New research busts the million-dollar retirement myth

• New research debunks the widely held belief that Australians need $1 million in superannuation to retire comfortably.
• 94 per cent of recent retirees leave the workforce without hitting the $1 million mark.
• Warren Morrison retired comfortably with $350,000 in superannuation and doesn’t feel as though he is missing out.

11 June 2025 – Australians don’t need a $1 million superannuation balance to live well in retirement, with new research busting the old myth that a seven-figure sum is necessary for retirees’ golden years. 

AustralianSuper commissioned YouGov to ask more than 1000 Australians who have retired in the past five years how much money they retired with and how confident they felt about retiring. The data reveals more than half (54 per cent) of recent retirees agree you don’t need $1 million in superannuation to live well in retirement. 

The same research found most retirees (94 per cent) left the workforce in the last five years with less than $1 million in superannuation.

In fact, nine in ten (89 per cent) retirees agree superannuation alone isn’t the only factor contributing to financial security and 95 per cent say it’s important to consider the full picture including the Age Pension, lifestyle expectations and other savings or assets.

While having more superannuation can improve retirees’ sense of financial security, there are other factors that contribute significantly to retirement confidence.

It’s something that Warren Morrison knows firsthand. Warren enjoyed a colourful career spanning local government, banking and media, before retiring in 2022 at the age of 64.

“I didn’t have a million bucks, but I had a plan,” he says. “I worked out what I’d need day to day, figured out what brought me joy and built my retirement around that, eventually leaving the workforce with around $350,000 in superannuation.

“I’m not sitting still – I’m officiating weddings, hosting trivia nights, doing a bit of acting and even judging roller skating competitions. It’s not about being rich; it’s about being purposeful. I still have my coffee and cake with mates. I’m careful, but I’m not missing out.

“The key isn’t a magic number. It’s knowing what kind of life you want and putting the pieces in place to live it.”

AustralianSuper Head of Advice and Guidance, Ross Ackland, says the research offers a more realistic view of what Australians may actually need to retire comfortably

“We know superannuation is incredibly important and encourage members to make extra contributions where appropriate, but super is only one piece of the retirement puzzle,” he said.

“Some people think they need to be chasing a seven-figure balance to live well in retirement, but many Australians are thriving with less because they’ve planned around their lifestyle, not just a number.

“It’s also important to remember that our superannuation system is still maturing and will continue to deliver stronger outcomes for more Australians. Compulsory super was only introduced in 1992 and at much lower contribution rates than we have today. That means many of today’s retirees didn’t have the benefit of contributing over their full working lives – but future generations likely will.

“The key to retirement confidence is to be realistic, understand your needs and make the most of all the tools available to you – whether that’s superannuation, the Age Pension, good spending habits or even simple planning tools that help you get a clearer picture of what you might need.”

For more information visit australiansuper.com/retirement/retirement-articles/2018/02/do-i-really-need-1-million-to-retire.