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June 30, 2026 \u2014 11:56am<\/p>\n
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Remove items from your saved list<\/a> to add more.<\/p>\n AAA<\/p>\n As the cost of a comfortable retirement reaches a new high of $80,000 a year for couples, the government is stepping in to help more than 2.5 million Australians expected to retire in the next decade to budget their retirement savings.<\/p>\n The updated comfortable<\/a> retirement lump sum for home owners aged 67 is now $730,000 for couples and $630,000 for singles, according to the Association of Superannuation Funds of Australia.<\/p>\n It\u2019s an amount increasingly out of reach for many. The rising cost of living is a significant source of stress for pre-retirees, with 55 per cent expressing concern about its impact on their retirement plans.<\/p>\n Half of those nearing retirement worry their nest egg won\u2019t last the distance, while nearly a third already feel financially behind for retirement, according to the Australian Securities and Investments Commission (ASIC).<\/p>\n This has prompted the government to introduce reforms<\/a> to better oversee and understand how super funds help Australians during the retirement phase, an area often overlooked compared to the accumulation phase of super.<\/p>\n Editor’s pick Super funds have been good at building nest eggs but not so great at educating their members on how to access it when they need it most. But that is beginning to change, with funds launching a range of digital products that transform how members understand and manage their retirement.<\/p>\n These include a range of lifetime income products that pay a guaranteed regular income for the rest of your life in retirement. Super funds Colonial First State, AMP, Equip Super, UniSuper, Hostplus, AustralianSuper, MLC and Brighter Super have all recently introduced such products.<\/p>\n The problem for retirees is that it can be difficult to safely spend while knowing that your super will last the distance.<\/p>\n Fearful of running out, many retirees draw down the minimum, delay travel, avoid helping adult children and cut back on discretionary spending to preserve their super balance as though spending is a mistake.<\/p>\n The question isn\u2019t how much money has been saved in super, but whether the money will be enough to support the lifestyle retirees want to live, says Felipe Araujo, chief executive of Generation Life.<\/p>\n \u201cWhile the instinct to preserve capital is understandable, retirees risk protecting their savings so carefully they miss the years when they are at their healthiest to enjoy them,\u201d Araujo says.<\/p>\n Spending changes with age. Grattan Institute research shows spending starts to slow around 70 years of age and falls away more noticeably after 80. \u201cThe aim is not to pick one fixed number and assume it applies forever,\u201d he says.<\/p>\n The early years of retirement are often when people are the healthiest, most active and most able to travel, renovate, support family or enjoy the experiences they have spent years working towards. Over time, retirement spending usually eases as people age.<\/p>\n Flexible savings<\/p>\n The key is to ensure that some savings stay flexible, while some income helps offset the risk that retirement lasts much longer than expected.<\/p>\n \u201cThe risk is that uncertainty gets in the way. When retirees are unsure how long they will live, what inflation will do, how markets will perform, or what future health costs may look like, many can become more cautious than they need to. They protect the balance so carefully that they can miss the very window they were saving for,\u201d Araujo says.<\/p>\n \u201cRather than focusing on superannuation balance, the first step is to consider how much income is required. A balance tells you what you\u2019ve saved, but it doesn\u2019t tell you how much to live on.\u201d<\/p>\n Editor’s pick A good retirement budget should help people understand what they can spend in the earlier years, how that may change later, and what level of income gives them confidence along the way.<\/p>\n It helps to think about retirement spending in two buckets. The income you need for everyday life \u2013 bills, groceries, healthcare and other costs. Then there\u2019s the money for things that retirement is meant to make possible \u2013 a cruise, a new motorbike or helping your children or grandchildren onto the property ladder.<\/p>\n These two buckets of money aren\u2019t used for the same type of spending, so they shouldn\u2019t be treated the same way, Araujo says.<\/p>\n Everyday costs are regular and need to be covered with confidence. \u201cLifestyle spending is usually lumpier, more personal and easier to put off \u2013 which is precisely why it needs a place in the plan, not just a vague hope that there will be enough left over.\u201d<\/p>\n Meanwhile, the federal government website Moneysmart has launched a new retirement hub<\/a> with tools, calculators and guidance to support retirement planning that allow users to see how much income they could have in retirement and explore different scenarios that could affect their income over time.<\/p>\n Advice given in this article is general in nature and not intended to influence readers\u2019 decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.<\/p>\n Expert tips on how to save, invest and make the most of your money delivered to your inbox every Sunday. Sign up for our Real Money newsletter<\/a>.<\/p>\n Save<\/p>\n You have reached your maximum number of saved items.<\/p>\n![\"Sitting](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/05\/32263a77398cba8dfa95f4379d994735809a9625.jpeg\")
Sitting down and making a retirement budget can be critical in helping your super last your lifetime.Getty Images<\/p>\n![\"Superannuation](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/06\/9030932193aea06a1bc73ca378bb11803410804d.jpeg\")
<\/a>Stretching the nest egg<\/p>\n![\"Generation](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/06\/ac3c134674eba381341436fa1c53bf2ae1d3ea63.jpeg\")
Generation Life chief executive Felipe Araujo says it helps to think about retirement spending in two buckets.Eamon Gallagher<\/p>\n![\"Whatever](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/06\/84f56b20560a0779687945d52188fc79b1fe1288.jpeg\")
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