Revealed: How much Aussies will need to retire comfortably as pensioners hit hard by cost-of-living hike

Australians will need tens of thousands of dollars every year to top up their pension if they want to retire comfortably, an updated guide has revealed amid a hike in cost-of-living pressures.

The Association of Superannuation Funds of Australia (ASFA) has released its updated Retirement Standard, saying the amount a couple who own their home needs annually for a “comfortable retirement” currently sits at $78,998.

The maximum Age Pension for a couple is $47,070 annually, with the gap between retiring comfortably and a couple’s pension cap now $31,928.

In a statement on Tuesday, the ASFA pointed to recent increases in costs for electricity, vehicle maintenance, medical services, insurance, hairdressing and meals out and takeaways – which it said made up a large share of retirees’ spending.

ASFA CEO Mary Delahunty said retirees are among the groups of Australians “hit hardest” by heightened cost-of-living pressures.

“Super is the buffer between a life in which the bare essentials are covered by the Age Pension, and feeling comfortable and financially secure in retirement,” Ms Delahunty said.

A couple can currently receive a maximum of $905 per week via the Age Pension, meaning the payment would only cover around 60 per cent of what the ASFA considers a comfortable retirement.

For single pensioners, the maximum Age Pension is $600 per week, compared to the $1,076 per week they would need to retire comfortably.

“The Age Pension is a social welfare net that guarantees no older Australian has to live in poverty. It was never designed to fund the kind of lifestyle in retirement that most Australians aspire to,” Ms Delahunty said.

“Super is the difference between watching every dollar and having a sense of financial security in retirement.”

Ms Delahunty said that at the “comfortable level”, a retired couple could afford top-level private health insurance, regular meals out and a domestic holiday annually, along with an international trip every few years.

“They can run a good car that is regularly serviced. At the modest level, health cover is basic, probably a hospital plan only, holidays are domestic only, and you eat out very occasionally,” she said.

“On the Age Pension alone, most of these things drop out of your budget entirely.”

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