Rising living costs and higher deeming rates mean singles now need around $630,000 and couples $730,000 in super to fund a comfortable retirement, according to updated ASFA benchmarks.
2 March, 2026
Super needed for a comfortable retirement
First Financial Team
Cost-of-living increases are impacting across the board, including how much is enough for a comfortable retirement. With everything from groceries to insurance and fuel increasing, so is the amount you need to live your glory days relatively well. For the first time since 2023, ASFA Retirement Standard recommended that homeowners aged 67 now need $630,000 in super for singles and $730,000 for couples to fund a comfortable retirement. That’s up from $595,000 and $690,000, respectively.
So what’s changed? And more importantly, what does it mean for you?
Let’s unpack the shift and how First Financial can help you turn these new benchmarks into a clear, achievable retirement plan.
Why have the numbers gone up?
There are two key drivers behind the jump in recommended super balances:
1. The age pension isn’t keeping pace
While the age pension is indexed, it hasn’t kept up with the real-world cost increases retirees are facing. Retirees tend to spend more on essentials, and those essentials have risen sharply.
Over the past 12 months
- Electricity increased by 21.5%
- Coffee and tea rose 15.3%
- Beef climbed 10.8%
- Domestic travel increased 9.6%
- Medical and hospital services rose 4.3%
For homeowners aged 65 and over, the annual budget required for a comfortable retirement is now:
- $54,840 per year for singles
- $77,375 per year for couples
That represents a 3.8% increase over the year.
When living costs rise faster than pension adjustments, retirees need to draw more heavily on their own super.
2. Higher deeming rates
Another shift is the increase in deeming rates, the assumed rate of return Centrelink applies to your financial assets when assessing age pension eligibility.
From 20 March 2026:
- The lower deeming rate will rise to 1.25%
- The upper deeming rate will rise to 3.25%
When deeming rates increase, your “assessed income” may rise, even if your actual investment returns haven’t changed. That can reduce your age pension entitlement and increase reliance on your super savings
In simple terms, you may need more of your own money to maintain the same lifestyle.
Is there any good news in this change?
While the target numbers have increased, there’s also positive news. Super funds have delivered strong returns in recent years:
- 9.9% in 2023
- 11.4% in 2024
- 9.3% in 2025
That’s nearly 35% cumulative growth over three years, well ahead of inflation. The Superannuation Guarantee is now at 12%, meaning Australians are contributing more than ever into their retirement savings. The system is working, but an individual strategy should be a high priority.
“The real question isn’t ‘Do I have enough?’ — it’s ‘What’s my strategy from here?’”
What does all this mean for couples and singles?
The headline figures can feel confronting. Seeing that you now “need” $630,000 or $730,000 may cause anxiety, especially if you’re unsure where you stand. But these benchmarks are guides, not guarantees.
Your required retirement balance depends on:
- Whether you own your home
- Your lifestyle expectations
- Travel plans
- Health needs
- Investment strategy
- Access to a part or full age pension
- Tax efficiency in retirement
For some people, a comfortable retirement may require less than the benchmark. For others, particularly those who plan to travel extensively or retire early, it may require more. The key is personalised planning.
How our team at First Financial can help couples and singles
Our financial advisors assess retirement planning as an individual long-term strategy. It is never and shouldn’t be about chasing numbers. We take a holistic approach, starting with:
Reviewing and understanding where you stand. We review your current super balance, contributions, investment structure, and projected retirement age. Using updated ASFA benchmarks as a reference point, we calculate whether you’re on track or how far off you may be.
Model different scenarios. What happens if you retire at 60 instead of 67? What if you downsize your home? How will higher deeming rates affect your age pension entitlement? We run detailed projections so you can see the long-term impact of decisions before you make them.
Optimise contributions. With the Superannuation Guarantee now at 12%, additional strategies like salary sacrifice, personal deductible contributions, or spouse contributions may help accelerate your progress.
Structure your retirement income. Retirement isn’t just about accumulating super, it’s about turning it into tax-effective income. We help structure account-based pensions, manage drawdown rates, and coordinate super with Centrelink entitlements.
Provide ongoing adjustments. As ASFA’s latest update shows, benchmarks change. Markets shift. Legislation evolves. A strong retirement plan is regularly reviewed and refined.
The increase to $630,000 for singles and $730,000 for couples signals a shift in economic conditions, but it is not a reason to panic. Working with your First Financial advisor, together we ask the right question, which isn’t “Do I have enough?” It’s “What’s my strategy from here?
If you’d like to understand how these new retirement benchmarks apply to your personal situation, the team at First Financial can help you build a structured, realistic pathway toward the retirement lifestyle you want. Retirement planning isn’t about hitting someone else’s number. It’s about funding your future on your terms.
“Retirement planning isn’t about hitting someone else’s number. It’s about funding your future on your terms.”
The team at First Financial comprises financial experts who help hundreds of Australians retire well and make informed, intelligent financial decisions. We cover everything from retirement and financial advice, investment and wealth management, superannuation and SMSF, insurance, tax, aged care, legal and lending services. Contact us for holistic, well-rounded financial management strategies.
Key Takeaways
The age pension has not kept pace with increases in essentials such as electricity, groceries and travel, placing more pressure on personal super savings.
Strong super fund returns and the increase of the Superannuation Guarantee to 12% are positive signs, but individual strategy remains critical.
The benchmark figures are guides only — your ideal retirement balance depends on your lifestyle goals, home ownership, health needs and access to the age pension.
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FAQs
What is the new super balance recommended for a comfortable retirement?
ASFA now recommends $630,000 in super for single homeowners and $730,000 for couples aged 67 to achieve a comfortable retirement. These figures have increased from $595,000 – $690,000, respectively. The rise reflects higher living costs and changes to pension settings.
Why have the recommended super amounts increased?
The main drivers are rising living costs and higher deeming rates used to assess age pension eligibility. Essentials such as electricity, groceries and travel have increased significantly over the past year. At the same time, pension adjustments have not kept pace with these real-world costs.
How much income is considered ‘comfortable’ in retirement?
For homeowners aged 65 and over, a comfortable retirement now requires $54,840 per year for singles and $77,375 per year for couples. This represents a 3.8% increase over the year. These figures are designed to support a lifestyle that includes discretionary spending such as dining out and domestic travel.
What are deeming rates, and why do they matter?
Deeming rates are the assumed returns Centrelink applies to your financial assets when calculating age pension entitlements. From 20 March 2026, the lower rate will rise to 1.25% and the upper rate to 3.25%. Higher deeming rates can reduce your pension, even if your actual investment returns have not changed.
Is there any positive news for retirees?
Yes, super funds have delivered strong returns in recent years, with cumulative growth of nearly 35% over the past three years. The Superannuation Guarantee has also increased to 12%, meaning Australians are contributing more to retirement savings. While benchmarks have risen, the system continues to support long-term growth.
Do I really need to reach the full benchmark amount?
Not necessarily, as the ASFA figures are guides rather than guarantees. Your ideal balance depends on factors such as home ownership, lifestyle goals, travel plans, health needs and pension eligibility. Personalised planning is key to understanding what is right for you.
How does First Financial help clients plan for retirement under the new benchmarks?
First Financial takes a holistic approach, reviewing your current super balance, contributions, investment structure and retirement timeline. They model different scenarios, including early retirement or downsizing, to show the long-term impact of your choices. This gives you clarity and confidence about your next steps.
How can First Financial help maximise retirement income?
The team helps optimise contributions through strategies such as salary sacrifice and spouse contributions. They also structure tax-effective retirement income streams, manage drawdown rates and coordinate super with Centrelink entitlements. Ongoing reviews ensure your strategy adapts as markets, legislation and benchmarks change.