How much does it take to retire in comfort? According to the Association of Superannuation Funds of Australia, a single homeowner aged 65 to 84 now needs $56,166 a year, and a couple needs $78,998. The full age pension pays a single person $32,180, leaving a gap of about $24,000. The latest figures, for the June quarter of 2026, sharpen the debate about the pension, rent assistance and what super has to do.

The new numbers

The ASFA Retirement Standard sets two budgets for retirees aged 65 to 84: "comfortable" and "modest". The June quarter 2026 figures were released on 30 October.

For homeowners, a comfortable retirement costs $56,166 a year for a single person and $78,998 for a couple.

A modest retirement for homeowners costs $36,548 for a single and $52,690 for a couple.

For renters, ASFA puts a modest retirement at $51,418 for a single and $69,376 for a couple. The comfortable figures quoted are for homeowners.

How far the pension falls short

The full age pension is $32,180 a year for a single and $48,516 for a couple. With rent assistance, those figures rise to $38,014 and $54,017. Both are indexed twice a year.

Comparing the two sets of numbers shows the size of the gap.

  • Single homeowner: $56,166 minus $32,180 is $23,986 a year short of comfortable.
  • Couple homeowners: $78,998 minus $48,516 is $30,482 a year short.

Renters are in a tighter spot. Even with rent assistance, a single renter on the full pension falls $13,404 short of ASFA's modest budget, and a couple falls $15,359 short.

That is the key point in the renter figures: the shortfall is against the modest standard, not the comfortable one.

The comparison also shows how much home ownership shapes retirement. A single renter's modest budget of $51,418 is not far below a single homeowner's comfortable budget of $56,166. Put another way, a renter needs almost as much to live modestly as a homeowner needs to live comfortably. That suggests housing costs drive much of the difference, and it helps explain why rent assistance features so heavily in the argument over whether the pension is adequate.

What the industry and the government say

ASFA chief executive Mary Delahunty said that "a comfortable retirement is not a luxury lifestyle".

She also said: "Superannuation is essential to providing a more comfortable lifestyle than what is possible on the pension alone."

A spokesperson for Minister Tanya Plibersek said that the full single pension has risen by more than $6,500 a year since Labor took office. The spokesperson also pointed to up to $2,000 a year more in rent assistance and $7.70 medicines.

Reporting included retirees struggling with costs, among them a couple living in a caravan in outer Sydney and a retiree who moved to Batam, in Indonesia, where they pay $180 a week in rent.

Where super, and tax, come in

ASFA's message is that super is meant to Fill the gap between the pension and a comfortable budget. That is where the tax treatment of super does a lot of the work.

Under long-standing rules, people aged 60 and over generally receive payments from a taxed super fund tax-free. Earnings on Assets supporting a retirement-phase pension are also generally tax-exempt within the fund, subject to the transfer balance cap.

For most retirees, then, a dollar drawn from super is a dollar in hand. That makes super income worth more, after tax, than the same amount of wages or Investment income held outside super might be.

At the very top end, the rules have changed. Division 296 has applied from 1 July 2026, with an additional tax on earnings linked to super balances above a $3 million threshold. That affects a small group and has no bearing on the typical retiree trying to reach ASFA's comfortable standard.

Hypothetical example: Margaret, 67, owns her home outright and receives the full single age pension of $32,180. To reach ASFA's comfortable budget of $56,166, she would need about $23,986 a year from super or other savings. Over 20 years, from 65 to 84, that adds up to $479,720 in today's dollars. This simple sum ignores investment returns, indexation, changes in pension entitlements as her savings fall, and her own spending, so it is not a target. It does show why the size of a super balance at retirement matters.

In practice, many retirees receive a part pension alongside super drawdowns, because the means tests reduce the pension as assets and income rise. The interaction between the two is complex.

Watching the system as well as the balance

Retirement outcomes also depend on how well funds look after members. ASIC's REP 844, released on 2 November, reviewed how 45 super trustees use complaints. It found 14 of them had identified no systemic issues from complaints over two years, and close to a quarter did not regularly analyse complaints data, even though this is an enforceable requirement.

ASIC Commissioner Simone Constant described complaints as "the canary in the coalmine for trustees".

For retirees, the lesson is practical. If something goes wrong with a payment or a statement, a formal complaint to the fund is the starting point, and the Australian Financial Complaints Authority is the next step if it is not resolved.

Key dates and what to watch

  • Pension indexation: the age pension and rent assistance are indexed twice a year, so the gap to ASFA's budgets will shift.
  • ASFA's next quarterly update of the Retirement Standard, which will show whether living costs keep rising faster than the pension.
  • APRA's quarterly superannuation statistics for September 2026, due in November, which give a picture of balances and benefit payments across the system.
  • The policy debate: Treasurer Jim Chalmers has said the next election will be a referendum on super, and parties are arguing over how super should be taxed and accessed.

These figures are benchmarks, not personal targets. Spending needs vary widely with health, housing and location.