Retirement is a milestone many Australians dream of, but new research reveals a harsh reality: half of us feel financially unprepared. With the cost of a comfortable retirement climbing by over $13,000 a year, it’s time for a wake-up call. Let’s dive into what’s driving this insecurity and how Aussies can plan for a secure future.
Why Are Australians Worried About Retirement?
According to AMP’s new Retirement Confidence Pulse, 50% of Australians lack confidence in their retirement finances, scoring a modest 50/100 on the national barometer. This paints a clear picture: millions are unsure if they’ll have enough to live comfortably after leaving the workforce.
Certain groups feel the pinch more than others. Only two in five women feel financially secure about retirement, compared to three in five men. Single Australians, especially single mothers, job seekers, and those in the “sandwich generation” (caring for both kids and aging parents) are under even more pressure.
The Rising Cost of a Comfortable Retirement
The cost of living is hitting retirees hard. Data from the Association of Superannuation Funds of Australia (ASFA) shows that retirees now need significantly more money than they did five years ago. Here’s a breakdown:
| Retirement Type | Annual Cost (2025) | Increase (Past 5 Years) |
|---|---|---|
| Couple (age 65) | $75,319 | +$13,000 |
| Single (age 65) | $53,289 | +$13,000 |
Rising costs for private health insurance, electricity, and fresh food are the main culprits. These expenses are making it harder for retirees to maintain a comfortable lifestyle without dipping deeper into their savings.
How Much Super Do You Need?
Superannuation is a cornerstone of retirement planning in Australia. ASFA estimates that to achieve a comfortable retirement at age 67, you’ll need:
- Couples: $690,000 in superannuation.
- Singles: $595,000 in superannuation.
These figures assume you own your home, draw down all your capital, and receive a part-age pension from the government. But with inflation and rising costs, these numbers could climb even higher in the coming years.
Who Feels Most Confident?
Income plays a big role in retirement confidence. Only half of middle-income earners ($45,000–$135,000) feel secure about their future. In contrast, three in four high earners ($190,000–$250,000) are confident they’ll retire comfortably. This gap highlights how financial security often depends on income and savings habits.
The Demographic Shift
Australia’s population is aging rapidly. In just four decades, nearly a quarter of Aussies will be over 65. This shift will reshape the economy and society, putting more pressure on policymakers and the superannuation industry to address retirement insecurity.
AMP’s chief executive, Alexis George, put it bluntly: “Despite growing super balances and national wealth, too many Australians feel financially insecure about life after work. This needs to be a priority.”
How to Boost Your Retirement Confidence
Feeling uneasy about your retirement? You’re not alone. Here are practical steps to take control:
- Check your super balance regularly: Use your super fund’s online portal to track your savings.
- Contribute extra to super: Even small voluntary contributions can add up over time.
- Seek financial advice: A planner can help you create a tailored retirement strategy.
- Budget for rising costs: Factor in inflation and unexpected expenses like healthcare.
Taking these steps now can make a big difference in how secure you feel when it’s time to retire.
FAQs About Retirement in Australia
Q: How much money do I need for a comfortable retirement in Australia?
A: For a comfortable retirement at age 65, couples need about $75,319 per year, while singles need $53,289, according to ASFA.
Q: What superannuation balance is required for retirement?
A: ASFA estimates couples need $690,000 and singles need $595,000 in superannuation for a comfortable retirement at age 67.
Q: Why are Australians feeling financially insecure about retirement?
A: Rising costs of living, including private health insurance, electricity, and food, combined with insufficient super savings, are driving insecurity.
Q: Who is most at risk of retirement insecurity?
A: Women, single Australians, single mothers, job seekers, and the “sandwich generation” are among the most financially insecure groups.
Q: How can I improve my retirement savings?
A: Regularly check your super, make extra contributions, seek financial advice, and budget for rising costs to boost your savings.