The amount of superannuation needed for a comfortable retirement has reached a record high, according to the Association of Superannuation Funds of Australia (ASFA). The organisation said home-owning singles retiring at age 67 now need about $630,000 in super savings, while couples require around $730,000, marking the first increase in three years.
ASFA estimates that a comfortable retirement would require an annual budget of about $54,840 for singles and $77,375 for couples, while a modest retirement would require approximately $110,000 in savings for singles and $120,000 for couples.
Rising living costs, including higher electricity, food and daily expenses, have increased the financial pressure on retirees, forcing many to rely more heavily on their superannuation savings. Higher deeming rates and pension payments that have not kept pace with inflation have also contributed to the growing need for larger retirement balances.
Despite rising costs, ASFA noted that superannuation balances are also improving, with balanced super funds delivering an average annual return of about 10.2% over the past three years. The organisation said Australians are entering retirement with larger super balances than before, but higher savings are still required to maintain a comfortable lifestyle.
