New retirement saving targets released: How much should Australians have saved for retirement?
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
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Savings Accelerator
3.55% p.a. (for $0 to $50,000)
2.85% p.a.(for $0 to $50,000)
Yes up to $250,000
New customers receive an introductory bonus 0.70% p.a. variable kick starter rate for the first 4 months on balances up to $500,000.
Enjoy the flexibility to access your funds with no monthly deposit requirements or lock-in terms. No ING fees to pay. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^
CompareCompareSavings Accelerator
Enjoy the flexibility to access your funds with no monthly deposit requirements or lock-in terms. No ING fees to pay. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^
- Maximum rate
- 3.55% p.a. (for $0 to $50,000)
- standard interest rate
- 2.85% p.a.(for $0 to $50,000)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- New ING personal savings customers receive an introductory bonus 0.70% p.a. variable kick starter rate for the first 4 months on balances up to $500,000. Reverts to variable ongoing rate.
- Access
- Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must link to a transaction account
Read reviews and learn more about ING savings accounts
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Online Savings Account
5.20% p.a. (for $0 and over)
1.00% p.a.(for $0 and over)
Yes up to $250,000
Bonus rate for the first 3 months from account opening.
Complement your banking with an introductory bonus rate offer. Earn additional bonus interest for the first 3 months. No minimum monthly deposit required to earn interest. No account keeping fees. No minimum opening balance. Manage your account 24/7 using the app.
CompareCompareOnline Savings Account
Complement your banking with an introductory bonus rate offer. Earn additional bonus interest for the first 3 months. No minimum monthly deposit required to earn interest. No account keeping fees. No minimum opening balance. Manage your account 24/7 using the app.
- Maximum rate
- 5.20% p.a. (for $0 and over)
- standard interest rate
- 1.00% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus rate for the first 3 months from account opening.
- Access
- BPay, Branch access, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Branch access is for deposits only. Must be linked to an Everyday Account, Home Loan or Credit Facility with this provider.
Read reviews and learn more about Newcastle Permanent savings accounts
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MoneyMAX Account
No Current Offer
4.70% p.a.(for $1 and over)
Yes up to $250,000
Unlimited access 24/7 via Banking App, Phone & Internet Banking. Interest is calculated daily and paid monthly. No transaction fees or monthly service fees. No minimum balance or withdrawal restrictions. Online access only.
CompareCompareMoneyMAX Account
Unlimited access 24/7 via Banking App, Phone & Internet Banking. Interest is calculated daily and paid monthly. No transaction fees or monthly service fees. No minimum balance or withdrawal restrictions. Online access only.
- Maximum rate
- No Current Offer
- standard interest rate
- 4.70% p.a.(for $1 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- n/a
- Access
- BPay, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Branch access for deposits only.
Read reviews and learn more about Unity Bank savings accounts
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Savings+Bonus
5.00% p.a. (for $1 to $250,000)
2.00% p.a.(for $1 to $250,000)
Yes up to $250,000
Minimum $100 monthly deposit and no withdrawals to earn bonus interest each month.
Enjoy bonus interest when you deposit $100 or more per month and make no withdrawals. Access your money at any time via internet banking or our mobile app. Maximum balance $250,000 to receive bonus interest.
CompareCompareSavings+Bonus
Enjoy bonus interest when you deposit $100 or more per month and make no withdrawals. Access your money at any time via internet banking or our mobile app. Maximum balance $250,000 to receive bonus interest.
- Maximum rate
- 5.00% p.a. (for $1 to $250,000)
- standard interest rate
- 2.00% p.a.(for $1 to $250,000)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $5.00
- Maximum rate conditions
- Minimum $100 monthly deposit and no withdrawals to earn bonus interest each month.
- Access
- -
- Minimum balance
- $1.00
- Other restrictions
- Must become a First Option Bank member to open an account.
Read reviews and learn more about First Option Bank savings accounts
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EasySaver Account
No Current Offer
3.70% p.a.(for $0 and over)
Yes up to $250,000
Enjoy a straight-forward variable savings rate with the Bendigo Bank EasySaver Account. Watch your savings grow without any monthly service fees to pay. Minimum opening balance of just $1. e-banking and phone banking anywhere, anytime. Branch access Australia wide, with 2 free branch withdrawals per month. No card access but transact online via e-banking or the Bendigo Bank app, through phone banking or at any branch.
CompareCompareEasySaver Account
Enjoy a straight-forward variable savings rate with the Bendigo Bank EasySaver Account. Watch your savings grow without any monthly service fees to pay. Minimum opening balance of just $1. e-banking and phone banking anywhere, anytime. Branch access Australia wide, with 2 free branch withdrawals per month. No card access but transact online via e-banking or the Bendigo Bank app, through phone banking or at any branch.
- Maximum rate
- No Current Offer
- standard interest rate
- 3.70% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- n/a
- Access
- BPay, Branch access, Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- -
Read reviews and learn more about Bendigo Bank savings accounts
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Hi Saver
5.00% p.a. (for $0 and over)
0.50% p.a.(for $0 and over)
Yes up to $250,000
Bonus rate for the first 4 months from account opening
Earn bonus interest on your savings for the first four months from the date you open the account, even if you make withdrawals. Transfer or make payments using our mobile app or internet banking. No minimum balance required. Rest easy knowing total deposits up to $250,000 are protected by the Financial Claims Scheme.
CompareCompareHi Saver
Earn bonus interest on your savings for the first four months from the date you open the account, even if you make withdrawals. Transfer or make payments using our mobile app or internet banking. No minimum balance required. Rest easy knowing total deposits up to $250,000 are protected by the Financial Claims Scheme.
- Maximum rate
- 5.00% p.a. (for $0 and over)
- standard interest rate
- 0.50% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus rate for the first 4 months from account opening
- Access
- BPay, Branch access, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- -
Read reviews and learn more about P&N Bank savings accounts
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^See information about the Mozo Experts Choice Savings Account Awards
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