New figures reveal rising costs increase the amount Australians need for a comfortable retirement

Rising prices of energy, food and private health insurance has led to an uplift in the estimated amount Australians need for a comfortable retirement.

Fresh figures from the Association of Superannuation Funds Australia (ASFA) show couples aged around 65 now need $75,319 per year to achieve a comfortable retirement, with $53,289 required for singles.

This means overall couples now need to have $690,000 in their superannuation balance to achieve a comfortable retirement and a single person will need $595,000 when they retire.

An increase in retirees’ spending on digital connectivity has also added to the increase, with smartphones, streaming services and high-speed internet now standard budget items for older Aussies.

“The stereotype of the digitally challenged senior is outdated. Today’s retirees are as connected as anyone, and this is reflected in their household budgets,” ASFA chief executive Mary Delahunty said.

“Someone retiring in 2025 likely had their first mobile in their 30s, a Hotmail account in their early 40s, a BlackBerry device in their 40s, and their first iPhone in their early 50s.

A jump in the price of private health insurance, which rose 3.7 per cent over the quarter, electricity prices, which soared 8.1 per cent and the rising cost of fruits and vegetables also contributed to the lift of $58 a week from the previous quarter.

These figures come with the massive caveat of the person owning their own home when they retire.

Figures for a comfortable retirement for renters are not calculated.

For those looking for a more modest retirement, it will cost $45 more for a couple to retire in the quarter to June than the one before, the modelling shows.

Both couples and singles, who own their home, looking for a more modest retirement will need $100,000 in their superannuation.

Couples looking to achieve a modest retirement and are still renting will need $385,000 in their superannuation and singles will require $340,000.

In all these scenarios, the ASFA takes into account the member getting access to the aged pension at some point in their retirement.

Despite soaring living costs, Australians might actually be on track for a comfortable retirement.

According to the ASFA a 30-year-old worker with $30,000 in super and earning a median wage of $75,000 is now on track to achieve $610,000 in super by retirement, above what they will need for a comfortable retirement.

This follows the superannuation guarantee lifting to 12 per cent starting from July 1 2025.

It is the first time the body has predicted that someone on the median wage will reach that financial goal, since its reporting started in 2004.

“While cost of living increases can make the future feel uncertain, the good news is that superannuation is working well for more Australians every year and leading to greater financial independence in retirement than we have ever seen before,” Ms Delahunty said.