New ASFA polling shows 42 per cent of Australians believe they need more than $1 million in super to retire comfortably, above the ASFA Retirement Standard benchmark of $730,000 for a couple and $630,000 for a single person.
This quarter’s ASFA Retirement Standard budgets show that homeowners aged 65 and over now need $78,566 annually for a comfortable retirement as a couple, and $55,923 for a single, increases of 1.5 per cent and 2.0 per centfromthe previous quarter, respectively.The overall CPI increased by 1.5 per cent over the same period.
“Inflationischanginghow Australians think about their financial futures. Whenhouseholds really feel the pressure ofgrocery, petrol,energyand otherbills keep climbing,people naturally assume thatretirement will cost a fortune,” said ASFA CEO Mary Delahunty.
“But the reality is that retirement generally costs less than working life. Retirees pay no tax on superannuation pension income after 60, most own their home outright, work-related costs disappear, and concessionsreduce the price of energy, medicines,transportand council rates.
The housingaffordabilitycrisis islikelyweighingheavilyon theretirementoutlook of younger Australians, with manyanticipatingthey will still be renting or paying off a mortgage in retirement.
Among 25 to 34-year-olds, 51 per cent believe they will need more than $1 million in today’s dollars to retire comfortably, and 23 per cent believe they will need more than $2 million. The figures are similar for 35 to 49-year-olds, at 52 per cent and 22 percentrespectively.
Expectationsof retirement budgets tend tosoften with age. Among 50 to 64-year-olds, 40 per cent believe more than $1 million isrequired, falling to 29 per cent for those aged 65 and over. The share expecting to need more than $2 million drops to 11 per cent and 8 per cent respectively across these cohorts.
“For a long time, the assumption was that you would own your home by the time you retired. For many younger Australians, that feelslikeamuchless attainable reality. House prices have divergedsignificantlyfrom wages over the last two decades, and many people now expect to carry rent or mortgage payments into retirement. It makes sense that theybelievethey will need much more in super than earlier generations did.
“Homeownership is an important aspect ofdignity inretirement, alongsidethe financial security that comes from retirementsavings.Addressing thehousing affordability crisis, so that we startimprovingaccessto homeownershipfor younger generations ofAustralians,is acrucial public policy goal,”Ms Delahunty said.
Annual budget changes
Many retirees continue to face higher inflation than the general population because they spend more on essentials that have risen fastest.
While the CPI rose 4.6 per cent in the 12 months to the March quarter 2026, the major price movers over the year for retirees were:
- Electricity up 25.4 per cent, driven by the expiry of energy bill relief subsidies
- Automotive fuel up 24.2 per cent
- Coffee and tea up 10.7 per cent due to rising commodity prices
- Beef up 11.8 per cent
- Water charges up 7.1 per cent
- Property rates up 6.2 per cent
How do Australians know ifthey’reon track?
To be on track for the ASFA Comfortable Standard of $630,000 in super at retirement, Australians would aim to have the following super balances at the beginning of each respective age milestone. This assumes a future pre-tax income of $100,000 a year that keeps track with inflation:
| Age | Amount |
| 30 | 0 |
| 40 | $98,500 |
| 50 | $248,500 |
| 55 | $342,000 |
| 60 | $449,500 |
| 65 | $574,000 |
The full Retirement Standard budget expenditure breakdown is available here.
For further information, please contact:
Scott Roberts, ASFA Media Lead
mediaunit@superannuation.asn.au
About ASFA
ר is the peak policy, research and advocacy body for Australia’s superannuation industry, and the only industry body that represents all parts of the APRA-regulated system.
Our more than 100 members include retail, industry, corporate and public sector funds and their service providers. For over sixty years, ASFA has been the voice of super, advocating for a dignified retirement for all Australians. Through research, advocacy and collaboration, ASFA promotes efficiency, sustainability and trust in Australia’s world-class retirement income system.