Managing your purchasing power in retirement

From the weekly grocery shop to insurance premiums and fuel prices, many Australians are feeling the impact of rising living costs. For a lot of people, it’s not just about what things cost today, it’s about whether their money will still stretch far enough in the years ahead.

This question comes up often when members think about retirement. Not just how much they have, but whether it will keep pace with everyday expenses over time and support the lifestyle they want. 

That’s why inflation and cost of living matter so much when it comes to your retirement.

Rising living costs and retirement benchmarks

The ASFA Retirement Standard is often used as a guide to help Australians understand what retirement might cost in today’s dollars. Recent updates show that the annual income needed for a comfortable retirement have increased — largely reflecting higher prices across essentials like food, healthcare, utilities and insurance.

For homeowners aged 65-84, ASFA estimates that a comfortable retirement¹ requires an annual income of around: 

• $56,166 p.a. for singles, and
• $78,988 p.a. for couples

For many members, figures like these can prompt questions such as ‘Do I have enough’ or ‘Will this be enough if costs keep rising?’

It’s important to remember these are benchmarks. Retirement isn’t one size fits all, and what you need will depend on your lifestyle, health, housing and income sources. Used the right way, benchmarks are a reference point not a judgement.

Why inflation matters — beyond the numbers

Inflation is the rise in the cost of everyday goods and services over time. When prices go up, the buying power of each dollar falls, meaning the same amount of money doesn’t go as far as it once did.

That’s why inflation matters in three key ways:

• It affects spending power
  Rising prices can quietly erode what savings are worth in real terms.
• It shapes how long savings might last
  Higher living costs can mean needing more income over time to maintain the same lifestyle.
• It shifts how people think about retirement confidence
  For many members, confidence isn’t just about market performance, it’s about affordability and reliability.

How CSC invests with inflation in mind

There is always a risk that inflation may exceed the return on an investment, particularly over shorter periods. CSC’s investment governance focuses on managing risk and is driven by our primary investment objective: to maximise long term real returns (returns above inflation) within strictly defined risk limits.

What this means in practice is focusing on resilience over time. CSC constructs each investment option by combining different assets and considering how they work together, including:

• whether an asset has the potential to deliver returns above inflation
• how it contributes to diversification and stability
• how it supports sustainable income over market cycles

This long term approach reflects what many members tell us matters most — not chasing short term gains but having confidence that their savings are working consistently behind the scenes.

Confidence comes from clarity

When people feel uncertain about retirement, it’s often less about lack of interest and more about lack of clarity. Members frequently want to understand:

• what their current balance could mean in terms of future income
• how rising costs might affect their lifestyle over time
• what practical steps could help them feel more confident

That’s why CSC focuses on clear information and simple tools to help members make sense of how today’s decisions can support tomorrow’s income.

What you can do next

Inflation and cost of living may be outside individual control, but there are steps you can take to feel more informed and confident.

View and manage your account online 

CSC Navigator allows you to view and manage your account online. Check your balance, payment frequency and amount, investment choice and more.

Login to CSC Navigator

Explore your retirement lifestyle and income target

Take a few minutes to explore your target retirement income based on things like how often you like to dine out, the type of travel you’d like to experience and your level of health cover.

Retirement Lifestyle Target tool

Boost your CSCri balance

Consider boosting the balance in your CSCri account. 

Find out how

Get the right support

For many members, a conversation makes all the difference. CSCri members can access CSC Super and Retirement Specialists at no additional cost, for help understanding retirement and your investment options.

Looking ahead

Rising living costs and inflation can make retirement planning feel complex. CSC provides information, tools and investment options to help members understand and manage their retirement income needs over time.