If your retirement savings don’t feel like they stretch as far as they once did, you’re not alone – and you’re not wrong. The cost of living has quietly shifted the goalposts, and new figures show Australians now need significantly more in super to enjoy a comfortable retirement. For many over-60s, it’s prompting a fresh look at something long overlooked: the value sitting in their own home.
There’s a quiet reality hitting retirees right now – and it’s not just about rising grocery bills or power prices.
It’s the growing gap between what you have … and what you actually need.
Fresh figures from the Association of Superannuation Funds of Australia show the benchmark for a “comfortable” retirement has jumped again. A couple aged 67 now needs about $730,000 in super, while singles need around $630,000.
That’s a significant lift – and it comes after years where many thought the target had stabilised.
The reason is simple: the things retirees spend the most on are rising fastest. Food, health care, insurance and energy are all pushing higher, and they’re not easing any time soon.
For many older Australians, the Age Pension isn’t bridging the gap either.
Changes to deeming rates mean your assessed income can rise on paper – even if your investments aren’t earning more – potentially reducing your pension payments. It’s a technical change, but the impact is very real when it hits your fortnightly income.
So where does that leave you?
For a growing number of retirees, the answer lies much closer to home – literally.
Australia has one of the highest home ownership rates in the world among older people. More than 80 per cent of those aged 65 to 74 own their home, and collectively, retirees are sitting on an estimated $1.3 trillion in housing wealth.
That’s a staggering figure.
Yet for decades, that wealth has largely been treated as “untouchable” – something to pass on, rather than draw on.
Now that thinking is starting to shift.
Financial experts are increasingly talking about the home as a “fourth pillar” of retirement income, alongside super, the Age Pension and personal savings. It’s not about forcing anyone to use it – but about recognising it as part of the bigger financial picture.
And for many, it could be the difference between scraping by and living comfortably.
One option gaining more attention is a reverse mortgage.
This allows homeowners over 60 to access part of their home’s value as a loan, while continuing to live in the property. Modern products include safeguards like the No Negative Equity Guarantee, meaning you can’t end up owing more than your home is worth.
But it’s not a decision to take lightly.
The interest compounds over time, reducing the value of your estate, and it can affect what you leave behind for family. That’s why financial advice – and open conversations with loved ones – are essential before making any move.
Still, the broader message is clear.
If your super balance falls short of the latest benchmarks, you’re far from alone. In fact, you’re in the majority.
What matters now is understanding all your options.
That includes looking beyond super and the pension, and taking a realistic view of your total financial position – including your home.
Because retirement planning isn’t just about what you’ve saved.
It’s about how you use everything you have.
And in today’s environment, that might mean thinking differently about the place you call home.
Chris Moutzikis is the Co-Founder and Chief Executive of Money At 60
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