Retirement costs are rising –four practical steps you can take to stay on track

From the weekly grocery shop to insurance bills and fuel prices, the cost of living has changed significantly over recent years – and that’s changing how much Australians may need to retire comfortably.

According to the Association of Superannuation Funds of Australia’s (ASFA) December 2025 Retirement Standard, the super balances needed for a comfortable retirement have reached their highest levels on record, a reflection of ongoing inflation and those ever-increasing everyday expenses. 

ASFA’s updated comfortable retirement balances for homeowners aged 67 are now $630,000 for singles (up from $595,000), and $730,000 for couples (up from $690,000) – and that’s assuming you own your own home.

This increase marks the first time ASFA’s total balances have increased in three years.

What is the ASFA Retirement Standard?

ASFA’s Retirement Standard is widely used as a guide to help Australians understand what retirement might cost in today’s dollars and how much you need to retire comfortably. It looks at typical spending across essentials like housing, food and healthcare, as well as lifestyle choices such as travel, transport and leisure.

A “comfortable” retirement is described as one that allows people to enjoy a good standard of living day-to-day, including having private health insurance, running a reliable car, catching up with friends and enjoying the occasional holiday – without having to constantly weigh up every expense.

Why has the retirement benchmark increased?

ASFA notes that higher living costs have played a major role in pushing retirement targets up. Everyday expenses – like groceries, insurance and healthcare – now require more savings for retirees to maintain the same lifestyle over time. 

But it’s important to remember that these benchmarks are just that – benchmarks. Retirement isn’t a one-size-fits-all situation, and your retirement needs will be personal to you and influenced by how you live, your health, housing and whether you receive the Age Pension. These benchmarks offer a useful way to stay informed – not a reason to panic or make hasty decisions.

What does this mean for me and my retirement?

Seeing the necessary retirement benchmarks rise can feel unsettling – especially when everyday costs already feel harder to keep up with. But they’re not a judgement on how you’re doing, they’re simply a way to understand how the cost of living is changing and how that might shape retirement over time.

Plus, there are lots of things you can do to help you feel more prepared, in control and more confident in your future.

How can I boost my super?

No matter where you’re starting from, small, consistent actions are a simple way to get your super back on track. 

1. Check your balance and see if you’re on track: A quick check in can help you understand how your super is tracking against your goals.  
Try this: Try out our Retirement Needs calculator to see how much you might need in retirement and how it compares to ASFA’s benchmarks, then log into your super fund to see how far you are off from your target. AMP Super members can easily log into My AMP to see where they stand.

2. Find and consolidate your super: The Australian Tax Office (ATO) reports that about 4 million Australians have multiple super accounts as of June 2025. If you’ve changed jobs over the years, you may have super in more than one place. Bringing your super together can make it easier to manage and may help reduce duplicate fees. 
Try this: AMP Super members can search for lost super and consolidate in My AMP, alternatively the ATO has an online service for anyone to check for multiple super accounts.

3. Get advice: Sometimes a little guidance from the experts can be the small push you need to make a big difference. While financial advice can be expensive, super funds are increasingly offering more support so that customers can better understand their super, investment options, insurance, contributions and feel confident about next steps. 
Try this: AMP Super members have access to 24/7 free Digital Financial Advice, which includes personalised digital Super Projection, Contributions Strategy advice, Investment Strategy advice, as well as free conversations with AMP Advisors and Super Coaches to explore further.

4. Consider extra contributions where it makes sense for you: Whether you make occasional extra contributions or larger top-ups as retirement approaches, additional contributions play an important role in boosting your super for retirement, thanks to compounding returns. You could salary sacrifice a portion of your before tax wage, maximise tax benefits through voluntary contributions or simply redirect your $18 monthly streaming service fee into your super as after-tax contribution which could grow to more than $8000 over the long term.* 
Try this: Get up to speed on the types of voluntary contributions and their caps so you can work out what will work best for your situation.

How can AMP Super help me take the next step with confidence?

Whether retirement is decades away or just around the corner, understanding how much you might need in the future can help you make informed decisions today. No matter where you are on your retirement journey, having the right tools, advice and support can make a real difference. At AMP Super, we’re here to help you take the next step with confidence.