Grim figures reveal ‘retirement catastrophe’ looms for hundreds of thousands of Aussies – what it’s essential know

A ‘retirement disaster’ is looming for millions of Aussies after a new study revealed the astronomical amount renters need to retire comfortably. 

Super Consumers Australia’s 2026 Retirement Savings Targets for Renters has revealed grim new projections for future retirees. 

Based on the spending and lifestyle of pensioners, the figures revealed a typical single renter would need $659,000 in super to retire comfortably. 

Couples who rent need a combined $786,000, which is in stark contrast to their home-owning counterparts who only need a combined $432,000. 

Super Consumers Australia chief executive Xavier O’Halloran said the figures represented a potential ‘retirement disaster’. 

Mr O’Halloran called for government intervention, claiming the Minister for Social Services Tanya Plibersek needed to address the matter urgently. 

‘Telling renters to simply “save more” isn’t the solution to this problem. Long-term solutions need to focus on getting more people into affordable housing,’ he said. 

‘But we’ve got a crisis facing retirees right now, Commonwealth Rent Assistance has not kept pace with actual rents.’

New figures have revealed a typical single renter would need $659,000 in super to retire comfortably (pictured, queues for a rental inspection)

Couples who rent need a combined $786,000 to retire comfortably which is in stark contrast to their home-owning counterparts who only need a combined $432,000 (stock)

More than 325,000 pensioners were receiving Commonwealth Rent Assistance in June 2025, according to data from the Australian Institute of Health and Welfare. 

However, 105,000 people were experiencing rental stress, spending more than 33 per cent of their income on rent, even with rental assistance. 

As Australia’s housing crisis worsens with ever-increasing rental costs, those who rent in retirement need to spend 30 to 47 per cent more than homeowners.

That means, retired renters require between one-and-a-half and three times more super than homeowners to maintain the same standard of living.

Mr O’Halloran added the new analysis exposed the shortfall within Commonwealth Rent Assistance which is failing to keep up with the country’s cost of living.

For a single person in a capital city, rent assistance amounts to $5,600.40 annually, while average rent costs about $19,700.

Over the 12 months from September 2024, Commonwealth Rent Assistance increased by just 2 per cent, compared to a 4.5 per cent rise in rent costs.

‘We need systemic change, not just advice to save more,’ Mr O’Halloran said. 

The figures revealed a typical single renter would need $659,000 in super in order to comfortably retire, while couples who rent would need a combined $786,000 (pictured)

Super Consumers Australia chief executive Xavier O’Halloran said the figures represented a potential ‘retirement disaster’ (stock)

‘The government must increase Commonwealth Rent Assistance, link it to rent CPI, and invest in housing designed for older Australians.’

CEO of advocacy group Housing for the Aged Action Group, Fiona York, said retirees who rent are being left behind. 

‘The Australian retirement system is built on the expectation that older people will own a home at the time of retirement,’ Ms York said.

‘However, the number of older renters has risen by 73 per cent over the past decade.

‘Living in expensive and poor quality homes is impacting the health and wellbeing of older renters, and preventing their ability to age well and with dignity.’

Ms York called for more public housing, reform housing-related tax concession, cap rent increase and raise the rate of income support payments. 

The Australian Council of Social Services said government intervention was needed to curb homelessness for lower income earners as they approach retirement. 

The report highlighted three actions the government must take to prevent homelessness and ensure Australians can afford a ‘decent’ home. 

Super Consumers Australia chief executive Xavier O’Halloran called for government intervention, claiming the Minister for Social Services Tanya Plibersek (pictured) needed to address it as a matter of urgency

First, raise the lowest income support payments, such as Jobseeker and Youth Allowance, to at least $589 per week.

Second, substantially increase the maximum rates of Rent Assistance so they reflect the true cost of renting today.

Finally, set and fund a target to boost social housing nationally to at least its historical level of 6 per cent of homes within a decade, and 10 per cent within two decades, to ease housing stress.