4.3 million Aussies think they can’t afford to retire

House prices are eating up more than half people’s income in some areas, putting their retirement plans under threat.

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An alarming number of Austalians fear they won’t have enough money in super or other investments to live off once they hit retirement as housing costs chew up a growing share of their income.

Polling by comparison group Finder.com.au revealed about a fifth of Aussies said they didn’t have enough money in their combined assets to fund a retirement.

The Association of Superannuation Funds of Australia (ASFA) recommends $595,000 for singles and $690,000 for couples for a comfortable retirement.

In contrast to these figures, Finder states the average Australian has $172,835 in super, with a median much lower at $60,037.

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This comes as much of the population continues to spend a disproportionate amount of their earnings on housing, with about one in five Aussie homeowners directing more than half of their income into mortgage repayments each month.

The proportion of homeowners spending more than a third of their income on repayments was even higher, accounting for three quarters of those with a mortgage.

The high mortgage expenditure means these homeowners have scant income leftover to store away for retirement.

Finder revealed one in five, or 20 per cent of Aussies, believe they will have enough money to get by in retirement but will probably have to cut back on their spending. One in 10 said their super balance was too low but they will have enough in other investments.

About one in four, or 27 per cent, said they were not sure if they would have enough money to survive once they they hit retirement.

Pascale Helyar-Moray said Aussies should consider salary sacrifice. Picture: Gaye Gerard / NCA Newswire

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Finder superannuation expert Pascale Helyar-Moray said retirement may be financially out of reach for a large share of Australians.

Insufficient super or savings could see millions of Aussies facing financial strain in the later years, she said.

“More and more people are worried that retirement will arrive before the money does, leaving them underprepared,” she said.

Ms Helyar-Moray said some Australians assumed they will fall back on the Age Pension, but this wasn’t guaranteed.

Ms Helyar-Moray urged Aussies to consider playing catch-up by contributing to their super through salary sacrifice to build a bigger safety net.

Source: Finder June 2025 survey

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“Super earnings below $30k are taxed at a maximum of just 15 per cent, which means salary sacrificing into super could help grow your wealth while also lowering your tax,” she said.

“You won’t be able to access your super until retirement, so it’s wise to ease into it – $100 a month may not sound like much, but it can make a real impact over time.”

Ms Helyar-Moray added Aussies need to make sure their super fund is not charging them excessive fees and providing good returns.

“Make sure that you aren’t stuck in a poorly performing fund and check regularly that your employer is paying your 12 per cent Superannuation Guarantee contributions on time.”