1 In 4 Australians Don’t Have Enough Super Or Assets To Retire
A comfortable retirement in Australia costs $70,806 per annum for couples and $50,207 for singles
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Almost one in four Australians say they do not have enough superannuation or other investments to get by in retirement, according to a survey by Finder. When extrapolated to a population level, this indicates that 4.6 million people are facing up to a financially difficult future.
A further 27% said they were not sure if they would have enough in superannuation to retire. Just 17% said they were confident they would have enough wealth for retirement, while a further 22% said they would have enough in super but would cut back on spending.
One in 10 said their superannuation balance was too low but they had other investments that would provide enough income or capital to fund their retirement.
“Superannuation is something many Australians, including the younger demographic, don’t engage in enough,” said Sarah Megginson, Finder’s money expert. “It can be a sad case of ‘too little too late’ for many who realise that by the time they reach retirement age, their super balance will fall well short of the amount of money they will need.”
According to the Australian Retirement Standard, a ‘comfortable’ retirement costs $70,806 per annum for couples and $50,207 for singles. A modest lifestyle costs $45,946 and $31,867, respectively. The superannuation balances required for a comfortable retirement are $690,000 for couples and $595,000 for singles by age 67. For a modest lifestyle, both couples and singles need a superannuation balance of $100,000.
Currently, the full pension including supplements is $42,988 per annum for couples and $28,514 for singles. However, income and asset tests apply. A couple with their own home is eligible for the full pension if their combined assets (excluding their home) are worth less than $451,500 and they earn an annual income below $9,360. If they do not own a home, the threshold is $693,500. For a single homeowner, the asset limit is $301,750 and the income limit is $5,304. For single non-homeowners, the asset threshold is $543,750.
Ms Megginson said Australians needed to assess their superannuation carefully. “First, it’s essential to know how much you have in super and to consolidate your funds,” she said. “You pay fees for each fund you have – it’s like having your savings split across three savings accounts and paying account-keeping fees on all of them.”
Ms Megginson suggested workers contribute to their super through salary sacrifice or voluntary lump-sum payments. An earlier Finder survey conducted in June 2022 found 46% of Australians do not make additional contributions to super. In FY23 and FY24, taxpayers are allowed to contribute a total of $27,500 per annum concessionally (meaning less tax) incorporating compulsory super paid by their employers and other payments and benefits.
“For instance, if you salary sacrifice $1,000 over 12 months, you’d pay $150 on that income and $850 will go to super where it will be invested for your future. Otherwise, you’ll pay $325 tax on that money and have $675 in your bank account. Any income earned within your super is capped at a maximum tax rate of 15% per annum. If you currently pay say 32.5% tax, you’re ahead immediately.”
Megginson warned workers to compare their super fund’s fees to other super funds. “Make sure you aren’t stuck in a fund charging exorbitant fees and check regularly that your employer is paying your 11% Superannuation Guarantee contributions on time.”
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For self-employed Australians, navigating the mortgage market can be complex—especially when income documentation doesn’t fit the standard mould. In this guide, Stephen Andrianakos, Director of Red Door Financial Group, outlines eight flexible loan structures designed to support business owners, freelancers, and entrepreneurs.
1. Full-Doc Loan
A full-doc loan is the most straightforward and competitive option for self-employed borrowers with up-to-date tax returns and financials. Lenders assess two years of tax returns, assessment notices, and business financials. This type of loan offers high borrowing capacity, access to features like offset accounts and redraw facilities, and fixed and variable rate choices.
2. Low-Doc Loan
Low-doc loans are designed for borrowers who can’t provide the usual financial documentation, such as those in start-up mode or recently expanded businesses. Instead of full tax returns, lenders accept alternatives like profit and loss statements or accountant’s declarations. While rates may be slightly higher, these loans make finance accessible where banks might otherwise decline.
3. Standard Variable Rate Loan
A standard variable loan moves with the market and offers flexibility in repayments, extra contributions, and redraw options. It’s ideal for borrowers who want to manage repayments actively or pay off their loans faster when income permits. With access to over 40 lenders, brokers can help match borrowers with a variable product suited to their financial strategy.
4. Fixed Rate Loan
A fixed-rate loan offers repayment certainty over a set term—typically one to five years. It’s popular with borrowers seeking predictability, especially in volatile rate environments. While fixed loans offer fewer flexible features, their stability can be valuable for budgeting and cash flow planning.
5. Split Loan
A split loan combines fixed and variable portions, giving borrowers the security of a fixed rate on part of the loan and the flexibility of a variable rate on the other. This structure benefits self-employed clients with irregular income, allowing them to lock in part of their repayment while keeping some funds accessible.
6. Construction Loan
Construction loans release funds in stages aligned with the building process, from the initial slab to completion. These loans suit clients building a new home or undertaking major renovations. Most lenders offer interest-only repayments during construction, switching to principal-and-interest after the build. Managing timelines and approvals is key to a smooth experience.
7. Interest-Only Loan
Interest-only loans allow borrowers to pay just the interest portion of the loan for a set period, preserving cash flow. This structure is often used during growth phases in business or for investment purposes. After the interest-only period, the loan typically converts to principal-and-interest repayments.
8. Offset Home Loan
An offset home loan links your savings account to your mortgage, reducing the interest charged on the loan. For self-employed borrowers with fluctuating income, it’s a valuable tool for managing cash flow while still reducing interest and accelerating loan repayment. The funds remain accessible, offering both flexibility and efficiency.
Red Door Financial Group is a Melbourne-based brokerage firm that offers personalised financial solutions for residential, commercial, and business lending.
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