ASFA blames electricity prices on cost of living

Association of Superannuation Funds of Australia (ASFA) has come out against rising electricity prices, saying they are making it more and more difficult for Australians to retire comfortably.

ASFA found that in the September quarter, the amount it cost to achieve such a retirement would be $56,236, which is up 1.7 per cent from the previous year. A modest life style of $32,511 was a 2.3 per cent rise from last year.

The report said electricity prices were a major factor in the rising in cost of living.

"There was a 15.3 per cent increase in the price of electricity.

"The Australian Bureau of Statistics notes that many residential utility providers have cited investment in infrastructure and the introduction of carbon pricing as some of the influences driving price increases in the September quarter 2012," it read.

Retirees generally own their own homes so there is some drop in the cost of living, along with the fact that they don't spend much on education, according to the report.

Large increases to food, health, transportation and recreation are other factors, but the ASFA said that these rises would dissipate over time.

If you think there might be a better energy deal out there for you, talk to a comparison and switching service and let them track you down a better rate.

Posted by Charlie Moore