Retirement might seem like a distant dream for some, but for thousands of Aussies, it\u2019s quickly becoming a nightmare. A recent report has revealed that Australian renters are facing a growing superannuation gap that could leave them struggling to live comfortably in their later years. The gap is so large, in fact, it\u2019s being called a “retirement disaster” for renters. So, what\u2019s going on, and why are so many Australians facing a bleak future?<\/p>\n\n\n\n
Research by Super Consumers Australia<\/a> has shed light on a troubling trend. Renters, it turns out, need almost double the superannuation savings of homeowners to achieve a comfortable retirement. A typical single retiree who rents would need around $659,000 in super to live comfortably, compared to just $322,000 for someone who owns their home. For couples, the disparity is even more significant, with renters needing a combined $786,000, while homeowners need just $432,000.<\/p>\n\n\n\n This is all based on actual spending patterns and lifestyles of retirees in Australia today. It\u2019s easy to brush this off as a small discrepancy, but the numbers are worrying. Renters are already stretched thin trying to manage the high cost of living, and when you throw in the need for more super to retire comfortably, it\u2019s clear we have a real problem on our hands.<\/p>\n\n\n\n The problem doesn\u2019t end with just saving more money. Renters are spending a significant portion of their income on rent. In fact, they\u2019re spending 30 to 47 percent more than homeowners just to maintain the same standard of living, reports Yahoo Finance<\/a>. According to the research, renters need between one-and-a-half to three times as much superannuation as homeowners to achieve the same lifestyle in retirement. And to make matters worse, Commonwealth Rent Assistance hasn\u2019t kept pace with rising rental prices.<\/p>\n\n\n\n For many, this means they\u2019re still classified as being in rental stress, despite receiving the assistance.<\/p>\n\n\n\nThe Real Strain of Rent<\/h2>\n\n\n\n