Australia’s leading superannuation body has indicated that a comfortable retirement requires more savings than ever, despite a recent slight decline in retirement costs. A drop in petrol and electricity prices has eased financial pressures for seniors, allowing them a bit of extra spending money during the festive season. Mary Delahunty, CEO of the Association of Superannuation Funds of Australia (ASFA), welcomed this temporary relief but noted that retirement expenses have risen significantly over the past 20 years.
In 2004, a single retiree needed $31,797 annually, while a couple required $41,394. Today, those figures have escalated to $51,814 and $73,031, respectively. Therefore, to retire comfortably at 67, a couple needs $690,000 in superannuation, and a single person needs $595,000.
Despite the recent easing, Delahunty emphasised that only about 30% of retirees currently possess the necessary funds for a comfortable lifestyle. This could improve to 50% with the upcoming increase in the superannuation guarantee rate to 12%. Pressures from rising living costs—such as healthcare and utilities—remain a concern for the elderly. To bolster retirement savings, experts suggest exploring appropriate investment options, utilising government co-contributions, and seeking assistance from financial advisors.