Older Australians are calling for greater financial support as rising housing, healthcare and everyday living costs widen the gap between the age pension and what is required for even a modest retirement.
New retirement budget estimates show a single homeowner aged between 65 and 84 needs around A$36,548 a year for a modest lifestyle, compared with an annual age pension of about A$32,180.
For renters, the gap is significantly larger.
A single renter needs around A$51,418 a year for a modest retirement, while the pension including rent assistance provides roughly A$38,014.
A comfortable retirement for a single homeowner is estimated to require about A$56,166 annually.
Renters under greatest pressure
Housing has become one of the biggest dividing lines between Australians entering retirement.
People who own their homes outright are generally better placed to absorb rising food, energy and healthcare costs, while retirees still paying rent or a mortgage face substantially greater financial pressure.
Some older Australians are continuing to work because their pension and savings are no longer enough to meet expenses.
Others are reducing travel, entertainment and healthcare spending or moving to cheaper locations.
The pressure comes despite pension payments being indexed twice a year and increased rent assistance.
Higher petrol prices and specialist medical expenses are among the costs retirees say have become particularly difficult to manage.
Australia’s ageing population means the affordability of retirement will become an increasingly important economic issue.
The debate is therefore moving beyond how much superannuation Australians accumulate to whether the pension system itself provides enough support for people who reach retirement without substantial assets.
