couples);
  • The current retired generation is the wealthiest in Australian history, with household wealth and income increasing at each successive survey;
  • Today’s retirees are spending more money compared to retirees of similar age surveyed 8 years prior;
  • Self-funded or partly self-funded retirees enjoy a higher standard of living compared to those who rely on the Age Pension. The median expenditure for self-funded retirees was $30,000, yet only $19,000 for those reliant on the Age Pension; and
  • Retirees who do not own their home or live alone have a greater risk of experiencing financial hardship.

For further assistance or information, please don’t hesitate to contact MGR Accountants on 03 5443 8888 or email mgr@mgr.com.au