14th Apr 2017

Retirement Affordability Index March 2017

Retirement Affordability Index March 2017

Retirement Affordability Index

For far too long the many years in the life stage known as retirement has been treated as a ‘dead-end’ and the people who are in retirement as a big, beige homogenous blob, who demand a one-size-fits-all solution. 

Having written and published content for and about retirees for the past 17 years, the team at YourLifeChoices has become exceedingly frustrated by the inaccuracies inherent in this broad brush approach, particularly when related to projections for retirement income. The glaring omission to date has been the assumption that all retirees live in a home with no mortgage.

YourLifeChoices, in partnership with The Australia Institute, is excited to announce the inaugural Retirement Affordability Index™ – the only report that investigates the real cost of living in retirement for all retirement households in Australia.

The Retirement Affordability Index™ will now help you consider which retirement tribe best matches your situation, so you can compare your spending.

To help calculate the weekly, monthly and annual expenditure for each retirement tribe and to keep you abreast of changes in the cost of living, the Retirement Affordability Index™ will be updated every three months, following the release of CPI data.

And, in this inaugural issue of the Retirement Affordability Index™, we provide updates on increases to the Age Pension age, new pension rates, new income and asset thresholds for part Age Pensions and the changes to the Energy Supplement eligibility, as well as an investigation into the true value of a concession card.

You can also download a copy in PDF format.


To make a comment, please register or login
11th Apr 2017
I found this index to be totally flawed in exactly the same way as the original model. It assumes one person lives for half the price of two. The assumption that your household ownership and maintenance costs halve is patently absurd. Some costs double- for example most holidays. You don't take Rover to the vet and pay half the price and he isn't suddenly eating half a meal. You don't re-carpet half a room or pay the plumber on a per capita basis. etc, etc.
Old Geezer
18th Apr 2017
actually two people can live on not much more than one. It costs the same for two as one for caravan park sites, motels etc. Also it doesn't cost more for 2 people in a car rather than one. Also if you ask for a spare plate you can share a meal in most places too. Why pay for 2 meals when you both eat half anyway?
18th Apr 2017
Yep. ...and where does anyone find $1.4m in a single superfund? Maybe the financial advisers that charge $300 an hour have forgotten what everyone else earns!
Kaye Fallick
18th Apr 2017
Hi Teddy, Many thanks for your feedback. the index is based on actual household expenditure as measured by the Australian Bureau of statistics, so we do believe that these projections are correct for the different tribes, as there are no assumptions, just data on what people actually spend. Of course individuals and individual couples will vary from the average, but we do hope we have helped shine more light on the statistics for most retirees. warmest Kaye
18th Apr 2017
I assume that everybody is different. Collecting data like this is still helpful, however. I used the blank budget to update ours. I contacted our home insurers to give a loyalty discount and they obliged as they always do and took off a further $5 per month. I do my own research for providers of electricity and gas and seek the very best deal pitting one against the other. I do the same for private health cover. Having a budget is so important and revisiting it regularly and actively insisting on good deals saves hundreds per year. Some things on the provided budget were cheaper for us. Two cannot live as cheaply as one but maybe not double. Each person eats and uses water and power. Men eat a lot more than women usually. It is still good to collect all that information as it gives a good source to work from and compare etc.
18th Apr 2017
When it comes to single people I think women can live a lot more frugally than men. Boys toys are very expensive.
18th Apr 2017
So depressing reading this article. We need something realistic and optimistic to look forward to. Anything less than $40K per year is poverty so I don't know where the author found the word affluent to describe $34K p.a.

Join YOURLifeChoices, it’s free

  • Receive our daily enewsletter
  • Enter competitions
  • Comment on articles