Huge supermarket profits leave retirees struggling in the cost of living crisis
Last updated on 8 April 2024
The positive impact of working during retirement could be greater than you think. [Source: Shutterstock]
Key points
- Supermarket chains, such as Coles and Woolworths, are being threatened with heavy penalties as high prices have made the cost of living even harder for low-income earners and Australians on the Age Pension
- Woolworths Group and Coles Group both recently announced their half-yearly profits, with a combined total of $1,523 million dollars in profit
- Working during retirement is possible and means you may not need to rely so heavily on money from your super
With the recent news of Coles and Woolworths coming under fire for charging consumers too much for products and not passing on savings, many retirees may be thinking about how to save enough money for living costs while living on an Age Pension.
Coles and Woolworths control over 65 percent of the grocery market, according to recent information published by the Australian Council of Trade Unions.
Even with the presence of smaller supermarket chains such as Aldi, Coles Group recently announced that its half-year profit was $594 million dollars in the Coles Half-Yearly Report. Woolworths Group shared that its half-year profit was $929 million dollars in its Half Year Results Announcement.
An independent review of the Food and Grocery Code of Conduct 2023 – ’24 was published recently and is available online here.
Ensuring you have enough to spend on food and other necessities can be stressful. The amount of money you may receive on the Age Pension depends on numerous factors including income and assets of yourself and those of a partner. Changes within relationships must be declared to ensure that you are receiving the appropriate amount on your Age Pension.
According to the Department of Social Services, the pension income test is designed to encourage pensioners to supplement their pension with additional private income. A pensioner can receive an amount of private income before their pension rate starts to reduce.
This is known as the ‘income-free area’ which, from July 1, 2023, is $204 for single-rate pensioners and $360 for couples — combined. For each dollar of income above the income-free area, the single pension is reduced by 50 cents.
Accessing super is generally applicable for Australians aged between 55 and 60 years old, depending on when their birthday falls. Australians aged over 65 years old who still work can also access their super, as can younger Australians in special circumstances. Moneysmart is a government-run initiative to inform Australians about money matters including how Australian super works.
Aside from the obvious benefit of working during retirement being an increase in money to cover the cost of living, older Australians may be less aware of others.
Working in retirement can provide older Australians with routine and a greater sense of purpose. Engaging with the working community can also facilitate the development of social connections that may not have been made otherwise. Choosing a new field to develop skills in could be a great challenge that may increase self-confidence and achievement.
For retirees looking to learn more about working during retirement, check out this article that goes into detail about how many hours you can work after retirement in Australia.
However, for some older Australians, going back to work in retirement may not be such a high priority. This doesn’t mean they can’t reap similar benefits from activities such as volunteering.
There is always more to do in your community than you would think, ranging from hobby groups to local sporting clubs to initiatives supporting older men and women. There are many ways to get involved in your community.
If working during retirement isn’t for you, voluntary work can open up so many windows and perspectives in life that you haven’t experienced previously.
Are you working during your retirement? How many hours at work is your preference each week?
Let the team at Your Retirement Living know on social media.
To get more information about how to stay healthy in retirement, subscribe to our free newsletter.
Relevant content:
Seven steps to affordable housing