“The stereotype of the digitally challenged senior is outdated. Today’s retirees are as connected as anyone, and this is reflected in their household budgets,” said ASFA CEO Mary Delahunty.

“Someone retiring in 2025 likely had their first mobile in their 30s, a Hotmail account in their early 40s, a BlackBerry device in their 40s, and their first iPhone in their early 50s. They were using digital tech before their children.”

Beyond tech, retirees are being squeezed by price hikes in essentials:

Private health insurance: climbed 3.7 per cent — the steepest quarterly rise since 2018.

Electricity: surged another 8.1 per cent this quarter, on top of last quarter’s 16.3 per cent spike.

Fruit and vegetables: lifted by 4.3 per cent.

Clothing and footwear: edged higher by 2.6 per cent.

International holidays: jumped 4.7 per cent, driven by Europe’s peak tourist season.

There was some relief at the petrol pump, with fuel costs falling 3.4 per cent, while insurance overall dropped 0.5 per cent—its first decline since 2019.

With so many essential costs rising, stretching superannuation further has never been more important.

“We continue to see steep cost-of-living increases for retirees. Superannuation matters more than ever in delivering the dignified retirement Australians deserve,” Delahunty said.

Financial experts agree the key is having a clear financial plan. Sydney-based Wealth Coach Andrew Woodward from The Investor’s Way said the first step is simple: know what’s coming in and what’s going out.

“Knowing how much is coming in should be relatively straightforward, it will either be in the form of a pension, investment income, superannuation or a combination of all,” he said.

It’s recommended that retirees review their expenses regularly and keep on top of what they have spent in the previous 12 months.

“Once you review what you were spending, you can then anticipate what you need to spend in the coming 12 months,” Woodward advises.

“Anticipating what you need to spend in the coming 12 months, and beyond, requires making some judgements on price increases and your needs, like potentially additional medical expense, and of course the impact of inflation on almost everything.

“Once you have an understanding of the incoming and outgoing of your money, put it into a plan and stick to it.”

Founder and CEO of Stockspot, Chris Brycki, added that retirees can approach budgeting in different ways:

Line-item budget: Track every expense by category, such as housing, food, travel, and entertainment.

Zero-based budget: Allocate every dollar of income to a specific expense or savings goal, leaving nothing unassigned.

Percentage-based budget: Dedicate set percentages of income to categories, such as 25 per cent to housing, 12 per cent per cent to food, and 10 per cent to travel.

Whatever method is chosen, the message is clear: careful planning is now as essential to retirement as paying the power bill or keeping the Wi-Fi switched on.

Read more: Smart and simple tips to make the most of your Age Pension

IMPORTANT LEGAL INFO This article is of a general nature and FYI only, because it doesn’t take into account your financial or legal situation, objectives or needs. That means it’s not financial product or legal advice and shouldn’t be relied upon as if it is. Before making a financial or legal decision, you should work out if the info is appropriate for your situation and get independent, licensed financial services or legal advice.