The superannuation balance that Australians need for a comfortable retirement has increased for the first time in three years to record highs, according to the Association of Superannuation Funds of Australia (ASFA).
ASFA said the super balance needed for homeowners aged 67 to fund a comfortable retirement was A$630,000 (US$445,000) for single people, up from $595,000, and $730,000 for couples (up from $690,000), according to ASFA’s quarterly Retirement Standard.
The lump sums required for a modest retirement had increased to $110,000 for singles and $120,000 for couples, up from $100,000 for both.
Chief Executive Officer Mary Delahunty said the rise in lump sum benchmarks reflected greater pressures from living expenses on retirees’ super savings, but the overall picture for retirement outcomes remained positive.
“Retirees’ living costs have risen, and support from the Age Pension has not kept pace with this rise. This means retirees need higher super savings to maintain a comfortable lifestyle,” she said in a media release.
“The good news is that Australians are reaching retirement with larger super balances than ever before. The super system is working really well, securing Australians’ retirements.”
A 30-year-old worker with $30,000 in super and earning $80,000 throughout their career, adjusted for inflation, was on track to retire with $645,000 due to exceptional returns in recent years.
The Superannuation Guarantee had now risen steadily since 2020 to 12%, and the average balanced fund return was 9.9% in 2023, 11.4% in 2024 and 9.3% in 2025, representing cumulative growth of almost 35% over three years.
The lump sum had been revised because the Age Pension had not kept pace with retirees’ cost of living, and due to rising deeming rates, the assumed rates of return applied to financial assets when assessing Age Pension eligibility.
“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. This shifts more of a retiree’s budget towards reliance on super rather than Centrelink,” Delahunty said.
The Retirement Standard budgets showed homeowners aged 65 and over needed $77,375 annually for a comfortable retirement as a couple, and $54,840 for a single.
Australians wanting to reach $630,000 in super at retirement would need to have the following balances at the beginning of each respective age milestone, assuming a future pre-tax income of $65,000 a year that keeps track with inflation.
