As the golden years approach, many Australians look forward to a well-deserved retirement, envisioning a time of relaxation and the freedom to enjoy life.

However, the reality for many is proving to be less idyllic, with the rising cost of living casting a shadow over retirement plans.

The Centrelink Age Pension, while a crucial safety net for many, is increasingly seen as insufficient for covering the basic needs of retirees, prompting experts to sound the alarm on the importance of seeking retirement advice.



The Age Pension, which recently increased to $1,144.40 for singles and $1,725.20 for couples per fortnight, is falling short of what many Australians over 60 believe is necessary to live comfortably.

According to a survey by National Seniors and Challenger, 90 per cent of Aussies over 50 stated that the pension alone wouldn't cover their basic needs, even if they owned their home outright.

Half of the homeowners surveyed echo this sentiment, estimating they require an additional $10,000 annually for singles and $15,000 for couples to meet their living expenses.


National Seniors Australia CEO Chris Grice has highlighted the gap between the pension and the actual cost of living, which includes expenses such as private health insurance, heating and cooling, and vehicle and home maintenance.

‘This research clearly shows that many older Australians are struggling to reconcile the cost of living with their retirement income,’ Grice said.

‘It’s not just about making ends meet; it’s about ensuring that retirees have the financial security to live with dignity and peace of mind.’

The Association of Superannuation Funds of Australia (ASFA) has estimated that singles need $33,134 per year for a modest retirement and $52,085 for a comfortable one, while couples need $47,731 and $73,337, respectively.

These figures assume the retiree owns their home outright and are significantly higher than the current Age Pension rates.



The story of Jenny Wynen, a former carer who retired three years ago, illustrated the concerns many Australians face as they approach retirement.

‘I was of the impression that you needed $1 million to retire. Being single, I thought I would be having to do this in my 70s, and it is a daunting thought,’ she said.

‘You don’t want to do that because most people want to retire when they are healthy and not wait until they have worn themselves out.’

It was only after receiving an inheritance and seeking financial advice that she discovered she could afford to retire earlier than anticipated.



This case underscores the importance of seeking retirement advice, a step that research from the Association of Superannuation Funds of Australia (ASFA) found nearly half of all adult Australians have not taken.

‘It means many Australians may end up worse off than they should be in their post-working lives, simply because they haven’t been empowered with the relevant guidance,’ ASFA CEO Mary Delahunty said.

Obtaining guidance is crucial for a secure retirement, whether through a financial adviser, friends and family, online resources, or super fund advisers.



However, the cost of financial advice, which can be upwards of $3,500, remains a barrier for many, according to Delahunty.

Despite the cost, Wynen's experience shows that investing in professional advice can be worthwhile, as it helped her establish a lifetime annuity with her superannuation and savings, providing a guaranteed income alongside her part-pension.

‘After speaking with [a financial adviser], we looked at all my finances and worked out what I could live on,’ she said.

‘It worked out that I could have a comfortable retirement.’
Have you found the Age Pension sufficient for your needs, or have you had to seek additional financial advice? Share your experiences and tips in the comments below.