‘Figure just thrown around': Super myth busted
Older Australians are likely closer than they think to having a comfortable retirement, with workers often overestimating just how much they will need before they finish their careers.
The majority of workers believe they will need at least $1m in their superannuation fund in order to have a comfortable retirement, new research AustralianSuper research reveals.
AustralianSuper head of advice Ross Ackland said 94 per cent of retirees would finish their careers with far less than $1m in superannuation, and despite the fear-based narrative, that would still be enough to live a comfortable life.
'You might have heard you need $1m – it's the figure that's often thrown around as the financial retirement ideal, but the truth is, there's no one-size-fits-all,' he said.
'A comfortable retirement will look different for everyone.'
Figures released earlier in the year by Super Consumers Australia showed a single person needed about $310,000, while a couple needed $420,000 to achieve a 'medium lifestyle in retirement'.
But this has two major caveats; the retiree owns their own home and they go on the aged-based pension at some point throughout their retirement.
The Association of Superannuation Funds of Australia has also run the figures, saying singles living a modest lifestyle will spend $32,930 a year, again assuming the retiree owns their own home.
For Aussies wanting a 'comfortable' standard, singles need a higher amount of $51,814 and couples $73,031 a year.
This would require a single superannuation member to have $595,000 in their accounts, while couples need to have $690,000.
Retiree Warren Morrison said after a career in local government, banking and media, he was able to retire in 2022 at aged 64 with far less than 'a million bucks in super'.
'I worked out what I'd need day to day, figured out what brought me joy and built my retirement around that, eventually leaving the workforce with around $350,000 in superannuation,' he said.
'I'm not sitting still – I'm officiating weddings, hosting trivia nights, doing a bit of acting and even judging roller skating competitions.
'It's not about being rich, it's about being purposeful. I still have my coffee and cake with mates. I'm careful, but I'm not missing out.'
AustralianSuper points out funds in superannuation are just part of what retirees will have when they finish work, with savings, other assets, lifestyle expectations and the pension all playing a role in how Australians will be able to spend the latter years of their lives.
'We know superannuation is incredibly important and encourage members to make extra contributions where appropriate, but super is only one piece of the retirement puzzle,' Mr Ackland said.
'It's also important to remember that our superannuation system is still maturing and will continue to deliver stronger outcomes for more Australians.'
Compulsory super was only introduced in 1992 and at much lower contribution rates than we have today.
The superannuation guarantee has also been on the rise in recent years and, from July 1, 2025,
will climb to 12 per cent of a worker's income.
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