New data showing the price of a takeaway coffee could reach $34 in the future highlights the need for Australians to take action to help meet rising costs in their retirement.
Research commissioned as part of MLC’s ‘Save Retirement’ campaign has shown that the cost of a takeaway coffee could rise to $6.80 in 20 years, $9.40 in 30 years and $34 in 70 years.
As part of the campaign, MLC is hosting a Future Coffee Cart at Sydney’s Central Station today, providing free coffee to commuters to raise awareness of how Australians need to take action to meet rising costs in their retirement.
One in two Australians are currently set to outlive their retirement savings by a decade.
MLC General Manager of Client Management, Lara Bourguignon said: “By putting a future price on an everyday item like a cup of coffee, we want to get Australians thinking about their own superannuation and its ability to cover the rising costs of living in retirement.”
“Inflation is one of the biggest threats to a comfortable retirement, but it can be managed with the right plan.
“For example, an electricity bill of $100 in 1973 would cost nearly $300 today, and could cost more than $1,000 in 15 years time should inflation continue rising at the same rate.
“To help address this, retirement plans should take into consideration how your savings will grow with inflation, manage sequencing risk and remain tax efficient.
“Choosing an investment strategy that targets above inflation returns and seeking sound financial advice to help you plan for the future will help ensure Australians are prepared for rising costs in retirement.”
For more information visit www.saveretirement.mlc.com.au