The dream of a comfortable retirement is a goal shared by most Australians. But what does “comfortable” actually cost today?
The Association of Superannuation Funds of Australia (ASFA) has released its updated retirement standards for the June 2025 quarter, and the numbers confirm what many are already feeling: the cost of retirement is rising. For couples aged around 65, the required annual budget for a comfortable retirement has hit $75,319, with singles now needing $53,289.
For those planning ahead, understanding these figures is crucial. Whether you are still building wealth or already retired, engaging a financial planner can help you align your finances with your lifestyle expectations.
Where have retirement budgets changed?
The latest standard highlights two major forces pushing up retirement budgets: the ongoing cost of essential services and the increasing demand for digital connectivity.
Digital expenses
One of the most clear shifts is the full integration of digital essentials into the retirement budget. The stereotype of the ‘digitally challenged’ senior is officially outdated. Today’s retirees, who grew up with mobile phones and email, expect and use the same quality of connectivity they enjoyed while working.
As a result, the retirement standard now includes budgeting for items like:
- A fast, reliable NBN connection
- A computer and smartphone (like an iPhone)
- Generous data allowances and streaming services
According to ASFA, these digital essentials now cost couples around $58 per week at the comfortable level. This is a big change that ensures the standard truly reflects modern life, where banking, communication, entertainment and even accessing government services all rely on high-quality digital access.
Cost of essentials
The other area where the standard has had to adapt to current living costs is in essentials. While a fall in fuel prices offered a small measure of relief in the June 2025 quarter (-3.4%), other essential services experienced above-inflation increases, putting upward pressure on budgets:
- Private health insurance: Premiums jumped by 3.7%, the largest quarterly increase since 2018. The comfortable standard includes top-level cover, so this rise has a significant impact.
- Electricity: Prices rose sharply by 8.1%, compounding a large increase in the previous quarter. The comfortable standard covers the use of air conditioning and all utilities without retirees having to constantly watch the meter, a privilege that is becoming more expensive.
- Food: The overall cost of food increased by 1.0%, driven by a 4.3% rise in fruit and vegetables and increases in meals out and takeaway.
This combination of higher non-discretionary costs and the expectation of digital expenses is what has pushed the comfortable retirement budget to its new high. These changes underline why consulting a Gold Coast financial adviser is valuable. A professional can help retirees and pre-retirees adjust budgets, manage rising costs and ensure your retirement planning strategies remain on track.
How the July 2025 superannuation guarantee increase helps
The superannuation guarantee (SG) increased to 12% from 1 July 2025. For a younger or middle-aged worker, this could mean a significant boost to your retirement savings.
ASFA estimates that a 30-year-old worker earning a median wage of $75,000 a year is now on track to accumulate $610,000 in super by retirement. This is above the ASFA figure required for a comfortable retirement, even accounting for rising living costs.
Voluntary contributions can further boost your retirement. By topping up superannuation, you can maintain your expected lifestyle, enjoy technology and leisure pursuits, and minimise the risk of having to downgrade in retirement.
However, the SG increase alone might not be enough to guarantee the specific retirement lifestyle you desire. This is where strategic financial planning can be helpful.
Practical tips for retirees and pre-retirees
- Review your financial plan regularly: Rising costs for essentials, health and digital services mean budgets need updating.
- Plan for digital expenses: Treat internet, mobile and streaming services as standard living costs.
- Use superannuation strategically: Take advantage of voluntary contributions to protect your lifestyle.
- Consult a professional: A financial planner or financial adviser on the Gold Coast can help manage your retirement savings and ensure you meet your lifestyle goals.
At RFS Advice, we specialise in helping clients handle these financial changes, whether you are planning for retirement or already in retirement. Our expert team of financial advisers on the Gold Coast can help you tailor a strategy that aligns your current financial position with your long-term retirement goals.
Frequently asked questions
According to the ASFA Retirement Standard for the June 2025 quarter, a couple aged around 65 needs $75,319 per year to achieve a comfortable retirement. A single person aged around 65 needs $53,289 per year. These figures assume the retirees own their own home.
According to the ASFA Retirement Standard, a Comfortable standard is focused on a dignified, healthy, and financially independent lifestyle, allowing for things like top-level private health insurance, regular leisure activities, confidence to use air conditioning, occasional restaurant meals, and one overseas trip every seven years. The Modest standard is a more basic lifestyle, limited to the essentials and occasional inexpensive activities.
While the 12% SG is a significant boost that puts the median wage earner on track for a comfortable retirement, it is not a guarantee for everyone. Your final super balance depends on your current age, income, investment returns and career trajectory.
General advice warning:
The information in this blog is of a general advice nature only and has been prepared without taking into account your personal objectives, financial situation or needs. Because of that, you should, before acting on the advice, consider the appropriateness of the advice, having regard to those things.
Plan for a retirement that matches your lifestyle. Speak with the experienced Gold Coast financial advisers at RFS Advice to review your budget, optimise your super and get personalised guidance for your retirement planning and long-term financial security.
