Single homeowners need $56,116 a year, or $1,079 a week, to achieve a comfortable retirement where they could afford top-level health insurance, eat out most weeks, take a domestic holiday each year and go overseas every few years.<\/p>\n
The maximum age pension is currently sitting at $905 a week for couples and $600 a week for singles. It will go up slightly on September 20.<\/p>\n
<\/p>\n
The full pension covers around 60 per cent of the cost of a comfortable retirement for a couple and 56 per cent for a single. <\/p>\n
According to ASFA, the gap between the age pension and the amount needed for a comfortable retirement is \u201cgetting bigger every year\u201d, so people need more in their super to fill the gap.<\/p>\n
\u201cThe Age Pension is a social welfare net that guarantees no older Australian has to live in poverty,\u201d ASFA CEO Mary Delahunty said.<\/p>\n
\u201cIt was never designed to fund the kind of lifestyle in retirement that most Australians aspire to. <\/p>\n
\u201cSuper is the difference between watching every dollar and having a sense of financial security in retirement.\u201d<\/p>\n
Retiree costs rising faster than inflation<\/p>\n
While the consumer price index rose 3.8 per cent in the 12 months to June 2026, the items that make up a big share of retirees\u2019 spending rose much faster.<\/p>\n
Electricity shot up 22.4 per cent, vehicle costs were up 6.5 per cent, medical and hospital up 5 per cent, and insurance rose 4.9 per cent.<\/p>\n
Hairdressing and grooming services increased 4.2 per cent, while meals out and takeaway were up 4 per cent.<\/p>\n
One item that went down was fuel, with petrol and diesel falling 7.3 per cent over the year off the back of lower global oil prices and the temporary fuel excise cut.<\/p>\n
\u201cRetirees are among the groups hit hardest by the cost-of-living crisis because their budgets are weighted towards the things going up in price the most,\u201d Ms Delahunty said.<\/p>\n
On September 20, the age pension will increase with indexation by $55.60 per fortnight for couples and $36.80 per fortnight for singles.<\/p>\n
Deeming rates, which are the set percentages the government assumes your financial assets earn, will increase by 0.50 per cent.<\/p>\n
The lower deeming rate will increase to 1.75 per cent for the first $66,800 for singles and the first $110,600 for couples.<\/p>\n
The upper deeming rate will increase to 3.75 per cent for amounts above those thresholds.<\/p>\n
Superannuation needed to retire at 67<\/p>\n
As a lump sum amount, ASFA estimates a couple would need $730,000 in superannuation to retire comfortably at 67. A single would need $630,000.<\/p>\n
This is based on owning your home and drawing down all your capital and getting a part-age pension.<\/p>\n
A 30-year-old single on a $75,000 income would need a current balance of $44,500 to achieve this, according to ASFA estimates.<\/p>\n
A 40-year-old would need $146,000, a 50-year-old would need $282,500, and a 60-year-old would need $466,000.<\/p>\n
According to the latest ATO data, the mean super balance for people aged 15 and over is $202,644 for men and $164,206 for women.<\/p>\n
For those nearing the typical retirement age between 60 to 64, the mean is $371,379 for men and $327,440 for women.<\/p>\n
Next election a \u2018referendum on super\u2019<\/p>\n
It comes as the superannuation system comes under fire, with the next election labelled a \u201creferendum on superannuation\u201d by Treasurer Jim Chalmers.<\/p>\n
One Nation leader Pauline Hanson has labelled the system \u201cbroken\u201d and called for workers to be able to access their retirement savings early.<\/p>\n
Under One Nation\u2019s policy, Aussies who pay rent or a mortgage would be given the option to divert 3 per cent of their compulsory 12 per cent contributions to their take-home pay for up to three years.<\/p>\n
This would give the average full-time worker earning $90,500 an extra $2,300 in their pocket each year, or $44 a week.<\/p>\n
ASFA has labelled the plan \u201ceconomically disastrous\u201d, arguing it would push up inflation and \u201cmake people poorer in retirement\u201d.<\/p>\n
Its modelling found a 30-year-old earning $110,000 would receive around $54 a week towards their rent or mortgage, but would retire with $23,900 less in today\u2019s dollars if they used the scheme for three years. <\/p>\n
\u201cAny erosion of 12 per cent super would undo the gains our country has made on working Australians retiring with dignity,\u201d Ms Delahunty said.<\/p>\n
\u201cSuper is individuals\u2019 money set aside for their retirement, not a convenient pot for governments to solve other policy problems.<\/p>\n
\u201cThe cost-of-living and housing crises need their own solutions. Forcing Australians to solve them by robbing from their own future selves is not a helping hand. It is a worse deal than previous generations had.\u201d<\/p>\n
A similar loss was projected by Super Members Council, which said a 30-year-old worker on $90,5000 would be down $25,000 in superannuation at retirement. <\/p>\n","protected":false},"excerpt":{"rendered":"Aussies now need more money in their superannuation to retire comfortably, as retiree living costs rise at 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