Australian retirees may be planning a tighter Christmas this year as rising living costs push the price of a comfortable retirement to record levels, according to the latest ASFA Retirement Standard.
But ASFA CEO Mary Delahunty says this quarter’s financial pressures highlight the strengths of Australia’s superannuation system.
“Retirees might be feeling the squeeze this Christmas because prices have risen fastest in the things they spend most on, like food, energy and health. Some older people may cut back on pricier gifts, travel and social occasions to stay on top of the basics.
“However, thanks to superannuation, most Australian retirees are living with additional income beyond the Age Pension each month, which makes them more financially resilient, including at financially stressful times of the year like Christmas.
“In many countries, retirees rely almost entirely on a state pension. In Australia, retirees’ own super savings sit on top of our state pension and provide a buffer. This means financial flexibility they would not have if they solely depended on monthly payments from the taxpayer,” Ms Delahunty said.
Quarterly changes in the Retirement Standard
For homeowners aged 65 and over, the annual budget needed for a comfortable lifestyle in retirement is now $76,505 for a couple and $54,240 for a single. These budgets rose by 1.6 per cent and 1.8 per cent respectively in the September quarter, and by 3.5 per cent and 3.6 per cent over the year.
By comparison, the Consumer Price Index for the September 2025 quarter rose 1.3 per cent over the quarter and 3.2 per cent over the twelve months to September 2025. This underscores that retirees are experiencing stronger price pressures than the general population because they spend more of their budget on essential items that have risen the most.
In the September quarter:
- There was a 1.3 per cent increase in the cost of eating out and takeaways
- Property rates rose 6.3 per cent
- Electricity prices were up 9.0 per cent
- Domestic holiday travel and accommodation increased 5.2 per cent
- Audio, visual, media and services rose 9.3 per cent
“Fortunately for many retirees, it is the income they get from their superannuation savings that allows them to keep celebrating occasions like Christmas without having to worry about every dollar,” Ms Delahunty said.
Super reforms in 2025 have helped to secure future Christmases
Ms Delahunty also noted that improvements to the super system in 2025, including the move to 12 per cent super and Payday Super settings, would further strengthen financial resilience for future generations’ Christmases.
Despite cost-of-living pressures, ASFA’s recent research on superannuation balances shows the system is delivering greater financial security in retirement than ever before, and that outcomes for retired Australians are improving each year.
Average superannuation account balances have risen to a record $172,834 across nearly 18 million account holders aged 15 and over. For Australians approaching or in retirement, the figures are higher again, with those aged 65 to 69 now averaging around $420,934 in retirement savings.
Ms Delahunty said a series of recent and upcoming policy changes would strengthen retirement outcomes further, particularly for younger workers, women and low-paid Australians.
This year saw the Superannuation Guarantee reach 12 per cent of wages, locking in higher contributions across people’s working lives and lifting final balances for millions of Australians.
From 1 July 2026, Payday Super will require employers to pay super at the same time as wages, rather than quarterly. This reform will reduce unpaid or late super, get contributions invested sooner and build balances over time, with particular benefits for younger and blue-collar workers.
“More Australians than ever before are reaching retirement with meaningful super behind them, and recent reforms, including the move to 12 per cent super and Payday Super, will lift retirement security even further.
“The challenge now is to keep strengthening the system so every Australian has the best possible chance of a comfortable, dignified retirement, not just at Christmas but all year round. This will be ASFA’s North Star in 2026 and beyond,” Ms Delahunty said.
The full Retirement Standard release, including detailed budget breakdowns, is available here.
ENDS
For further information, please contact:
ASFA media team
0451 949 300
mediaunit@superannuation.asn.au
About the Association of Superannuation Funds of Australia (ASFA)
ASFA, the voice of super, has been operating since 1962 and is the peak policy, research and advocacy body for Australia’s superannuation industry. ASFA represents the APRA regulated superannuation industry with over 100 organisations as members from corporate, industry, retail and public sector funds, and service providers. We develop policy positions through collaboration with our diverse membership base and use our deep technical expertise and research capabilities to assist in advancing outcomes for Australians.
We unite the superannuation community, supporting our members with research, advocacy, education and collaboration to help Australians enjoy a dignified retirement. We promote effective practice and advocate for efficiency, sustainability and trust in our world-class retirement income system.