New ASFA polling shows 42 per cent of Australians believe they need more than $1 million in super to retire comfortably, above the ASFA Retirement Standard benchmark of $730,000 for a couple and $630,000 for a single person.
Its latest quarterly Retirement Standard budgets show that homeowners aged 65 and over now need $78,566 annually for a comfortable retirement as a couple, and $55,923 for a single – increases of 1.5 per cent and 2.0 per cent respectively from the previous quarter. The overall CPI increased by 1.5 per cent over the same period.
ASFA chief executive Mary Delahunty said inflation is changing how Australians think about their financial futures.
“When households really feel the pressure of grocery, petrol, energy and other bills keep climbing, people naturally assume that retirement will cost a fortune,” Delahunty said.
“But the reality is that retirement generally costs less than working life. Retirees pay no tax on superannuation pension income after 60, most own their home outright, work-related costs disappear and concessions reduce the price of energy, medicines, transport and council rates.”
Younger Australians are more concerned about how the housing affordability crisis will impact their retirement, with many anticipating they will still be renting or paying off a mortgage once they’re in the retirement phase.
Among 25- to 34-year-olds, 51 per cent believe they will need more than $1 million in today’s dollars to retire comfortably, and 23 per cent believe they will need more than $2 million. The figures are similar for 35 to 49-year-olds, at 52 per cent and 22 per cent respectively.
Expectations of retirement budgets tend to soften with age. Among 50- to 64-year-olds, 40 per cent believe more than $1 million is required, falling to 29 per cent for those aged 65 and over. The share expecting to need more than $2 million drops to 11 per cent and 8 per cent respectively across these cohorts.
“For a long time, the assumption was that you would own your home by the time you retired. For many younger Australians, that feels like a much less attainable reality,” Delahunty said.
“House prices have diverged significantly from wages over the last two decades, and many people now expect to carry rent or mortgage payments into retirement. It makes sense that they believe they will need much more in super than earlier generations did.
“Homeownership is an important aspect of dignity in retirement, alongside the financial security that comes from retirement savings. Addressing the housing affordability crisis, so that we start improving access to homeownership for younger generations of Australians, is a crucial public policy goal.”
Many retirees continue to face higher inflation than the general population because they spend more on essentials that have risen fastest.
While the CPI rose 4.6 per cent in the 12 months to the March quarter 2026, the major price movers over the year for retirees were electricity – up 25.4 per cent, driven by the expiry of energy bill relief subsidies – followed by automotive fuel, up 24.2 per cent, and coffee and tea, which were up 10.7 per cent due to rising commodity price
