Here’s what Super Consumer Australia’s new super targets mean for your retirement

Super Consumers Australia (SCA) has updated its retirement savings targets, refining the numbers it has published since 2022 to reflect the latest data on how retirees actually spend. The benchmarks aim to cut through the industry noise around how much superannuation is “enough.”

For decades, Australians planning for retirement have been presented with high savings targets—often in the range of half a million dollars or more. While figures such as those published by the Association of Superannuation Funds of Australia (ASFA) are widely used by the industry, SCA has consistently taken a different approach, focusing on spending patterns rather than aspirational goals.

“The number one question people ask is: ‘How much do I need to save for retirement?’ We wanted to provide a realistic, rule-of-thumb answer to that,” says SCA chief executive, Katrina Ellis.

Before joining SCA, Ellis spent 16 years as a regulator at APRA, including at least four focused solely on superannuation. She’s dedicated to ensuring the super system works for low- and middle-income earners.

Rather than promoting an idealised version of retirement, SCA bases its benchmarks on what retirees actually spend, using Australian Bureau of Statistics data to provide a clearer picture of real-world costs.

What retirement actually looks like at 65

For those who are 65 now—likely recently retired or transitioning into retirement—Super Consumers Australia estimates that a single person needs around $310,000 in super, while a couple needs $421,000 combined at the ‘middle spending level.’ 

This represents what 50% of retirees actually live on. SCA also provides figures for low and high spending levels, with all estimates assuming retirees own their home outright, have no significant assets outside of super, and rely on the age pension for about two-thirds of their income.

SCA also provides targets for 55-year-olds , giving those still a decade out from retirement a clearer picture of their own situation.

While some key super settings are already locked in, pre-retirees still have options—concessional contributions, catch-up super rules, and downsizer contributions all offer ways to improve financial security before leaving the workforce.

SCA doesn’t provide targets for younger generations, arguing that most aren’t focused on retirement savings yet.“Most people don’t start seriously thinking about their retirement savings until they’re about 10 years out. That’s why we focused on those just about to retire or within that 10-year timeframe - because that’s when they’re starting to wonder if they have enough.’”

There’s also the fact that so much can change in the decades between now and when younger generations will retire—economic conditions, government policy, and the fact that they will have had super for their entire working lives—making fixed targets less useful for them at this stage.

“Today’s retirees didn’t get the full benefit of the super system—many spent years with no contributions or lower rates. But younger generations have had compulsory super their whole working lives, so they should retire with more,” Ellis says.“And while that $300,000 figure will inevitably be higher by the time younger generations retire, it still shows them that their future targets might not be as high as they thought.”

Homeownership and financial stress in retirement

One major factor in these retirement targets is home ownership. Targets from both Super Consumers Australia and the Association of Superannuation Funds of Australia assume retirees own their homes outright, but with declining home ownership rates, that’s becoming less realistic. 

According to the Australian Bureau of Statistics (via ABC), outright home ownership among those aged 55–64 has fallen from 69% in 1996 to just 36% in 2021 . Meanwhile, Vanguard’s How Australia Retires report found that 32% of Gen X homeowners expect to retire with a mortgage, and of those, only 25% plan to pay it off with super.

For those still paying off a mortgage or renting in retirement, the SCA targets may not be enough.

Retiring with a mortgage

"Someone with a mortgage has way more options than someone who's renting. You could downsize if your home is no longer fit for purpose, use some super to pay it off if you have enough, or keep making repayments and factor that into your living costs," says Ellis

"So if you have a mortgage, one way to think about our targets is to add that amount to the super balance you'd need. For example, if you still owe $200,000 on your mortgage, instead of needing $300,000 at the middle level, you’d need around $500,000. Or, the equivalent would be looking at the higher-range target rather than the medium."

Retiring as a renter

For renters, the challenge is even greater. SCA’s internal research shows that 67% of retirees who rent experience financial stress, compared to just 20% of homeowners. However, rather than suggesting renters need dramatically more super, Ellis says this is a policy issue—not a savings issue.

“For renters, the solution isn’t more super—it’s better government support. Rent assistance hasn’t kept up with rising rents, and that’s the real issue.”

Would new targets help?

Still, it seems rent and mortgage costs do belong in these targets—if not baked into the figures, then at least as a separate line item. Like in big, red numbers. The reality is that for a growing number of Australians, housing costs won’t disappear at retirement. 

And while Ellis is right that adding those figures wouldn’t magically solve the problem, seeing them in black and white (or red) might push some to make extra super contributions while they still can, or to start thinking about downsizing and taking advantage of the downsizer contribution. 

And if nothing else, it might drive home the scale of the issue—enough to put pressure on policymakers to address it.

Bottom line

SCA’s updated benchmarks offer a clearer, evidence-based guide to retirement savings, cutting through industry noise with realistic, achievable figures. But they also highlight gaps in the conversation—especially around housing. Whether or not mortgage and rent costs belong in these targets, the reality is that for many Australians, these expenses won’t disappear at retirement.

Retirement isn’t just about hitting a super balance—it’s about having the right information to plan with confidence. SCA’s benchmarks give a more practical view of what retirees actually spend, but with falling homeownership and shifting financial pressures, super is only part of the picture. The real question is whether the system is keeping up with the way people actually retire.

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