Comfortable retirement cost rises to $75,319

Cost of living increases are continuing to weigh on retirees and those approaching retirement, with the latest Association of Superannuation Funds of Australia (ASFA) Retirement Standard revealing couples aged around 65 now need $75,319 a year to fund a comfortable requirement.

The sum required for singles to enjoy a comfortable retirement now standard now stands at $53,289.

A big driver for the increases was private health insurance which jumped 3.7%, the largest quarterly increase since 2018.

ASFA noted that electricity prices rose 8.1% after a 16.3% increase the previous quarter, while fruit and vegetables rose 4.3%.

It said fuel prices provided some relief, falling 3.4 per cent due to lower global oil prices.

The ASFA analysis noted the following budget categories where there were significant price developments:

• There was a 1.0% increase in the cost of food. The main contributors to the rise were fruit and vegetables (+4.3%), meals out and take away foods (+0.7%), and non-alcoholic beverages (+2.2%).
• Clothing and footwear costs were up 2.6% in the quarter, with new season stock and ending of sale prices contributing to that.
• Automotive fuel prices on average were down by 3.4% in the June quarter due to lower global oil prices.
• International holiday travel and accommodation prices increased (+4.7%), due to an increase in demand for holiday travel to Europe at the start of their peak tourist season.
• Insurance overall fell 0.5%, the first quarterly fall since the March 2019 quarter. Lower reinsurance and claims costs have led to falls in insurance premiums across motor vehicle, house and home contents insurance

The analysis noted that the superannuation guarantee increase to 12% from 1 July 2025 was an important boost for Aussies’ retirement security.

“A 30-year-old worker with $30,000 in super and earning a median wage of $75,000 is now on track to achieve $610,000 in super by retirement. This is above the amount needed for a comfortable retirement,” it said.