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.
Australians need more super than ever to enjoy a comfortable retirement. (Getty)
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).
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.
Tea and coffee costs are surging. (Getty)
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.”
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.
“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.”
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: $66,50040 years: $168,00050 years: $296,00055 years: $377,00060 years: $469,00065 years: $571,000
NEVER MISS A STORY: Get your breaking news and exclusive stories first by following us across all platforms.