Prime Time with Bec Wilson NEW DATA: How much do you need to save for retirement?
Dec 17, 2025
In this enlightening discussion, Xavier O'Halloran, CEO of Super Consumers Australia, dives deep into retirement savings targets for Australians. He reveals essential figures: $322k for singles and $432k for couples to live comfortably. Xavier explains how spending habits shaped these targets and emphasizes the ongoing role of the age pension as a financial pillar. For renters, he highlights a staggering need of nearly double the savings, driving the conversation toward necessary policy fixes. Listeners gain valuable tips on budgeting and planning for a secure retirement.
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Realistic Retirement Targets
- Super Consumers Australia found median retired spending is about $44k for singles and $64k for couples.
- They estimate $322k for singles and $432k for couples in super, assuming eligible age pension top-ups.
Age Pension Is A Major Income Source
- The targets assume retirees receive any age pension they're entitled to, which makes up a large share of income.
- For middle spenders the age pension covers roughly 67% of singles' and 70% of couples' retirement income.
Test Targets With Long-Term Simulations
- They simulated 25 years of returns and ran tens of thousands of market scenarios to build 90% confidence in the targets.
- Use long-term historical returns and Monte Carlo-style simulations to assess retirement income reliability.