Fresh projections suggest a growing number of Australians are positioned to meet retirement savings benchmarks, yet opinions differ sharply over what “comfortable” truly means. A new analysis indicates that younger workers on average wages may already be ahead of schedule, helped by the latest boost to the superannuation guarantee.
Two recent sets of figures from leading industry groups paint contrasting pictures of retirement readiness. While official benchmarks signal that many will meet their targets, alternative estimates propose far lower sums as sufficient, prompting questions over how much super is really needed.
Superannuation Targets and Current Averages
The Association of Superannuation Funds of Australia (ASFA) estimates that by age 67, a single homeowner requires $595,000 in super savings, and a couple $690,000, to enjoy a comfortable retirement. These figures assume the home is owned outright, part Age Pension eligibility, and average annual investment returns of six per cent.
In its latest projections, ASFA calculates that a 30-year-old earning the median wage of $75,000, with a current balance of $30,000, will retire with about $610,000 under the 12 per cent superannuation guarantee. This exceeds the recommended amount for a single homeowner. ASFA’s benchmark balances by age range from $5,500 at age 22 to $584,000 by age 66.
According to the Australian Taxation Office, the average super balance for those aged 60 to 64 is around $395,000 for men and $315,000 for women. However, median balances—$220,000 for men and $163,000 for women—are substantially lower, reflecting the disparity caused by high balances held by a smaller group.
ASFA chief executive Mary Delahunty described the increased super guarantee as a “major milestone” for the system, saying it is now better positioned to “provide a dignified retirement for ordinary Australians”.
Alternative Views on What Is ‘Enough’
Some experts believe ASFA’s figures are unnecessarily high. According to finance commentator Scott Pape, also known as the Barefoot Investor, a single homeowner could comfortably retire with as little as $250,000 if they also receive the Age Pension and are willing to undertake some part-time work. He described ASFA’s benchmarks as “unrealistic for most people” and argued they reflect the interests of the superannuation sector.
Super Consumers Australia, in partnership with Choice, offers alternative targets based on actual retiree spending patterns drawn from Australian Bureau of Statistics data. Their analysis suggests a single homeowner needs around $310,000, and a couple $420,000, to maintain their lifestyle through retirement. According to its chief executive, Xavier O’Halloran, these sums, when combined with Age Pension payments, could provide annual incomes of about $43,000 for singles and $62,000 for couples until age 90.
