19th Sep 2018
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Your postcode significantly affects the cost of retirement
Your postcode significantly affects the cost of retirement

Your postcode can significantly impact the cost of living in retirement, but many super funds ignore this, offering one-size-fits-all recommendations on super that may ruin your post-work years.

According to financial consultancy Milliman’s Retirement Expectations and Spending Profiles (ESP) report, which analysed 300,000-plus retirees’ real-world annual expenditure, superannuation funds don’t personally figure on the costs required for retirees to live in some areas.

“Where the median 65-69-year-old retiree lives can affect their annual spend by more than $10,000,” says Milliman.

The report revealed that the Stonnington region in Melbourne is home to Australia’s biggest spending retirees, with the average annual household expenditure required to live there sitting at around $56,711 – two-thirds higher than the national average of $33,943.

A retirement in the Caboolture region in Queensland could almost be entirely funded by the Age Pension. It’s home to the lowest spending retirees, who have an average annual expenditure of around $26,286 a year – 26 per cent lower than the national average.

And while Stonnington is home to big spending couples, data shows that the average super balance needed to sustain their spending habits would be just over $403,000 which is still lower than industry forecasts. Most of this, however, is spent on leisure or discretionary items.

Caboolture retirees spend 60 per cent of their annual budget on essential goods and services whereas Stonnington retirees spend around 44 per cent. Also, Caboolture retirees spend 19 per cent of their total expenditure on food, nearly twice as much as Stonnington retirees (10 per cent).

These results question whether super industry recommendations accurately reflect the reality of retirement costs in some areas. Super fund members aren’t receiving personally tailored advice to suit where they live – or intend to retire – that might stretch their retirement savings further.

The Milliman report highlighted the problems of using the Consumer Price Index as a benchmark, because falling prices of some discretionary goods and services could distort the true impact of non-discretionary costs, such as food, electricity and gas, which are rising much faster than inflation.

Read more at www.financialstandard.com.au

Do you think you’d be better off living somewhere else? Did your super fund make accurate recommendations based on where you live?

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    COMMENTS

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    Old Geezer
    19th Sep 2018
    11:21am
    Does welfare (old age pension) take into account your postcode?
    ph
    19th Sep 2018
    2:21pm
    Stop it OG. We all know old age pension is an entitlement, not welfare. So for you own sake, so you stop making a fool of yourself, just stop.
    Cowboy Jim
    19th Sep 2018
    5:04pm
    ph - you will never stop OG. He has a problem with the age pension because he probably misses out and wants to call it welfare. Just let him be, he will be in his coffin singing: I Did It MY Way.
    Old Geezer
    19th Sep 2018
    5:11pm
    Well the pension is welfare there are no buts about it.
    ex PS
    21st Sep 2018
    9:50am
    I am confused O.G, are we talking about welfare or the Old Age Pension, they are two entirely different things. Maybe you should take a step back and think about what you actually want to discuss, one or the other.
    TREBOR
    19th Sep 2018
    11:21am
    Choice-mobile - that's what it's all about.... if you want the 'higher' lifestyle and 'prestige' of living in a good spot - you pay for it.

    I'm happy with the bush, thanks..... added cost of travel but hey ...
    TREBOR
    19th Sep 2018
    11:22am
    OAP is Social Security.....
    Old Geezer
    19th Sep 2018
    11:25am
    Social security is welfare.
    Nan Norma
    19th Sep 2018
    11:52am
    Its Social Security.
    Ferny
    19th Sep 2018
    11:28am
    I live in Stonnington. It’s a great place to live.
    pedro the swift
    19th Sep 2018
    11:34am
    Is the overblown pensions and allowances paid to retired politicians also welfare" or does that only apply to the general plebs?
    Old Man
    19th Sep 2018
    11:42am
    So what are people expected to do? If the area in which you live is too expensive there are a couple of choices; move to an area which is cheaper or take out a reverse mortgage to cover any shortfall. Super funds can only work on an industry averaged figure as different areas can become more popular or less popular from time to time.

    If we take this ridiculous thought to its extreme, age pensions will need to be tailored to an area. Someone living in Toorak on an age pension should be getting four times the pension of those living in disadvantaged suburbs. Further, those in disadvantaged suburbs should have their age pensions reduced because its cheaper to live there. What a lot of rubbish.

    To those who think that this is pie in the sky, Plibersek's head was all over the media this morning firstly telling the lie that there is a gender gap in pay and, secondly, announcing Labor's latest thought bubble that women on maternity leave will have money paid into their super fund. No matter who pays for this, either the employer or the government, those who stay at work will suffer. If an employer has an added cost ontheir business, prices must rise and if paid by government, taxpayer money which could be used for the benefit of all taxpayers will be unavailable.
    Old Geezer
    19th Sep 2018
    12:17pm
    People are also telling her that they will have to pay back a lot more in tax when they retire to with Labor's unfair policies as well.
    KSS
    19th Sep 2018
    1:10pm
    As long as the super payment is equal to the baby-bonus and paid instead of not as well as, then I see no reason why it should not be paid into the woman's super. Provided of course that a single man or the stay at home male in a partnership is also entitled to the same amount. Then of course remove the baby bonus for anyone unemployed (it will go into their super too).

    Again the devil will be in the detail: will this be some arbitrary amount or will it be based on the income and therefore the super the person had immediately before the baby? For how long will the super be paid? In many places women can take up to 12 months maternity leave with a further 12 months by agreement from the business. Will this super contribution continue until she decides to return to work no matter how long that is? Will it be means tested or will everyone with a baby get it? After all, even the high fliers lose salary and super when they take time out to be a primary carer!

    This is a stupid policy, ill-considered and ill-thought out. But no doubt a vote catcher from those with their hands out for 'more'.
    Anonymous
    19th Sep 2018
    1:20pm
    How stupid is Pilberseck !!!
    Can’t stand that woman
    Old Geezer
    19th Sep 2018
    1:50pm
    At least one person should be at home looking after the kids not farming them out to child care. Why have kids for someone else to raise? Any super paid during child rearing years should be split between both partners. Why should the taxpayer pay for women to retire?
    TREBOR
    19th Sep 2018
    3:21pm
    Too true, OM - this is effectively paying someone at a higher rate of pay for the same job...

    I'm sure that point would go right over Tanya's head... not in the feminist interest...

    Take twelve months off - get paid for it... and/or get paid super @ 9% - which effectively means you are being paid at a rate of 9% for the time off HIGHER than the others...

    I've done figures before that show that women are effectively receiving more per hour worked than men.

    19th Sep 2018
    1:18pm
    This is the same stupid argument OAP’s use for increasing rental assistance .
    Lump it or move !!!
    Taxpayer shouldn’t fund your lifestyle choices
    TREBOR
    19th Sep 2018
    7:22pm
    Long bow - long way off target....
    Anonymous
    19th Sep 2018
    7:25pm
    No its not.
    Unlike you, I'm always on point
    TREBOR
    20th Sep 2018
    1:12am
    Your credibility disappeared at the point of the Great Royal Commission Robbery - you know - that one that was set up to demonise Unions and Labor - and when it found no real meat to chew on - you and one other here came up with the fantasy that the result was doctored so as to preserve those very same Union and Labor people...and maybe some other shadowy characters hidden somewhere deep within the labrynth of political collusion and control by one party pretending to be two.....

    Anything to throw mud at the current Opposition - and especially to throw mud at Unions... RC come up with a clean skin and a heap of rhetoric indicating nothing - but the REAL result (ooooooooowwwh) was buried to protect people...

    Tell it to the psych nurse at lights out time....

    I won't be voting for the current Opposition in The Tag Team - but I don't see any credibility or 'being on the point' there.... the point of mental collapse perhaps.....
    TREBOR
    20th Sep 2018
    1:24am
    Let me just try to expand for you a little here:-

    Current Labor and LNP - neither want strong Unions. Strong Unions exerting power of their own undermine their basic thrust to 'bring about the correct revolution' (or evolution) to 'create a viable and egalitarian society' in which 'all will prosper'.

    The ideologues at the helm now may approach this from different directions - one from some pretence of a genuine egalitarian society byt their rules only - the other from the absolute myth of capitalist enterprise and 'trickle-down' that purportedly benefits everyone (LMFAO)... to EACH of these ideological positions - GENUINE power of the people is anathema...

    In their eyes, the people common are but cattle in the fields to be guided and disposed of at the whim of the governing power.... they - the ruling elite of either 'left' or 'right' - are the only and final arbiters of what is best for society.... the people be damned as long as they themselves prosper..

    I guess, for your learned brethren out there, that could mean I'm something of a Trotskyist - well - I never studied that kind of division between different ideologies and never have adhered to an ideology - nor those ideologies as such - I merely see what I see.

    I've warned you all about the robber barons - I've warned you all about the dire peril of a feminised Australia under current uni quadrangle sidewalk cafe Labor - ignore reality at your peril.
    TREBOR
    20th Sep 2018
    1:27am
    For your next puny attempt at a bite...

    If this be madness... Jailer - BRING ME MORE LIGHT!
    Anonymous
    20th Sep 2018
    1:44am
    Trebor , can I humbly suggest you Contact your local AA branch.

    You completely went off topic again with yet another boring self gratifying rant

    I was on point - you can’t complain about your lack of super if you have an expensive post retirement lifestyle . Just like a pensioner can’t complain about their rent if they choose to live in a blue chip suburb
    Duh !!!!
    Which part of living within your finite income don’t you understand ??????!!!
    TREBOR
    20th Sep 2018
    1:54am
    Missed the point entirely.... oh, well....

    You can't raise rental assistance for pensioners in rich areas without raising it for all equally .... that's the way our socialist system even under LNP works here ... so really it's a moot point.... and I've already addressed it elsewhere.

    On the other hand, perhaps a calculation of pension rate could be undertaken to resolve what is and what is not a genuine living allowance for all pensioners that includes costs of housing , owned or rented *.... some might benefit more via living in cheap areas... but that's their windfall....

    * some here have already raised the point that home owners have ongoing costs, too...... and perhaps they should also receive an allowance for costs.....
    Anonymous
    20th Sep 2018
    1:57am
    Rinse and repeat

    Which part of living within your finite income don’t you understand ??????!!!

    Duh !!!!!
    TREBOR
    20th Sep 2018
    1:59am
    People weren't complaining about lack of super, BTW - you missed the point - they were complaining about the inadequacy of pension........ Pension... PENSION...''What about some nice lady from Bellevue Hill who has not worked but did the 'traditional' thing, and who then finds that when her husband dies, she is left without super- since all the funds are tied up in trusts and such and she has no or little access - and she is forced onto pension while her kids romp with the trusts?

    What does SHE do for household costs? What if the house was 'owned' by a trust' and she is given her marching orders?

    What does she do when she is forced to rent a one-bedroom cold water walk-up for $600 a week - more than the pension? Does she eat dirt?

    Don't laugh - when money is involved, families can be filth.
    Anonymous
    20th Sep 2018
    2:02am
    Is that the taxpayers problem?
    So we should give her more in welfare than what is already a generous system

    Bloody hell - put that drink away and go to bed Trebor
    TREBOR
    20th Sep 2018
    2:03am
    "living within their finite income" - so suddenly the sky-rocketing cost of housing is the fault of the Pensioner?

    And the Pensioner should dig into the purse for the thousands required to move to a cheaper area far away from friends and family?

    I thought Reynhard Heidrich was killed in .. what was it... 1943 or 1944? Yet the 'intellectual Nazi' reasoning goes on - put the old bastards on the trains and send them to Ostland where Arbeit will make them Vrei!
    TREBOR
    20th Sep 2018
    2:04am
    It's not welfare - it's Social Security bought and paid for over a lifetime of contribution... do some research.

    Keep going - you might take a trick sometime....
    Anonymous
    20th Sep 2018
    2:05am
    Btw - the more genreous OAP welfare becomes the more you will get the sort of example you gave above

    It will become more of an incentive For families to arrange their affairs such that the older members maximize handouts
    TREBOR
    20th Sep 2018
    2:06am
    Really - where's Rainey to tell you that attacking those with a part pension - as the LNP did - will create a future system of all rorting so as to get benefit.....

    **pours another beer** this is easy money....
    TREBOR
    20th Sep 2018
    2:10am
    Scheme in which all get pension - but with stringent requirements that you pay tax on all benefits over and above..... it'll settle in in time.... like any necessary change, it will hurt a few who really won't be hurt while benefiting the majority ...
    TREBOR
    20th Sep 2018
    2:11am
    Bed time - I've got a reno and need to sleep a little....

    Cheers....
    Anonymous
    20th Sep 2018
    2:11am
    You just made my point ,unfortunately you’re too mentally challenged to too drunk to realize
    I’m off to dinner . Sick of talking to peasants who are unable to rise above their unfortunate surroundings
    Some people at least try, you don’t even make an effort
    TREBOR
    20th Sep 2018
    5:34pm
    Oooh - now that's what's called a slagging... dinner at 2.11 am? Hmmmmmmm.......an Offshorian preaching to Australians.... oh, well...
    Retired Knowall
    19th Sep 2018
    2:15pm
    It has NOTHING to do with where you live, it's how you live that matters.
    Live within your means.
    Old Geezer
    19th Sep 2018
    2:30pm
    My guess would be that people around me live on 3 or more times the amount I myself live on. I live in a neighbourhood of some of the most expensive houses in the area and they are either owned by professionals or retirees who have upsized to get the old age pension.
    Anonymous
    19th Sep 2018
    2:40pm
    Looks like you are surrounded by greedy rich retirees on welfare.
    Hope you tell them how disgusting there are , ripping off the taxpayer
    Old Geezer
    19th Sep 2018
    3:00pm
    They openly admit it and know they are so why bother telling them?
    TREBOR
    20th Sep 2018
    1:14am
    Create a 'dob in a rorter' line, OG - you'll catch them all...
    Anonymous
    20th Sep 2018
    1:48am
    Dob who?
    It’s all done legally thanks to the stupid system labor introduced
    Old Geezer
    20th Sep 2018
    11:17am
    I agree they have done nothing illegal.
    TREBOR
    20th Sep 2018
    5:35pm
    Simple flick of the pen and it becomes illegal....
    GrayComputing
    19th Sep 2018
    4:15pm
    A pension is not welfare.
    In a egalitarian society everybody should get the pension unconditional and without asset testing.
    Those who eared millions in their lifetime and paid proper high level taxes have funded the commonwealth pension coffers.
    So what if they get the pension too and just use it for cruises they also deserve it.
    And no this does not apply to me.
    I do not have money in the bank or credit for any cruises.
    Old Geezer
    19th Sep 2018
    5:10pm
    In Australia today the pension is welfare.
    TREBOR
    19th Sep 2018
    7:24pm
    Not as simple as that, Gray - those who made heaps might also have paid some tax, but they also got benefit from countless tax concessions along the way...

    I advocate a universal pension - but you pay tax on every earning, gifting from your own companies etc, and fringe benefit....
    TREBOR
    20th Sep 2018
    1:14am
    OG - but not tomorrow or yesterday.... oh, look - tomorrow has come....
    OnlyDaughter
    19th Sep 2018
    5:24pm
    The UK Aged Pension is available for everyone regardless of whether they are rich or poor. This is the way it should be in Australia. And as a bonus then we wouldn't have self-righteous, po-faced whiners decrying those who do rely on the Aged Pension and calling the Aged Pension welfare.
    TREBOR
    20th Sep 2018
    1:29am
    Politics of Envy - when Thatcher's writers came up with that one - they forgot that every sword is at least two edged... in this case three or four edged..... same as Tony's and Joey's 'entitlement' ... these knives cut many ways....
    JB
    19th Sep 2018
    5:29pm
    A older lady where I live went into a local shop as she had heard that the owner had been gossiping about her . She hit the nail on the head when she said “your opinion means nothing to me” then walked out . Look if someone wants to call the age pension welfare who really cares , his opinion means nothing !!! Stop taking the bait ha ha
    bobm
    19th Sep 2018
    5:29pm
    The best idea is everyone gets a pension, although it may be reduced a bit similar to NZ. If you wish to work 1 or 2 days there is not any reduction in your pension.

    The better idea you don't need Centrelink and all the hangers on. Save billions in wages for office staff, no phone problems, no investigators, no one duding the system.

    Your date of birth and citizenship is all you need. If you are not a citizen too bad, become one and get the pension.
    Still work on the system of years of how long have you worked in Australia ratio ie 20 years over the standard of a minimum of 35 years=20/35th of the full aged pension. Those who have paid into o/seas pension get a portion from that country as per the English pension.
    Not a Bludger
    19th Sep 2018
    6:12pm
    When on earth is this column’s editor going to stop reporting every rentseeking outfits’ rubbish, skewed and flawed so-called surveys and analysis(?) as factual and without any analytics at all - typical of leftie, trot so- called journos.
    Roggercat
    20th Sep 2018
    10:15am
    This article only shows what retirees spend, not the cost of living in those areas. Stonnington retirees undoubtedly have more money, hence are able to, and do spend more. Housing may be more expensive in Stonnington, but some time ago a survey found that food costs were surprisingly cheaper in wealthier areas, maybe due to the inhabitants researching prices more. Also, regarding the age pension being a right, if you go back 100 years or more, it was your responsibility (quote) 'to put aside a portion of your salary so that in your later years you wouldn't be a burden on society'. The age pension was for those who were unable for whatever reason to do that. So is it a rifgt? Perhaps it depends on the current social mores. If you are unable to work or find employment, society should be required to see that you don't starve, but if you choose not to work, socoety owes you nothing! I believe the same principle should apply to the age pension. And if, like old geezer, you have enough income not to get even a part age pension, you should be laughing all the way to the bank.
    Old Geezer
    20th Sep 2018
    11:15am
    I agree.

    However I am certainly not laughing all the way to the bank because I feel like by being a self funded retiree that all government want to do is take it from me. They should be supporting self funded retirees as they will save them over $2 million in welfare payments/ However this is not enough and they want more and more of our hard gained wealth.
    Cowboy Jim
    20th Sep 2018
    4:09pm
    Well Old Geezer - you are right! But I knew all that long ago and never wanted to be self funded. They DO have the money for Govts to take from; us poor little pensioners on cruises and overseas holidays have nothing to worry about because we spend everything we get. In my neighborhood I would be a very lonely person as a self funded retiree as everyone is at least on a part pension. And so we can all whinge together and curse all these smug self funded rich blokes that live somewhere else. Nice and neat, eh?
    Old Geezer
    20th Sep 2018
    5:48pm
    Well there certainly wont be near as many people self funded in the future the way the government is fleecing people who are. Lets hope there is enough left in the kitty in the future to pay all you bludgers on welfare because we sure aint topping it up for you lot.
    SMMM
    20th Sep 2018
    2:26pm
    Trebor,Olbaid you need to get out and do something with your lives, instead of spending it on the computor all day. Life is too short to be waffling on like you all do.
    Opinions are for everyone and you guys are rarely right.
    TREBOR
    20th Sep 2018
    5:36pm
    What a shame....
    ex PS
    21st Sep 2018
    9:59am
    Since they disagree on everything, the odds are that one or the other is right at least 50% of the time. The difference is, one uses logic and reason to make an argument, the other uses tired old political pap.
    Either way each is entertaining for entirely different reasons.
    TREBOR
    24th Sep 2018
    3:01am
    Well - partly right 50% of the time will do.... I'm not greedy and have no barrow in the market place to defend....

    Hmm ... wonder how olbie goes about his Rio shares, since Rio pays no tax and gives franked dividends which apparently also pay no tax .... wonder if that is the target of Shorten's ideas? WONDER WHY?????

    Hmmmm...... lessee now... can't 'double tax' - as if somehow the shareholder and the company are the same legal entity.... so to save any possibility of error (in the Howard Costello way of thinking) - let's ensure the ATO doesn't tax either! BewdiFUL!! Lovely work if you can get it.......

    Illogic and unreason is fine with me... I have no ego here - with a little sense of humour added ... I don't KNOW everything.... but I can think it through.... I think...
    Anonymous
    24th Sep 2018
    4:31pm
    Trebor - wrong again
    Rio pays billions in tax
    Old Geezer
    25th Sep 2018
    10:54am
    I agree I wouldn't like to get RIOs tax bill either. BHP only pays about half as much. RIO pays 30.9% tax on its revenue.
    Chooky
    23rd Sep 2018
    9:50am
    OG is a sad liberal lover. He probably supported Dutton’s bid for PM.
    Old Geezer
    25th Sep 2018
    10:48am
    OG wasn't even in the country when all that rubbish was happening so he missed the lot. The first he knew about it was when a yank told him he had a new PM.


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