Updated on 10 January 2025
5 minute read
New Association of Superannuation Funds of Australia (ASFA) Retirement Standard figures show that over the past 2 decades the cost of a comfortable retirement has increased by 75%.1
The figures underline why it’s never been more important to stay on top of your super, understand what type of retirement you’d like, and continue to consider ways to help grow your super.
Log in to Member Online to check if your super is on track.
ASFA first created its Retirement Standard 20 years ago to help give a clearer understanding of what retirement lifestyle your savings may give you.
The figures are updated quarterly to reflect inflation and provide detailed budgets of what singles and couples, who own their home, would need to spend to support a ‘comfortable’ or ‘modest’ lifestyle in retirement.
The September quarter 2024 data shows that couples aged 65-84 need to budget $73,031 annually to achieve a ‘comfortable’ retirement, while singles need $51,814.
This equates to $595,000 in superannuation savings for a single person retiring at age 67, and $690,000 for a couple retiring at age 67.
To retire ‘modestly’, the September quarter 2024 figures suggest that single people will need to budget about $32,930 a year and couples will need about $47,475 per year.
The ASFA Retirement Standard captures the costs of essentials like health, communication, clothing and household goods.
Over the past 20 years, the Retirement Standard figures show the cost of a comfortable retirement has increased by 75%, with modest budgets almost doubling.1
Price increases for necessities and shifting community needs, such as the inclusion of private health insurance in retirement, have contributed significantly to these increases, according to ASFA.
| Modest | Comfortable | |||
| Single | Couple | Single | Couple | |
|---|---|---|---|---|
| 2004 | $16,931 | $23,549 | $31,797 | $41,349 |
| 2024 | $32,930 | $47,475 | $51,814 | $73,031 |
Source: 1. ASFA, Superannuation peak body: Retirement costs finally fall, just in time for Christmas.
About 30 years ago, life expectancy in Australia was 74.5 years for males and 80.4 years for females.2 By 2020-22, the Australian Bureau of Statistics reports that life expectancy had risen to 81.2 years for males and 85.3 years for females. All of which means we will live longer in retirement, so our retirement savings, including super, will have to last longer.
Living longer can also lead to higher medical bills. For many retirees, private health insurance has become a must.3
Everyone has a different idea of what they want to do when they retire. For some it's about relaxing, reconnecting, or spending time with grandchildren. But for others it's about action, adventure, and travel. And that costs money.
As well as action, adventure and travel, the cost of essentials has increased. Here’s some examples of price increases over the past 20 years.
| Goods and services | Increase |
|---|---|
| Water and sewerage | 161% |
| Electricity | 150% |
| Gas | 122% |
| Automotive fuel | 113% |
| Medical and hospital | 112% |
| Property rates | 106% |
| Insurance | 99% |
| Dental | 91% |
| Takeaway food | 81% |
| Meals out | 78% |
| Urban transport | 76% |
| Food | 72% |
| Hairdressing | 72% |
| Domestic travel and accommodation | 61% |
| International travel and accommodation | 53% |
| Pharmaceuticals | 52% |
| Wine | 45% |
| Telecommunication services | 38% |
| Clothing and footwear | 32% |
| Motor vehicles | 23% |
Source: 1. ASFA, Superannuation peak body: Retirement costs finally fall, just in time for Christmas.
So, how much super do you need for a comfortable retirement? For many it’s a tricky question with 55% of Australians not sure they will have enough set aside for their retirement.4
But if you feel your super balance may be falling short of your expectations for retirement, there are still plenty of ways to help grow your super. These include:
Finding and consolidating lost super into one account could save you money on fees and help your retirement funds grow. We aim to make it easy to search for lost or forgotten super and combine it into one account through Member Online.
Find out more
Paying money into your super from before-tax salary means less income tax while you grow your retirement savings.
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Even small amounts from your after-tax pay each week or month may make a big difference to your savings, and you may be eligible for a tax deduction.
Find out more
Contributing to a spouse’s super could attract a tax offset of up to $540. (Eligibility and conditions apply.)
Find out more
Log in to Member Online to check if your super is on track.
Find out more about our advice options. Advice about your account with us is included with your membership.6
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1. ASFA media release, Superannuation peak body: Retirement costs finally fall, just in time for Christmas, accessed 10 December 2024.
2. Australian Bureau of Statistics, Life expectancy report, accessed 11 December 2024.
3. National Seniors Australia, media release, Private health insurance premiums go up again, accessed 11 December 2024.
4. Survey of 1000 Australians carried out by IPSOS on behalf of Australian Retirement Trust, September to November 2023.
5. Before you consolidate, think about whether it’s right for you. You could lose access to benefits such as insurance or pension options, and you need to consider tax implications.
6. Any advice given is by representatives of Sunsuper Financial Services Pty Ltd (ABN 50 087 154 818, AFSL 227867), wholly owned by the Trustee. As representatives, they may recommend ART products from time to time. So read the relevant Financial Service Guide at art.com.au/fsg to tell you about that advice and how they’re paid.
