The Association of Superannuation Funds of Australia (ASFA) has recently increased the ASFA standard to a record high, reflecting the pressure of increased living expenses and the impact this is having on retirees’ super savings.
The amount required for a comfortable retirement has increased to $630,000 for singles, up from $595,000, and $730,000 for couples, up from $690,000. This is the first time these figures have increased in three years.
ASFA has stated that retirees’ living costs have risen, while the age pension has not kept pace. Categories in which retirees tend to spend more have increased faster than the average rate of inflation, with electricity bills up 21%, domestic travel up 9.6% and property rates up 6.2%, to name a few.
ASFA retirement standard reaches a new high
The increase highlights the growing pressure many Australians face when planning for retirement. As the cost of living continues to rise, the amount needed to fund a comfortable retirement is also increasing.
However, there is some good news. Australians are reaching retirement with larger super balances than ever before, helping them meet this increasing challenge. This is partly due to the strong returns delivered by super funds over the past few years, with the average balanced fund delivering cumulative growth of nearly 35% over the last three years.
The Superannuation Guarantee has also been steadily rising since 2020 and is now 12%. Awareness of the importance of retirement planning is increasing as well, with super funds, advisors and organisations such as ASFA regularly sharing information to help Australians assess whether they are on track to meet recommended balances based on their age and current super balance.
Deeming rates and retirement income
On 20 March 2026, deeming rates were increased again, following another adjustment in September 2025, which ended a five-year pandemic-era freeze.
The deeming rate is the assumed rate of return applied to financial assets when assessing eligibility for the age pension. This can increase a person’s assessed income, even if their actual investment returns have not increased.
This places greater emphasis on making sure superannuation investments are performing and balances are growing over time. Overall, the super system continues to support its broader intention of providing a generous, concessionally taxed environment for Australians to save for retirement and become less reliant on the age pension over time.
