Super needed for 'comfortable' retirement hits record levels

The super balance needed for a comfortable retirement has hit a new record high - and that's for people who already own their own home.

The Association of Superannuation Funds of Australia (ASFA) said today that home-owning singles could now expect to need a super fund of $630,000 (up from $595,000) at a retirement age of 67, compared to $730,000 (up from $690,000) for couples.

It's the first time ASFA's lump sum figures have increased in three years.

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Year-to-year, ASFA said, that broke down to an annual budget of $77,375 for couples and $54,840 for singles.

The lump sums required for a "modest retirement" have also increased to $110,000 for singles and $120,000 for couples, up from the previous $100,000 for both groups.

Retirees have faced major cost-of-living increases, including electricity (up 21.5 per cent), coffee and tea (up 15.3 per cent), and beef (up 10.8 per cent).

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Higher deeming rates and the pension falling behind real cost increases mean retirees are increasingly forced to rely on their super day-to-day.

On March 20, the lower deeming rate will rise to 1.25 per cent (from 0.75 per cent) for financial assets under $64,200 for singles and $106,200 for couples.

The upper rate will rise from 2.75 per cent to 3.25 per cent for assets over the same thresholds.

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These rates were last adjusted in September 2025, which ended a five-year pandemic-era freeze where rates sat at 0.25 per cent and 2.25 per cent respectively.

"When deeming rates rise, a person's assessed income can increase even if their actual investment returns have not, which can reduce their age pension," ASFA chief executive Mary Delahunty said.

"This shifts more of a retiree's budget towards reliance on super rather than Centrelink."

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However, while cost expectations are at a record high, ASFA said super funds were as well.

The average balanced fund delivered a 10.2 per cent annual compound rate of return over the last three years, while the superannuation guarantee has reached 12 per cent.

A 30-year-old with $30,000 in super and earning $80,000 is on track to retire with $645,000.

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"Retirees' living costs have risen, and support from the age pension has not kept pace with this rise," Delahunty said.

"This means retirees need higher super savings to maintain a comfortable lifestyle.

"The good news is that Australians are reaching retirement with larger super balances than ever before."

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To be on track for ASFA's "comfortable standard" of $630,000 in super at retirement, Australians would aim to have the following super balances at each respective age milestone.

ASFA's figures assume future pre-tax income of $65,000 a year which keeps track with inflation:

• 30 years: $66,500
• 40 years: $168,000
• 50 years: $296,000
• 55 years: $377,000
• 60 years: $469,000
• 65 years: $571,000

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