The super balances needed at 67 for homeowners to fund a comfortable retirement in Australia have reached a record high, according to ASFA’s quarterly Retirement Standard released today.
The updated comfortable retirement lump sums for homeowners aged 67 are now $630,000 for singles (up from $595,000), and $730,000 for couples (up from $690,000). This is the first time ASFA’s lump sum figures have increased in three years.
ASFA CEO Mary Delahunty said the rise in lump sum benchmarks reflects greater pressures from living expenses on retirees’ super savings, but the overall picture for retirement outcomes is positive.
“Retirees’ living costs have risen, and support from the Age Pension has not kept pace with this rise. This means retirees need higher super savings to maintain a comfortable lifestyle.
“The good news is that Australians are reaching retirement with larger super balances than ever before. The super system is working really well, securing Australians’ retirements,” Ms Delahunty said.
Super balances are also on track to increase. A 30-year-old worker with $30,000 in super today and earning $80,000 throughout their career adjusted for inflation is on track to retire with $645,000.
“That’s because super funds have delivered exceptional returns in the last few years. The average balanced fund returned 9.9 per cent in 2023, 11.4 per cent in 2024, and 9.3 per cent in 2025. That’s cumulative growth of nearly 35 per cent over three years, well ahead of inflation.
“We also have the Superannuation Guarantee that has been steadily rising since 2020 and is now at 12%.
“Australia’s super system is built on a bargain: you pay a concessional tax rates if you save part of your income for retirement. That bargain is working exactly as it is supposed to, incentivising Australians to save for their own retirements and reducing reliance on Government welfare payments,” Ms Delahunty said.
Why lump sums have increased
The lump sums’ revision is because of two crucial factors: the fact that the Age Pension has not kept pace with retirees’ cost of living and the recently announced increase in deeming rates.
“The Age Pension has not kept pace with the actual cost increases retirees face, particularly for essential goods and services.
“Costs in the categories that retirees tend to spend most on have risen faster than general consumer price inflation. So that means even though the Age Pension is indexed, a greater burden is placed on retirees’ personal super savings,” Ms Delahunty said.
On Friday, 20 February, Minister for Social Services Tanya Plibersek announced significant changes to deeming rates (the assumed rates of return applied to financial assets when assessing Age Pension eligibility).
On 20 March 2026, the lower deeming rate will be rise to 1.25 per cent (from 0.75 per cent) for financial assets under $64,200 for singles and $106,200 for couples. The upper rate will rise from 2.75 per cent to 3.25 per cent for assets over the same thresholds.
These rates were last adjusted in September 2025, which ended a five-year pandemic-era freeze where rates sat at 0.25 per cent and 2.25 per cent respectively.
“When deeming rates rise, a person’s assessed income can increase even if their actual investment returns have not, which can reduce their Age Pension. This shifts more of a retiree’s budget towards reliance on super rather than Centrelink,” Ms Delahunty said.
The lump sums required for a modest retirement have also increased to $110,000 for singles and $120,000 for couples, up from the previous $100,000 for both groups.
Quarterly budget pressures
This quarter’s ASFA Retirement Standard budgets show that homeowners aged 65 and over now need $77,375 annually for a comfortable retirement as a couple, and $54,840 for a single.
Retirees continue to face higher inflation than the general population because they spend more on essentials that have risen fastest.
While the CPI rose 3.8 per cent in the 12 months to the December quarter 2025, the major price movers over the year for retirees were:
- Electricity up 21.5 per cent, driven by the expiry of energy bill relief subsidies
- Coffee and tea up 15.3 per cent due to rising commodity prices
- Beef up 10.8 per cent
- Domestic travel up 9.6 per cent
- Water up 7.1 per cent
- Property rates up 6.2 per cent
- Medical and hospital services up 4.3 per cent
- Fruit up 4.2 per cent
- Private rental costs, which affect retirees who don’t own their homes, were up 3.9 per cent, just above the general inflation rate.
On a positive note, automotive fuel fell 0.8 per cent over the year, due to falling commodity prices.
How do Australians know if they’re on track?
To be on track for the ASFA Comfortable Standard of $630,000 in super at retirement, Australians would aim to have the following super balances at the beginning of each respective age milestone. This assumes a future pre-tax income of $65,000 a year that keeps track with inflation:
| Age | Amount |
| 30 | $66,500 |
| 40 | $168,000 |
| 50 | $296,000 |
| 55 | $377,000 |
| 60 | $469,000 |
| 65 | $571,000 |
Ends
For further information, please contact:
ASFA media team
0451 949 300
mediaunit@superannuation.asn.au
About the Retirement Standard
The ASFA Retirement Standard is Australia’s trusted retirement savings companion, providing a breakdown of estimated expenses for both comfortable and modest lifestyles, for couples and singles to maintain a healthy, vital and connected lifestyle in retirement.
Updated quarterly, the Retirement Standard provides a guide to weekly and annual expenses, helping Australians plan effectively for their retirement.
The ASFA Retirement Standard Explainer complements this by showing the superannuation balances needed to retire at 67, and how they are calculated.
About the Association of Superannuation Funds of Australia (ASFA)
ASFA is the peak policy, research and advocacy body for Australia’s superannuation industry, and the only industry body that represents all parts of the APRA-regulated system.
Our more than 100 members include retail, industry, corporate and public sector funds and their service providers. For over sixty years, ASFA has been the voice of super, advocating for a dignified retirement for all Australians. Through research, advocacy and collaboration, ASFA promotes efficiency, sustainability and trust in Australia’s world-class retirement income system.