As of July 2025, a significant proportion of Australians are concerned about not having sufficient superannuation savings for retirement.
- Approximately 61% of Australians either believe they will not have enough superannuation to retire comfortably or are uncertain about their retirement savings adequacy.
- Only about 30% of Australians currently have sufficient superannuation balances to support a comfortable retirement, as per the standards set by the Association of Superannuation Funds of Australia (ASFA).
- Around 23% of Australians acknowledge they do not have enough superannuation or other investments to support themselves in retirement.
- Two-thirds of Australians expressed fear that they will not have adequate financial resources to retire, despite the superannuation system being in place for over 30 years. (source:findex.com.au)
Did you know?
- Average Retirement Age for Australian Males is 67 years old (source: Australian Bureau of Statistics)
- Average Life Expectancy for Australian Males is 81.1 (source: Australian Bureau of Statistics)
- Average Retirement Age for Australian Females is 63.5 years old (source: Australian Bureau of Statistics)
- Average Life Expectancy for Australian Females is 85.1 years old. (source: Australian Bureau of Statistics)
- Maximum Asset Threshold for a part Age Pension for couples are as follows:
- Homeowners: A combined asset value up to $1,059,000
- Non-homeowners: A combined asset value up to $1,317,000
- These thresholds determine eligibility for a part pension.
- To qualify for the full Age Pension, couples must have assets below
- Homeowners: $481,500
- Non-Homeowners: $739,500 (source: Services Australia)
- As of July 2025, the maximum Age Pension payment for a couple who is a Homeowner is $1,732.20 per fortnight, which equates to approximately $45,037 per year. (source: SuperGuide)
- If your assets exceed this threshold (of $481,500, the pension reduces by $3 per fortnight for every $1,000 over the limit. The pension ceases entirely when assets reach $1,059,000.
- It’s important to note that the family home is exempt from the assets test, but other assets like superannuation, investments, and vehicles are included.
Gender Disparities:
There is a notable gender gap in superannuation balances, with women generally having lower
superannuation savings compared to men. This disparity contributes to a higher percentage of
women expressing concern over their retirement preparedness.
How to estimate the amount of income that you may need in retirement:
OECD Standard: The Organisation for Economic Co-operation and Development (OECD) adopts a
70% replacement rate as a standard for maintaining living standards in retirement. (Source:
fsc.org.au)
Government Review: The Australian government’s Retirement Income Review also recommends a
target replacement rate range of 65% to 75% of your pre-retirement income. (source: csc.gov.au)
General Benchmark: Financial planners and government reviews commonly suggest a replacement
rate of 65% to 75% of pre-retirement income for most Australians.
Based on these benchmarks, a couple can expect their post-retirement income to be approximately
25% to 35% lower than their pre-retirement income. For example, if a couple had combined earnings
of say, $200,000 annually before retiring, they would aim for a combined retirement income
between $130,000 and $150,000 per year.
It’s important to note that the ideal replacement amount can vary depending on individual
circumstances, such as lifestyle expectations, health care needs, and housing status. Some retirees
may require a higher replacement rate to maintain their desired standard of living, while others may
find a lower rate sufficient.
By way of comparison, as at July 2025;
- Approximately 20% of Australian retirees have an annual retirement income exceeding $50,000.
- Approximately 15% of Australian retirees have an annual retirement income exceeding $60,000 per annum.
- Approximately 5% of Australian retirees have an annual retirement income exceeding $85,000 per annum
Should you require further information in calculating a personalised replacement rate or planning
for retirement, please feel free to contact Peter Quinn by submitting an enquiry or calling us on +61
2 9580 9166 to book an obligation-free appointment.
The information in this document does not consider your personal objectives, financial situation or
needs, so you should consider its appropriateness regarding these factors before acting on it. It is
important that your personal circumstances are taken into account before making any financial
decision, and it is recommended that you seek assistance from your financial adviser.