The total super balance required for a comfortable retirement has hit an all-time high of $730,000 for couples and $630,000 for singles, according to the Association of Superannuation Funds of Australia (ASFA) latest retirement standard for the December quarter.
“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,” ASFA chief executive Mary Delahunty noted.
Further, ASFA’s analysis showed an individual homeowner aged 67 will now need an annual revenue of $54,840 and a couple who own their abode would require $77,375 to achieve a comfortable retirement.
The consumer price index rose to 3.8 per cent over the 12 months to the December quarter 2025, but retirees were hit by the rising cost of electricity, which was up 21.5 per cent, increases in the price of coffee and tea (up 15.3 per cent) and travel costs, which rose by 9.6 per cent.
“Costs in the categories that retirees tend to spend most on have risen faster than general consumer price inflation. So that means even though the age pension is indexed, a greater burden is placed on retirees’ personal super savings,” Delahunty explained.
Another factor impacting the age pension for some retirees will be the increase in deeming rates from next month.
“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.
On a positive note, superannuation balances are also higher than ever, boosted by strong returns and the increase in the super guarantee to 12 per cent.
“Super funds have delivered exceptional returns in the last few years. The average balanced fund returned 9.9 per cent in 2023, 11.4 per cent in 2024 and 9.3 per cent in 2025. That’s cumulative growth of nearly 35 per cent over three years, well ahead of inflation,” Delahunty revealed.
