Age 62 is a milestone. You're still in the workforce but only five years away from being able to tap into your superannuation along with age pension. With the cost of living rising and the official estimate for a comfortable retirement topping $75,000 a year for couples, this is the moment many Australians stop and ask: Am I on track?
The numbers: Average super at retirement
The Association of Superannuation Funds of Australia (ASFA) reports that the average super balance for those retiring at 67 is $213,986 for men and $201,237 for women. While balances have been improving, they fall well short of the amount needed to fully fund a comfortable retirement without other sources of income.
At 62, your balance should ideally be ahead of these averages if you want to avoid relying heavily on the Age Pension.
Comfortable vs modest retirements
Not all retirements look alike. Some Australians enter their 60s with the freedom to travel, eat out, and enjoy leisure activities. Others are left counting every dollar, anxious about bills and unexpected costs.
ASFA's Retirement Standard outlines the difference.
- A comfortable lifestyle means private health insurance, a budget for fitness and leisure, local and occasional overseas travel, dining out, and the flexibility to replace or upgrade household items.
- A modest lifestyle covers the basics — food, energy, transport, and limited leisure — but little room for holidays or larger expenses.
And there's a big caveat: ASFA's benchmarks assume you own your home outright. If you're renting, retirement costs spike by more than 30% a year.
Costs rising faster than inflation
The challenge is that retirement costs are climbing quicker than general inflation. Over the year to June 2025, the price of both a comfortable and a modest lifestyle rose 2.75%, compared with CPI at 2.1%.
Key cost drivers include:
- Health: Couples aiming for comfort spend over $11,000 a year on cover and medical costs.
- Utilities: Power bills have surged by double digits across recent quarters.
- Food: Groceries alone total more than $13,000 annually for a comfortable couple.
- Technology: Retirees now spend close to $3,000 a year on broadband, mobile plans, and streaming.
Do you have enough set aside?
ASFA's savings benchmarks provide a guide:
- Comfortable couple: $690,000
- Comfortable single: $595,000
- Modest couple (homeowners): $100,000
- Modest single (homeowners): $100,000
- Modest couple (renters): $385,000
- Modest single (renters): $340,000
For Australians at age 62, this creates a critical five-year window to compare your super balance against these figures — and take steps to close the gap.
Five years to act
The good news is that there's still time. Here are three practical strategies:
1. Boost concessional contributions
Salary sacrifice or deductible contributions can accelerate your balance. If your super is under $500,000, the carry-forward rule allows you to use unused caps from the past five years.
2. Investing in a blend of growth and income assets
It's not all about preservation. Quality ASX shares and ETFs can help your balance outpace inflation, while dividend-paying stocks can provide reliable income in retirement.
3. Think beyond super
Rental income, part-time work, or passive investments outside super can reduce reliance on your nest egg and provide flexibility.
Foolish Takeaway
At 62, the focus shifts from building wealth from scratch to making every dollar work harder. Knowing your balance, understanding the lifestyle you want, and acting in these final five years before pension access can make all the difference. With smart contributions, sensible growth exposure, and diversified income streams, you can turn uncertainty into confidence and step into retirement prepared.
