Insane amount of super Aussies need to retire comfortably - do you have enough?
The shocking amount Aussies will need to have saved up to comfortably retire has been revealed and it could spell disaster for an aging population.
The shocking amount Aussies will need to have saved up to comfortably retire has been revealed and it could spell disaster for an aging population.
Research from the Association of Superannuation Funds of Australia (ASFA) has revealed the average single Aussie aged between 65-84 would need $52,085 a year to live comfortably in retirement.
That means they would need more than $1million saved up to sustain a 20-year stint in retirement.
The research also found that couples in the same age range would need $73,337 a year, adding more than $466,000 to the savings needed to live comfortably.
This is despite seperate figures from ASFA revealing the average Aussie only having $549,000 in their super at 65-years-old.
ASFAs figures, which have grown by 0.9 per cent in the second quarter of 2024 and 3.7 per cent over the past 12 months, also assume retirees own their home.
A breakdown of average monthly costs has also revealed how retired Aussies are being pushed to a breaking point due to a soaring cost-of-living.
ASFAs CEO, Mary Delahunty, said it was more crucial than ever for Aussies to have a secure retirement plan that doesnt solely rely on superannuation.
The average Aussie pensioner would need more than $1million saved up to live a comfortable retirement for 20 years, according to new research (stock image)
Ms Delahunty added that Aussies should still have access to adequate superannuation savings for a comfortable retirement.
Retirees are managing an increasingly difficult landscape where the costs of essential goods and services keep rising, she said.
Health, home, and transport are vital to their well-being, yet the expenses tied to these necessities are steadily increasing.
Transport, housing and food have proven to be the giving pensioners the most pressure on a weekly budget.
While annual inflation on food decreased from 3.8 per cent to 3.3 per cent across the quarter, fresh vegetables and fruit remain 3.7 per cent higher than a year ago.
The increases led to the average Aussie pensioner spending about $144 a week on groceries, while transport and housing set them back $181 and $142 respectively.
The figures could spell disaster for the average Aussie who only has $549,000 in their superannuation at 65-years-old (stock image)
Director of Tax Communications for H&R Block, Mark Chapman, said the research was another warning for Aussies to start taking their superannuation seriously.
Mr Chapman said Aussies should be thinking about their super as early as possible as it has more time to grow by the time they retire.
Whilst retirement might seem like a long way off when you start your first job, it pays to take super seriously from the start of your working life, he told Yahoo.
investing in super is a good way of saving for your retirement, particularly as you start to earn more and your personal marginal tax rate goes up.
Mr Chapman also urged Aussies to consolidate their super into a fund without high fees as it has the potential to dramatically reduce the amount you are able to live on in your old age.
