As most Australians would be aware, the cost of living has been a major issue in our economy for a few years now. Inflation, although seemingly dormant over much of 2024 and 2025, was historically high over 2022 and 2023. It has reared its ugly head again in 2026, as those struggling with the Reserve Bank of Australia (RBA)'s interest rate hike last month can attest. Yet despite all of this, the superannuation balance needed to supposedly fund a comfortable retirement has stayed static for three years.
Well, until now, that is.
The Association of Superannuation Funds of Australia (ASFA) is responsible for a widely used projection for how much superannuation the average Australian needs to fund a comfortable retirement. That phrase may sound generic, but it in fact refers to a specific set of criteria that has been determined to represent a dignified retirement that allows for freedom and a certain level of comfort. This criterion includes provisions for adequate levels of private health insurance, regular holidays, and reliable access to essential services such as electricity and internet.
ASFA takes into account that many retirees are able to use their superannuation balances in conjunction with either a part or full Age Pension to fund their retirements.
For the past three years, ASFA has decreed that the minimum super balance needed to hit 'comfortable retirement' status is $595,000 for singles, and $690,000 for couples. That assumes complete home ownership.
However, those figures are now outdated.
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How much superannuation does the average Australian need for a comfortable retirement?
This week, ASFA announced that it had determined that the superannuation balance now required to meet that comfortable retirement threshold has risen to $630,000 for singles and $730,000 for couples. That represents a rise of 5.88% for singles and 5.8% for couples.
So why the increase? Well, ASFA CEO Mary Delahunty has blamed the Age Pension itself:
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… 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.
However, it wasn't all good news. Delahunty also made this argument:
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… We also have the Superannuation Guarantee that has been steadily rising since 2020 and is now at 12%.
ASFA also pointed out that "a 30-year-old worker with $30,000 in super today and earning $80,000 throughout their career adjusted for inflation is on track to retire with $645,000".
Not all bad news indeed.
