Retirees 'must save more to fund their lifestyle'

Aussies who are approaching retirement must save more money in order to fund their lifestyle once their career comes to an end.

New figures compiled by the Association of Superannuation Funds of Australia (ASFA) have shown that workers will have no choice but to store more cash away in their savings accounts because of the rising cost of living.

Although food prices have fallen by 3.2 per cent over the last 12 months, this has been offset by a 3.6 per cent rise in health costs and a huge 10.6 per cent increase in the average electricity bill.

A recent study conducted by Mercer indicated that cities like Sydney and Melbourne are among the most expensive places to live in the world and this is having a particularly bad effect on retirees.

The ASFA research discovered that Aussies need $55,213 a year in order to enjoy a "comfortable" lifestyle, while a "modest" lifestyle will now cost $31,760.

This represented a rise of one and 1.1 per cent respectively when compared to figures from 2011.

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