Australia, the land of sun-kissed beaches, vibrant cities, and a laid-back lifestyle, is a dream retirement destination for many.

However, it's also one of the world's most expensive countries to retire in.

This might make you wonder: How much do you need in your superannuation to retire comfortably in Australia?

According to a study by Swedish loan broking group Sambla, Australians need a whopping $640,911 to retire comfortably.

This figure puts Australia in seventh place—behind only Switzerland, Monaco, Qatar, Singapore, Liechtenstein, and Canada in terms of retirement costs.

Australia ranks seventh in the world on the list of most expensive countries to retire in. Image source: gpointstudio on Freepik.

​

To put this into perspective, Switzerland, the most expensive place to retire, requires $927,034 in retirement savings, translating into annual costs of $46,632.

In contrast, a retiree in Australia would need $34,221 a year to survive, provided they aren't renting and have paid off their home.

Australia's high cost of retirement is further exacerbated by an inflation rate of 4.1 per cent, higher than most developed countries.

This means that the cost of living for retirees is continually rising, making it even more challenging to maintain a comfortable lifestyle.

But the financial challenges for Australian retirees don't stop there.

Australia is also a prime target for scammers, with the country boasting the fourth-highest pool of superannuation savings in the world, totalling $3.6 trillion.

A recent investigation by Super Consumers Australia revealed that since 2022, up to 178,000 superannuation members, with accounts in three super funds, have been placed at a heightened risk of phishing scams due to data breaches.

Rebekah Sarkoezy, Super Consumers Policy Manager, expressed concern over the lack of security measures implemented by super funds to prevent scams.

'There are some super funds who refuse to take up even the most basic account security controls like multi-factor authentication,' she said.

Phishing scams, where criminals send fraudulent emails or text messages designed to steal personal or financial information, can lead to significant losses for unsuspecting retirees.

Data breaches can also increase the risk of phishing, as scammers use stolen contact details and other information to target those who have had their personal information stolen.

In response to this growing threat, Super Consumers Australia has called for a mandatory industry scam code to prevent, detect, and disrupt scams.

They have made a submission to the Treasury's Scams – Mandatory Industry Codes consultation.

Below is the complete list of the most expensive places to retire comfortably:

1. Switzerland: $927,035 in retirement savings
2. Monaco: $795,431 in retirement savings
3. Qatar: $791,029 in retirement savings
4. Singapore: $773,456 in retirement savings
5. Liechtenstein: $772,984 in retirement savings
6. Canada: $665,752 in retirement savings
7. Australia: $640,911 in retirement savings
8. Iceland: $607,558 in retirement savings
9. Austria: $598,434 in retirement savings
10. France: $583,950 in retirement savings

Source: Sambla calculations based on cost of living, life expectancy

Key Takeaways

• Australia is ranked as the world's seventh most expensive country to retire, according to calculations by the Swedish loan broking group Sambla.
• Retirees in Australia need a minimum of $640,911 in retirement savings to retire comfortably, provided they own their home and are not renting.
• Super Consumers Australia has expressed concern over superannuation savings being at risk of phishing scams, particularly after data breaches affecting up to 178,000 superannuation members across three funds.
• Super Consumers Australia advocated for a mandatory industry scam code to better prevent, detect, and disrupt scams and has made a submission to the Treasury's Scams – Mandatory Industry Codes consultation.

Members, what are your thoughts on this news? What measures are you taking to secure your super? Share your thoughts and tips in the comments below.

 

[LeahI]

I can see why Switzerland is in first place. It is soooo expensive there. Friends just visited and they were paying around $150-$200 for a normal meal.
Back in Oz we need $34221py just to survive, not live comfortably! Do you get any pension to support that piddly amount? $641,000 sounds a lot, but it is not really enough.
Realistically you'd have to look at what your income is. Then work out what you are NOT going to do in retirement. Go on holidays, change your car regularly, dine out often, buy new clothes etc., and work up from that figure. Alas for most of us it's way too late.

 

[IAN3005]

$640,999..... are they joking.... more like $3-4 million..... It was $2 million more than 10 years ago...

 

[NotNats]

I live in my own home (at the moment) with no mortgage and my yearly budget with NO HOLIDAYS or other personal entertainment is just under $55,000. a year (at the moment). But remember this budget was created 5 years ago before all the massive increase that have happened in the last year. I'm in the process now of getting a new budget done and so far it's looking like I'm going to need close to $65,000. per year if I want to keep my home, that my hubby & me built together. Future not looking very bright and to make matters worse I'm turning 63 this year and can no longer work due to health problems.

 

[IAN3005]

I live in my own home (at the moment) with no mortgage and my yearly budget with NO HOLIDAYS or other personal entertainment is just under $55,000. a year (at the moment). But remember this budget was created 5 years ago before all the massive increase that have happened in the last year. I'm in the process now of getting a new budget done and so far it's looking like I'm going to need close to $65,000. per year if I want to keep my home, that my hubby & me built together. Future not looking very bright and to make matters worse I'm turning 63 this year and can no longer work due to health problems.

Crying shame..... and the government doesn't give it a thought....

 

[LeahI]

$640,999..... are they joking.... more like $3-4 million..... It was $2 million more than 10 years ago...

Also at that rate of expenditure you can only live for 18 years. Mind you, you probably wouldn't want to live that long because life would be so damn hard

 

[IAN3005]

Also at that rate of expenditure you can only live for 18 years. Mind you, you probably wouldn't want to live that long because life would be so damn hard

Oh I intend to live as long as possible.... I want to see the outcome of all this malarkey and sit back and say 'I told you so".

 

[Senor]

It is really simple. The amount you need in retirement depends entirely on the things you want to do. Nobody else can tell you what to do.

There are some basic day-to-day living costs that all of us have to contend with. That can be somewhat individual as well. Yes, you do have to cater for that.
Otherwise, there are discretionary expenses. If you are happy to stay at home most of your life after retirement, it will cost you less that if you want to travel twice a year. Holidays will cost you less if you want to stay in cheaper places rather than 4-star or 5-star places. If you go camping it costs less.

Only you can determine how much you need to live and enjoy life. Things you enjoy is your business.
There is an organisation Association of Superannuation Funds of Australia (ASFA). They provide some guidance on their website. But again, they do not know what I like or want to do in retirement. So there estimates are only a guide for those who have not worked out the cost of living in retirement.

I tell my adult kids that at this stage superannuation is a great income provider during retirement. After 60-years of age income is tax free for most people. So put money into superannuation. This is NOT advice to anybody on the forum.

I know that super wasn't available for some of us early in their career or due to some other circumstance. But we have to get over this "imaginary amount" others provide online. I have no idea what you want or need for retirement, so I would not tell you an amount. I only know what I want.

I could carry on but nobody will read a long post. So I will stop.

 

[LeahI]

It is really simple. The amount you need in retirement depends entirely on the things you want to do. Nobody else can tell you what to do.

There are some basic day-to-day living costs that all of us have to contend with. That can be somewhat individual as well. Yes, you do have to cater for that.
Otherwise, there are discretionary expenses. If you are happy to stay at home most of your life after retirement, it will cost you less that if you want to travel twice a year. Holidays will cost you less if you want to stay in cheaper places rather than 4-star or 5-star places. If you go camping it costs less.

Only you can determine how much you need to live and enjoy life. Things you enjoy is your business.
There is an organisation Association of Superannuation Funds of Australia (ASFA). They provide some guidance on their website. But again, they do not know what I like or want to do in retirement. So there estimates are only a guide for those who have not worked out the cost of living in retirement.

I tell my adult kids that at this stage superannuation is a great income provider during retirement. After 60-years of age income is tax free for most people. So put money into superannuation. This is NOT advice to anybody on the forum.

I know that super wasn't available for some of us early in their career or due to some other circumstance. But we have to get over this "imaginary amount" others provide online. I have no idea what you want or need for retirement, so I would not tell you an amount. I only know what I want.

I could carry on but nobody will read a long post. So I will stop.

Well I read it all. And agree as I said similar in my comments. Work out what you spend now and what you will not spend in retirement.

 

[IAN3005]

It is really simple. The amount you need in retirement depends entirely on the things you want to do. Nobody else can tell you what to do.

There are some basic day-to-day living costs that all of us have to contend with. That can be somewhat individual as well. Yes, you do have to cater for that.
Otherwise, there are discretionary expenses. If you are happy to stay at home most of your life after retirement, it will cost you less that if you want to travel twice a year. Holidays will cost you less if you want to stay in cheaper places rather than 4-star or 5-star places. If you go camping it costs less.

Only you can determine how much you need to live and enjoy life. Things you enjoy is your business.
There is an organisation Association of Superannuation Funds of Australia (ASFA). They provide some guidance on their website. But again, they do not know what I like or want to do in retirement. So there estimates are only a guide for those who have not worked out the cost of living in retirement.

I tell my adult kids that at this stage superannuation is a great income provider during retirement. After 60-years of age income is tax free for most people. So put money into superannuation. This is NOT advice to anybody on the forum.

I know that super wasn't available for some of us early in their career or due to some other circumstance. But we have to get over this "imaginary amount" others provide online. I have no idea what you want or need for retirement, so I would not tell you an amount. I only know what I want.

I could carry on but nobody will read a long post. So I will stop.

Superannuation is the biggest scam of all time, unless it's indexed

 

[Senor]

Superannuation is the biggest scam of all time, unless it's indexed

I have found super to be very useful for me as it provides tax free income. My super fund provides indexed super income. You can select if you want it indexed based on inflation or I think a certain percentage each year. I can't recall all the details and things change. I am NOT an expert in superannuation. I just know the basics.
From my perspective, if I had lets say $40,000 PA income from investments (outside of super and not in a tax advantaged structure i.e. Trust etc), I will have to pay tax on it. But income from super is tax free. That is a very simplistic way I looked at it.
Ian, I am not saying you are wrong. I am only presenting my understanding of the situation. I am sure a tax accountant will tell me that I am off my tree and I should be doing something else etc. But as a retired person I can't do too much else now.
Anyway, please continue to do what you are doing today. My ideas only apply to me based on the simplistic example I provided above.
Have a great day Ian.

 

[Catherines]

It is really simple. The amount you need in retirement depends entirely on the things you want to do. Nobody else can tell you what to do.

There are some basic day-to-day living costs that all of us have to contend with. That can be somewhat individual as well. Yes, you do have to cater for that.
Otherwise, there are discretionary expenses. If you are happy to stay at home most of your life after retirement, it will cost you less that if you want to travel twice a year. Holidays will cost you less if you want to stay in cheaper places rather than 4-star or 5-star places. If you go camping it costs less.

Only you can determine how much you need to live and enjoy life. Things you enjoy is your business.
There is an organisation Association of Superannuation Funds of Australia (ASFA). They provide some guidance on their website. But again, they do not know what I like or want to do in retirement. So there estimates are only a guide for those who have not worked out the cost of living in retirement.

I tell my adult kids that at this stage superannuation is a great income provider during retirement. After 60-years of age income is tax free for most people. So put money into superannuation. This is NOT advice to anybody on the forum.

I know that super wasn't available for some of us early in their career or due to some other circumstance. But we have to get over this "imaginary amount" others provide online. I have no idea what you want or need for retirement, so I would not tell you an amount. I only know what I want.

I could carry on but nobody will read a long post. So I will stop.

I agree with you wholeheartedly.

Only you know how you want to live, what you do with your money while working and where and how to spend what you have, how many fancy holidays you want a year and what elaborate (or otherwise) lifestyle you want to live in retirement. No one else can calculate that for you, not even a financial advisor although they can give you some tips, advice and pointers to help. Having paid off your home, where possible and no mortgage at the start of retirement, is a starting point, so try to get past that first step before retiring and, if and when you can during your working life, put as much as you can afford into your superannuation now, not later.

 

[Greg350]

$640,999..... are they joking.... more like $3-4 million..... It was $2 million more than 10 years ago...

What the hell do you spend on needing 3-4 million in assets? What absolute rubbish. Why can we live on 45k per year, comfortably. And super works extremely well for most. People will not take the initiative to save money when young for their retirement. It's forced savings and has worked well for me.

 

[MaccaMan]

Do you REALLY think there will be any super around in the next 5-10 years with the country/world being in unprecedented debt? Once the government has exhausted all our savings on just trying to live, where do you think they'll go next? Yep, your super! It has already begun - it is proposed to take a percentage from your super to cover your 'supposed' aged care costs into the future!

Have a gander at the transition from democracy to communism noting that the process can vary significantly depending on historical, political, and social contexts. This is a generalised outline of steps that have often been observed in historical attempts to transition to communism from a democratic system:

1. Social and Economic Discontent: Typically, a period of social and economic unrest precedes any major political transition. This discontent may arise from factors such as inequality, poverty, exploitation, or perceived injustice within the democratic system. WE ARE ALREADY IN THIS PHASE

2. Rise of Revolutionary Movements: In response to the discontent, revolutionary movements advocating for communist ideology may gain momentum. These movements often represent marginalized or oppressed groups and seek to overthrow the existing democratic regime. WE ARE ALSO IN THIS PHASE

3. Revolutionary Struggle: A period of intense political struggle, protests, and possibly armed conflict may occur as revolutionary forces challenge the authority of the democratic government and its supporters. WE ARE SEEING THIS OVERSEAS, WHICH WE WILL THEN FOLLOW...

4. Collapse of Democratic Institutions: As the revolutionary movement gains strength, democratic institutions may weaken or collapse, unable to effectively maintain order or legitimacy in the face of widespread dissent.

5. Establishment of a Revolutionary Government: The revolutionary movement may establish a new government based on communist principles. This government often claims to represent the interests of the working class or the proletariat and seeks to implement socialist policies. WE ARE IN THIS PHASE - THINK BACK TO THE 'EMERGENCY POWERS DURING COVID'...

6. Nationalisation of Key Industries: One of the early steps taken by the new communist government may be the nationalisation of key industries and resources. This is aimed at centralising control over the means of production and redistributing wealth and resources. WE ARE IN THIS PHASE. HUNDREDS OF BANK BRANCHES CLOSING DOWN AND MOVING TO CENTRAL BANKING DIGITAL CURRENCY (CBDC). OVERSEAS WE ARE SEEING FARMERS SHUT DOWN (Google it) IN ORDER TO CONTROL THE FOOD RESOURCES

7. Land Reforms: Land reforms may be implemented to redistribute land from large landowners to peasants or collective farms, with the goal of achieving greater equality in land ownership and agricultural production. WE ARE IN THIS PHASE

8. Transition to a Planned Economy: The communist government may transition from a market-based economy to a centrally planned economy, where production and distribution are controlled by the state rather than by market forces. HAPPENING OVERSEAS

9. Suppression of Opposition: Opposition to the new regime, whether from political rivals, dissidents, or counter-revolutionary elements, may be suppressed through censorship, imprisonment, or other means to consolidate the communist government's power. WE ARE IN THIS PHASE. OPPONENTS (POLITICAL, MEDIA AND/OR MEDICAL (VACCINATION) ARE CENSORED ON YOUTUBE AND HAVING TO MOVE TO PLATFORMS SUCH AS 'X' AND RUMBLE WHERE FREEDOM OF SPEECH IS SUPPORTED. POLITICAL RIVALS ARE BEING CHARGED AND JAILED IN AMERICA. DONALD TRUMP FACING DOZENS OF CHARGES, TUCKER CARLSON FIRED FROM FOX. PETER NAVARRO CHARGED AND JAILED (Google it) I COULD GO ON...

10. Ideological Indoctrination: To maintain control and legitimacy, the communist government often engages in ideological indoctrination through education, media, and propaganda, promoting the principles of communism and suppressing alternative ideologies. WE HAVE BEEN IN THIS PHASE FOR YEARS - UNIVERSITIES WORLDWIDE HAVE BEEN INDOCTRINATED BY THE CHINESE FOR YEARS...

 

[IAN3005]

What the hell do you spend on needing 3-4 million in assets? What absolute rubbish. Why can we live on 45k per year, comfortably. And super works extremely well for most. People will not take the initiative to save money when young for their retirement. It's forced savings and has worked well for me.

To each his own..... still a scam unless indexed.... although the has been phased out...if you are prepared to accept a measly 3% return..... when my return dropped from 16% I bailed out.

 

[SGH]

Our budget for all our bills is $20,000 per annum, that was last year. Already the council and water rates have come in higher than what they were last year. At the moment we have two vehicles and I am seriously not considering replacing one when we give it to our grandson, that alone will save several thousand on insurance, rego, petrol, etc.
We are going away this year, however, most of the trip was booked and paid for in 2020 in the no fly time of COVID. We don't skimp on food and buy fresh vegies, fruit and bulk meat so we freeze meals to have for later. We also have high expenses at the chemist, and even with the generic brands we aren't seeing much of a discount there.
We roughly receive $1000 per week for the two of us from my husbands super and he has just got a $1200 tax bill, so I do not believe the free tax over 60 years of age. He has gotten a bill every year from the ATO who even at one time asked that he pay $6000 provisional tax because it would mean that based on his super that would be the amount always owed and they would prefer not to be out of pocket. When you advise the super scheme to take more money out for tax, you have to make sure they do it and supply a valid group certificate.

 

[Greg350]

To each his own..... still a scam unless indexed.... although the has been phased out...if you are prepared to accept a measly 3% return..... when my return dropped from 16% I bailed out.

Who's getting 3%? I think you need to have another look at that. As I said when you're 20 retirement income is not in your mind at all. Without super very few people would be providing for themselves in the future.

 

[Greg350]

Our budget for all our bills is $20,000 per annum, that was last year. Already the council and water rates have come in higher than what they were last year. At the moment we have two vehicles and I am seriously not considering replacing one when we give it to our grandson, that alone will save several thousand on insurance, rego, petrol, etc.
We are going away this year, however, most of the trip was booked and paid for in 2020 in the no fly time of COVID. We don't skimp on food and buy fresh vegies, fruit and bulk meat so we freeze meals to have for later. We also have high expenses at the chemist, and even with the generic brands we aren't seeing much of a discount there.
We roughly receive $1000 per week for the two of us from my husbands super and he has just got a $1200 tax bill, so I do not believe the free tax over 60 years of age. He has gotten a bill every year from the ATO who even at one time asked that he pay $6000 provisional tax because it would mean that based on his super that would be the amount always owed and they would prefer not to be out of pocket. When you advise the super scheme to take more money out for tax, you have to make sure they do it and supply a valid group certificate.

Super withdrawals, when over 60, is generally tax free. Now what type of super is it? It's not some kind of trick, if you have the correct super fund, correct age, withdrawal are free of tax. Is it a Defined Benefits Scheme? Is it a SMSF? "Getting a bill" for tax does not mean the super was the cause. I believe that when they do withdrawals and tax is liable the super fund take out the tax first and give you the remainder, hence you do not get a tax bill. Sounds like the tax is for something else. maybe you should have spoken to an expert earlier.

Do you REALLY think there will be any super around in the next 5-10 years with the country/world being in unprecedented debt? Once the government has exhausted all our savings on just trying to live, where do you think they'll go next? Yep, your super! It has already begun - it is proposed to take a percentage from your super to cover your 'supposed' aged care costs into the future!

Have a gander at the transition from democracy to communism noting that the process can vary significantly depending on historical, political, and social contexts. This is a generalised outline of steps that have often been observed in historical attempts to transition to communism from a democratic system:

1. Social and Economic Discontent: Typically, a period of social and economic unrest precedes any major political transition. This discontent may arise from factors such as inequality, poverty, exploitation, or perceived injustice within the democratic system. WE ARE ALREADY IN THIS PHASE

2. Rise of Revolutionary Movements: In response to the discontent, revolutionary movements advocating for communist ideology may gain momentum. These movements often represent marginalized or oppressed groups and seek to overthrow the existing democratic regime. WE ARE ALSO IN THIS PHASE

3. Revolutionary Struggle: A period of intense political struggle, protests, and possibly armed conflict may occur as revolutionary forces challenge the authority of the democratic government and its supporters. WE ARE SEEING THIS OVERSEAS, WHICH WE WILL THEN FOLLOW...

4. Collapse of Democratic Institutions: As the revolutionary movement gains strength, democratic institutions may weaken or collapse, unable to effectively maintain order or legitimacy in the face of widespread dissent.

5. Establishment of a Revolutionary Government: The revolutionary movement may establish a new government based on communist principles. This government often claims to represent the interests of the working class or the proletariat and seeks to implement socialist policies. WE ARE IN THIS PHASE - THINK BACK TO THE 'EMERGENCY POWERS DURING COVID'...

6. Nationalisation of Key Industries: One of the early steps taken by the new communist government may be the nationalisation of key industries and resources. This is aimed at centralising control over the means of production and redistributing wealth and resources. WE ARE IN THIS PHASE. HUNDREDS OF BANK BRANCHES CLOSING DOWN AND MOVING TO CENTRAL BANKING DIGITAL CURRENCY (CBDC). OVERSEAS WE ARE SEEING FARMERS SHUT DOWN (Google it) IN ORDER TO CONTROL THE FOOD RESOURCES

7. Land Reforms: Land reforms may be implemented to redistribute land from large landowners to peasants or collective farms, with the goal of achieving greater equality in land ownership and agricultural production. WE ARE IN THIS PHASE

8. Transition to a Planned Economy: The communist government may transition from a market-based economy to a centrally planned economy, where production and distribution are controlled by the state rather than by market forces. HAPPENING OVERSEAS

9. Suppression of Opposition: Opposition to the new regime, whether from political rivals, dissidents, or counter-revolutionary elements, may be suppressed through censorship, imprisonment, or other means to consolidate the communist government's power. WE ARE IN THIS PHASE. OPPONENTS (POLITICAL, MEDIA AND/OR MEDICAL (VACCINATION) ARE CENSORED ON YOUTUBE AND HAVING TO MOVE TO PLATFORMS SUCH AS 'X' AND RUMBLE WHERE FREEDOM OF SPEECH IS SUPPORTED. POLITICAL RIVALS ARE BEING CHARGED AND JAILED IN AMERICA. DONALD TRUMP FACING DOZENS OF CHARGES, TUCKER CARLSON FIRED FROM FOX. PETER NAVARRO CHARGED AND JAILED (Google it) I COULD GO ON...

10. Ideological Indoctrination: To maintain control and legitimacy, the communist government often engages in ideological indoctrination through education, media, and propaganda, promoting the principles of communism and suppressing alternative ideologies. WE HAVE BEEN IN THIS PHASE FOR YEARS - UNIVERSITIES WORLDWIDE HAVE BEEN INDOCTRINATED BY THE CHINESE FOR YEARS...

Sure mate, whatever you say. Haha.

 

[Catherines]

Tax on super, as I believe it to be, is tax on the interest your super fund makes each year on what you have with them. It is tax on what your money MAKES. You original super amount was taxed when you earned wages during your working life & before you & your employer put it into the fund. While it is in your fund, they invest (on your behalf) with companies & that interest is taxed, not your original super contributions. It cannot be taxed again, only interest earned is taxed. If I am not mistaken (I could be though) the super fund pays the tax before the money goes into your account,

 

[IAN3005]

It is really simple. The amount you need in retirement depends entirely on the things you want to do. Nobody else can tell you what to do.

There are some basic day-to-day living costs that all of us have to contend with. That can be somewhat individual as well. Yes, you do have to cater for that.
Otherwise, there are discretionary expenses. If you are happy to stay at home most of your life after retirement, it will cost you less that if you want to travel twice a year. Holidays will cost you less if you want to stay in cheaper places rather than 4-star or 5-star places. If you go camping it costs less.

Only you can determine how much you need to live and enjoy life. Things you enjoy is your business.
There is an organisation Association of Superannuation Funds of Australia (ASFA). They provide some guidance on their website. But again, they do not know what I like or want to do in retirement. So there estimates are only a guide for those who have not worked out the cost of living in retirement.

I tell my adult kids that at this stage superannuation is a great income provider during retirement. After 60-years of age income is tax free for most people. So put money into superannuation. This is NOT advice to anybody on the forum.

I know that super wasn't available for some of us early in their career or due to some other circumstance. But we have to get over this "imaginary amount" others provide online. I have no idea what you want or need for retirement, so I would not tell you an amount. I only know what I want.

I could carry on but nobody will read a long post. So I will stop.

Can't afford anything. I fact going backwards.... My total expenses come to =/-$60,000.. that's with me doing diddly squat.....