Retiree spending habits under the microscope
Nobby Kleinman is an award-winning ex financial planner who developed Money Rules, a personal money management program which anyone can use.
12 years of data from 8000 households has found that Australian retirees have only modest income requirements irrespective of income.
Research conducted by Household, Income and Labour Dynamics (HILDA) found 80 per cent of retired households were spending just $23,797 for singles and $43,226 for couple yearly.
Monash Business School’s Australian centre of Financial Studies conducted the study which was commissioned by the Australian Institute of Superannuation Trustees (AIST).
Spending levels depended largely on where retirees live with Sydney being the most expensive on about $44,000 annually, as compared to $34,000 in Melbourne and $25,000 in Tasmania.
Most retirees have modest expenditure and a high level of financial satisfaction. However, low income retired households were struggling and appeared to be taking on debt or selling assets to meet living expenses, while the very wealthy had high disposable income.
More information on the cost of aged care and leisure is one area the report highlighted as needing more information in order to complete the picture on retirees behaviours.
Household wealth and income continued to rise with each successive HILDA survey with the current retired generation being the wealthiest ever in Australian history. They are also spending more than previous retirees of similar age.
To view the whole report, follow this link.
What do you make of this research? Do you think it shines a light on the money needs of senior Australians? Share your thoughts in the comments section.
Learn how to master your money, create your wealth and retire early, just on your current income. Find out more in Nobby Kleinman’s latest book Spend To Grow Rich.
Related links:
The secret, simple money saving trick to cut out splurging
The gap between retirement dreams and savings reality
How Aussies compare to retirees from other countries