Insane amount of super Aussies need to retire comfortably – do you have enough?

The shocking amount Aussies need to have saved to retire comfortably has been revealed and it could spell disaster for the aging population.

Research from the Association of Superannuation Funds of Australia (ASFA) has found that the average single Australian aged 65 to 84 needs $52,085 a year to live comfortably in retirement.

That means they need to save more than $1 million to retire for 20 years.

The study also found that couples in the same age range would need $73,337 per year, adding more than $466,000 to the savings needed to live comfortably.

This is despite separate figures from ASFA showing the average Australian has just $549,000 in their super at age 65.

ASFA’s figures, which grew 0.9 percent in the second quarter of 2024 and 3.7 percent over the past 12 months, also assume retirees own their homes.

A breakdown of average monthly costs has also revealed how retired Aussies are being pushed to breaking point due to the rising cost of living.

ASFA CEO Mary Delahunty said it is “more critical” than ever for Aussies to have a secure retirement plan that doesn’t rely solely on superannuation.

Ms Delahunty added that Australians should still have access to “adequate retirement savings” for a comfortable retirement.

“Retirees are managing an increasingly difficult landscape where the cost of essential goods and services continues to rise,” she said.

‘Health, housing and transport are vital to their well-being, but the costs associated with these necessities are steadily increasing.’

It has been found that transport, housing and food put the most pressure on retirees’ weekly budgets.

While annual food inflation fell from 3.8 percent to 3.3 percent this quarter, fresh fruits and vegetables remain 3.7 percent higher than a year ago.

The increases resulted in the average Australian retiree 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 Australian, who will have just $549,000 in superannuation at age 65 (stock image)

Director of Tax Communications for H&R Block, Mark Chapman, said the research was another warning for Aussies to start taking their retirement seriously.

Mr Chapman said Aussies should think about their super as early as possible because it will have more time to grow by the time they retire.

“Although retirement may seem a long way away when you start your first job, it pays to take it very seriously from the start of your working life,” he said. Yahoo.

‘Investing in super is a good way to save for retirement, especially as you 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 this “has the potential to dramatically reduce the amount you can live on in your old age”.