New retirement saving targets released: How much should Australians have saved for retirement?

Retired couple on holiday

There is a mountain of information out there about how to prepare for retirement and what ways you can boost your superannuation savings. However, it all comes down to the age old question, how much money do you really need to have saved up for you to enjoy retirement? 

Super Consumers Australia (SCA) have just released updated targets to help provide a super savings guideline for Australians who are planning to retire. The targets have been updated to account for the current cost of living crisis, which is costing Aussies 3% to 8% higher to maintain their living standards than last year. The recent increase of the Age Pension has also been taken into consideration. 

Even though the cost of goods continues to creep up, there are some factors working to offset inflation for pre-retirees. The super guarantee has risen to 11%, giving workers an additional 0.5% of contributions from their employers. Alongside this, many super fund members enjoyed positive returns last year according to SCA. 

The recommended savings targets were created using ABS data based on what Australians actually spend in retirement. The below figures include low, middle and high cost lifestyles and work on the assumption that you own your own home and won’t be spending money on rent or a mortgage. Let’s get into what the SCA recommends you have saved for retirement. 

Savings targets for pre-retirees (Age 55-59)

If you live by yourself

Amount you wish to spend in retirement
(per fortnight)
Amount you wish to spend in retirement
(per year)
You need(ed) to save this much by age 65 on top of your income from the Age Pension
$1385 (low)
$36,000
$91,000
$1808 (medium)
$47,000
$317,000
$2269 (high)
$59,000
$777,000

If you live in a couple

Amount you wish to spend in retirement
(per fortnight)
Amount you wish to spend in retirement
(per year)
You need(ed) to save this much by age 65 on top of income from the Age Pension
$2000 (low)
$52,000
$116,000
$2654 (average)
$69,000
$425,000
$3346 (high)
$87,000
$1,037,000

Savings targets for current retirees (aged 65-69)

If you live by yourself

Amount you wish to spend in retirement
(per fortnight)
Amount you wish to spend in retirement
(per year)
You need(ed) to save this much by age 65 on top of your income from the Age Pension
$1192 (low)
$31,000
$76,000
$1577 (medium)
$41,000
$279,000
$2115 (high)
$55,000
$795,000

If you live in a couple

Amount you wish to spend in retirement
(per fortnight)
Amount you wish to spend in retirement
(per year)
You need(ed) to save this much by age 65 on top of income from the Age Pension
$1692 (low)
$44,000
$95,000
$2308 (average)
$60,000
$371,000
$3077 (high)
$80,000
$1,055,000

These savings targets factor in the income you could be getting from the Age Pension, which is a government payment you could be eligible for once you reach Age Pension age. SCA Director Xavier O’Halloran says that “Most people will access the Age Pension at some point in retirement. When combined with earnings from super, over the long-term the retirement system is designed to provide significant protection against cost of living increases”. 

If you are close to retirement and want to figure out your preservation age or learn about how you can withdraw your super, we have informative super resources on our site. 

Meanwhile, looking for somewhere to stash your savings? Check out some savings account options below.

Compare savings accounts

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can search our database of 274 savings accounts.
Last updated 25 July 2024 Important disclosures
  • Savings Account

    5.35% p.a. (for $0 to $250,000)

    4.75% p.a.(for $0 to $1,000,000)

    Yes up to $250,000

    Bonus variable rate is available for the first 4 months.

    Competitive introductory variable rate for first 4 months (on deposits up to $250,000). No account keeping fees to pay. Multiple 2024 Mozo Experts Choice Award winner.

    Compare
    Details
  • Mozo Expert Choice Badge
    Savings Maximiser

    5.50% p.a. (for $0 to $100,000)

    0.55% p.a.(for $0 and over)

    Yes up to $250,000

    For customers who have an Orange Everyday account, deposit $1000 into a personal ING account, make 5 eligible transactions and grow their nominated Savings Maximiser account each month.

    Great variable rate every month when you grow your balance each month in addition to other eligibility criteria. No ING fees to pay. Save even more with ING Everyday Round Up. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^

    Compare
    Details
  • Reward Saver Account

    5.25% p.a. (for $0 to $1,000,000)

    0% p.a.(for $0 and over)

    Yes up to $250,000

    Intro bonus rate of 5.25% for balances up to $1,000,000 for the first 4 months, reverting to 3.25%. Minimum deposit of $50 and no withdrawals.

    Introductory bonus rate for balances up to $1,000,000 for the first 4 months. Minimum deposit of $50 and no withdrawals. Start your account online in under 10 minutes and earn interest on balances up to $1,000,000 (T&Cs apply). No monthly account fees, helping you save smarter and faster.

    Compare
    Details
  • Savings+Bonus

    5.00% p.a. (for $0 to $250,000)

    2.00% p.a.(for $0 to $250,000)

    Yes up to $250,000

    Minimum $100 monthly deposit and no withdrawals to earn bonus interest each month.

    Earn a generous interest rate on your at-call savings (T&Cs apply). Interest is calculated daily and paid to you monthly. A $5 monthly membership fee will not apply if your total account balances with First Option Bank exceed $1,000 or you have a credit card or loan with the bank.

    Compare
    Details
  • Bonus Saver Account

    5.00% p.a. (for $0 to $250,000)

    0.05% p.a.(for $0 and over)

    Yes up to $250,000

    Bonus rate when at least $20 is deposited each month and five Visa Debit transactions are made each month using linked Glide transaction account.

    Start saving and earn interest with just a $20 deposit and make 5 eligible transactions each month. No fees or penalties for withdrawing money.

    Compare
    Details
  • Mozo Expert Choice Badge
    High Interest Savings Account

    5.75% p.a. (for $0 to $250,001)

    4.40% p.a.(for $0 to $250,001)

    Yes up to $250,000

    Bonus rate for the first 4 months from account opening

    Reward yourself with a higher rate for your good savings habits with the Rabobank High Interest Savings Account. No Account keeping fees. No minimum balance. Support Aussie farmers with every dollar you save.

    Compare
    Details