Ask most Australians how much superannuation they need to retire comfortably and you will get a shrug.
Ask the Association of Superannuation Funds of Australia and you will get a very specific answer.
According to ASFA's February 2026 Retirement Standard, a comfortable retirement now costs $51,278 per year for a single person and $77,375 per year for a couple.
To fund that lifestyle from age 67, ASFA estimates homeowners need $630,000 in superannuation for singles and $730,000 for couples.
Those figures have just reached all-time highs, driven by inflation pushing up the cost of healthcare, energy, food, and services. And many Australians are nowhere near them.
Image source: Getty Images
The gap is bigger than most people realise
According to APRA's most recent superannuation statistics, the average superannuation balance at retirement age is approximately $250,000 for men and $160,000 for women.
That is less than half of what ASFA says a single person needs for a comfortable retirement.
In better news, the shortfall is not a crisis for those who will receive the full Age Pension.
A modest retirement, defined by ASFA as a lifestyle slightly above the Age Pension, requires only $110,000 for singles and $120,000 for couples. This is because the pension does most of the heavy lifting.
But the difference between a modest and comfortable retirement is approximately $20,000 per year for singles.
That gap funds private health insurance, a car replacement, regular dining out, annual domestic travel, and an overseas trip every few years.
For most Australians, that gap is worth closing.
Why ASX shares inside super are one of the most powerful tools available
The good news is that superannuation, combined with smart investing inside it, is one of the best wealth-building tools available to Australians.
Earnings inside super are taxed at just 15% during the accumulation phase, compared to your marginal tax rate outside super.
In retirement, those earnings become completely tax-free.
The S&P/ASX 200 has returned approximately 8.5% per annum including dividends since inception. Inside a superannuation structure, this figure translates to an after-tax return that few alternative asset classes can match.
A 35-year-old with $100,000 in super today, earning 8.5% per annum and contributing 12% of a $100,000 salary, would accumulate approximately $1.8 million by age 67.
That is comfortably above the ASFA comfortable retirement benchmark. It also exposes the common misconception that superannuation alone cannot get most Australians to a dignified retirement.
Two ASX shares worth holding inside super
For investors building wealth inside super, quality fully franked dividend payers are particularly effective.
Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP) are two of the most widely held ASX shares in superannuation funds, and for good reason.
CBA is forecast to pay a fully franked dividend of approximately $5.15 per share in FY2026, held inside a super fund taxed at 15%. This dividend also generates a franking credit refund that effectively boosts the after-tax yield well above the headline figure.
BHP's fully franked dividend, backed by iron ore and copper earnings, provides exposure to commodity price growth alongside a reliable income stream.
Both are businesses that reward the patient, long-term holding philosophy that superannuation, by its very nature, encourages.
The 30 June deadline is important
The concessional contributions cap for FY2026 sits at $30,000, including employer contributions.
Australians who have not yet reached that cap have until 30 June 2026 to make additional pre-tax contributions.
Every dollar contributed at the 15% concessional rate rather than at a marginal rate of 32.5% or higher is a permanent and compounding tax saving.
Foolish takeaway
The number that ASFA puts on a comfortable retirement might be higher than you expected.
But the combination of compulsory superannuation, the tax advantages of the super structure, and the long-term returns available from quality ASX shares makes that target achievable for most Australians who start paying attention early.
