The Rising Cost of Retirement: Do You Really Need $1 Million in Super to Retire Comfortably in Australia?
The Rising Cost of Retirement: Do You Really Need $1 Million in Super to Retire Comfortably in Australia?
When it comes to retirement planning, the idea of needing $1 million in superannuation has become almost a cultural benchmark. Headlines, financial “rules of thumb,” and even casual conversations often push this number as a target for a comfortable retirement. But is it really necessary? And more importantly, how realistic is it for today’s Australians?
The Rising Cost of Retirement
The reality is that the cost of living in retirement has been steadily increasing. Essentials like housing, healthcare, utilities and everyday expenses have grown faster than wage growth for many Australians. This rising cost can make the $1 million target feel both aspirational and intimidating.
However, the truth is that retirement needs are highly individual. Factors like lifestyle choices, location, health and whether you own your home outright play a huge role in determining what a “comfortable retirement” really looks like.
$1 Million Is Not a One-Size-Fits-All Solution
The Association of Superannuation Funds of Australia (ASFA) publishes guidelines estimating what’s needed for a “comfortable” retirement. For singles, the current benchmark is around $625,000 and for couples, it’s roughly $750,000. These numbers assume you own your home and have basic healthcare needs covered.
So, while $1 million might seem like a safe, round number, it’s not strictly necessary for everyone. For some, $750,000 may be more than enough, while others, especially those planning to travel extensively or maintain a luxury lifestyle, may need significantly more.
Planning Your Retirement Around Your Needs
Instead of fixating on a dollar figure, it’s more practical to focus on:
Your lifestyle goals: Do you want to travel, pursue hobbies, or downsize your home?
Your expected expenses: Consider housing, healthcare and everyday living costs.
Your superannuation and savings: How much can your current super balance realistically support in retirement?
Your other income sources: Investments, part-time work, or government pensions can all supplement super.
By planning around your personal needs rather than a generic target, you can make informed decisions that put your retirement goals within reach.
Start Planning Now
Retirement planning is about clarity, strategy, and confidence, not chasing a headline number. With rising costs and longer life expectancies, starting early and seeking professional advice can make a huge difference in achieving the retirement you want.
At Maher Group, we help Australians assess their retirement needs realistically, optimise their super and create a plan tailored to their lifestyle goals. Because the right number isn’t universal, it’s yours.