Melbourne, 4 March: Australians want an average of $1.9 million to fund their retirement, a dramatic surge in expectations of the money needed for a comfortable retirement, new research has revealed.
The desire for a $1.9 million retirement fund is an average across 2,000 people surveyed for the Equip Super Financial Security Index. Their estimates were nearly double what Equip Super’s last survey found 18 months ago.
Compared to the views of superannuation experts, these retirement expectations appear to be unrealistically high. According to the Retirement Standard determined by the Association of Superannuation Funds of Australia (ASFA), a single person needs $630,000 and a couple needs $730,000 in super for a comfortable retirement lifestyle.
Equip Super’s Chief Experience Officer, Carrie Norman, said it was understandable that Australians want to ensure their retirement lifestyle, but they may need less in super than they think. “Getting professional advice and making a plan for retirement savings should reduce concerns and equip people to achieve the retirement outcomes they want.”
The jump in retirement savings ambition is most significant among younger generations, with Gen Zers stating they need a $2.5 million nest egg to retire comfortably, while older Boomers are setting their sights on $1.5 million.
The rising gap between age groups highlights how cost-of-living pressures and lifestyle aspirations are reshaping what younger Australians see as “enough” for retirement. Australians generally appear to be looking to a larger superannuation balance for financial security.
The survey also revealed rising concerns about the cost of living and economic pressures, with many respondents stating they had changed their retirement planning, pushing back their intended retirement dates by more than 6 years on average.
Economic pressures are driving sharply different goals across age groups. Despite their more ambitious targets for retirement savings, younger Australians are also planning to retire earlier.
Gen Z, who plan to retire on $2.5m target, want to retire at 60. Millennials are targeting $2.1m and see themselves retiring at 62. Gen X want to retire at 65 years with $1.85m, while
Boomers expect to retire at 67 and want $1.46m.
Despite the rising retirement savings goals, many Australians don’t have a retirement plan. Of those surveyed, 21% said they’ll “worry about it later” and 19% admitted they don’t know where to start to make a retirement plan. Gen Xers are the least prepared, with just over a third (37%), having engaged in retirement planning.
Carrie Norman said there was no one-size-fits-all answer to how much superannuation people should have, as spending habits, needs and retirement goals are unique.
“Given the financial pressure many households have been facing, clearly people are concerned about having the funds to ensure a comfortable retirement,” said Norman. “A retirement plan will ease those concerns.
“Having $2 million or more in super doesn’t reflect the reality for most Australians. The truth is that a fulfilling retirement can be achieved with substantially less. Super is a long-term investment, if members maintain their super balance at retirement, it can continue to be invested while allowing them to take advantage of tax benefits.
“People should engage with their super fund as early as possible for advice and planning to ensure a comfortable retirement,” she said.
Rather than just focus on super balances, it makes sense to look at the income stream needed through retirement, said Norman. “We want to equip members to achieve their retirement plans, with the option to draw their super as regular income payments, providing certainty and easing financial anxiety. Investments can be maintained whilst drawing an income and taking advantage of tax benefits.”
“Your super is only part of the picture. Many might also qualify for benefits such as the Age Pension, or be earning an income from part-time work.”
Norman advised consulting with a super fund and financial planner before setting targets, making financial sacrifices or delaying retirement.
The ASFA Retirement Standard calculates the cost of a ‘comfortable retirement’. It factors in the costs of essentials such as food, clothing, healthcare, and lifestyle expenses, and assumes you own your own home.
The Retirement Standard estimates that a couple needs an annual retirement income of approximately $77,000 to enjoy a comfortable retirement, while an individual needs an income of $55,000 a year. That equates to approximately $730,000 in super for a couple and $630,000 for an individual.
ENDS
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Equip Super manages $36.9 billion for over 135,000 members across both Equip Super and Catholic Super at 30 June 2025. Equip Super is a leader in the superannuation industry in bringing funds together through successful successor fund transfers and continues to look for new opportunities to grow the fund.
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