The $1 Million Myth: Why Most Retirees Don’t Need Seven Figures
The idea that you need $1 million to retire comfortably is everywhere. It fuels anxiety among pre-retirees. The reality is different – and far less daunting.
The Facts
According to ASFA, the average balance at retirement is far below $1 million: around $361,500 for men and $289,000 for women.*
Yet surveys show most retirees report being “comfortable.” How?
The Role of the Age Pension
Around 71% of Australians over 65 receive some Age Pension, and more than 60% qualify for the full rate.**
Housing Matters
Home ownership reduces ongoing expenses dramatically, making retirement more affordable for homeowners than renters.
A More Realistic Target
ASFA’s Retirement Standard (2025) suggests:
- Singles need about $595,000
- Couples need about $690,000*
But many retirees need less, as the pension fills the gap.
Final Thought
The $1 million figure may grab headlines, but it doesn’t reflect reality. What matters is aligning your resources with your lifestyle goals – not chasing a mythical number.
References
- Association of Superannuation Funds of Australia (ASFA). Superannuation Account Balances by Age and Gender, 2024 Report.
- Association of Superannuation Funds of Australia (ASFA). Retirement Standard, March 2025.
** Australian Bureau of Statistics (ABS). Retirement and Retirement Intentions, 2023–24.
Disclaimer: This information is of a general nature only and does not constitute advice. It has been provided without taking account of your objectives, financial situation or needs. Because of this, we recommend you consider, with or without the assistance of a financial adviser, whether the information is appropriate in light of your particular needs and circumstances. Hendrie Financial Strategies is a corporate authorised representative of the Madison Financial Group Pty Ltd, Australian Financial Services License No 246679, ABN 36 002 459 001.
