For many Australians, retirement planning has historically been about accumulating a superannuation balance and hoping it will be enough when the time comes. But “enough” depends on what you want your retirement to look like. Do you want to travel? Maintain your home? Help children or grandchildren? Replace your car? Pay for private health insurance? Deal with unexpected medical expenses? Or simply have enough income that you don’t have to worry about every dollar?

The answer is different for everyone. And in 2026, the cost of retirement is something worth looking at carefully.

The Retirement Question Has Changed

Australia’s superannuation system has matured considerably since compulsory superannuation began. The Super Guarantee is now 12% of eligible earnings, following the final increase on 1 July 2025. From 1 July 2026, employers are also required to pay super on payday rather than relying on the previous quarterly payment cycle.

That’s positive for the accumulation of retirement savings. But there’s another side to the equation — the amount you need in retirement has also increased.

According to the June 2026 ASFA Retirement Standard, a homeowner aged 65–84 requires approximately:

These are benchmarks rather than personal targets, but they demonstrate an important point: the retirement lifestyle you want has a direct relationship with the amount of capital and income you need.

And retirement costs aren’t standing still. ASFA’s September 2026 analysis found that, over the year to June 2026, the following costs rose well ahead of general inflation:

So simply asking “How much super do I have?” isn’t enough. The better question is:

“Will my retirement assets produce the income I want, for as long as I need it?”

How Much Super Do You Need to Retire?

There is no single number that applies to everyone. Your required retirement capital depends on:

• your age and when you intend to retire
• your desired lifestyle
• whether you own your home, and whether you have debt
• your expected retirement income and investment strategy
• your other assets and Age Pension eligibility
• healthcare and insurance costs
• how much you intend to travel, and how much you want to leave to your family
• and how long your retirement may last

ASFA currently estimates that, for someone retiring at age 67, a homeowner would need approximately:

But these aren’t magic numbers. The Australian Government’s Moneysmart makes the same point: there’s no single right amount of super, because retirement spending varies significantly between households. Someone with a fully paid-off home and modest spending requirements may need substantially less than someone who wants to travel extensively while maintaining a higher level of discretionary spending.

For a deeper look at working out your own capital target, see our How Much Do I Need at Retirement? page.

How Does Your Super Compare?

One useful starting point is to compare your current balance with broader Australian superannuation balances. The latest APRA figures reported by Moneysmart show average superannuation balances of approximately:

These are averages, not targets. Your circumstances may be completely different.

The important thing is not whether you are above or below the average. The important question is:

Are your current assets and contributions sufficient to fund the retirement you actually want?

Your Super Fund May Already Be Doing Many Things Right

It’s important not to assume that having an industry or retail super fund means your retirement strategy is inadequate. Modern super funds provide access to diversified portfolios containing investments such as Australian shares, international shares, property, infrastructure, private markets, fixed interest and cash — and long-term returns can be substantial.

Those figures demonstrate why superannuation shouldn’t simply be dismissed because it isn’t directly invested in property. The real question is whether your particular investment option, contribution rate, fees, risk level and retirement timeframe are appropriate for you. We’ve put the two side by side — including where each one tends to outperform, and why — in SMSF Property Investment vs Industry Super Fund.

But Your Super Balance Is Only One Part of the Equation

A retirement strategy shouldn’t necessarily stop with your super statement. You may also have your family home, investment property, shares, managed investments, cash, business interests, other investments, future inheritances, or other sources of retirement income. This is where retirement planning becomes more interesting.

Instead of asking “Which investment should I buy?” the better question is:

What combination of assets and income streams could best support my retirement objectives?

That distinction is particularly important when considering an SMSF.

Could an SMSF Form Part of Your Retirement Strategy?

An SMSF isn’t automatically better than an industry super fund. It’s simply a different way of managing superannuation. An SMSF can provide greater control over the fund’s investment strategy and, where the legislation permits it, direct exposure to assets such as property — but that additional control also comes with responsibility. SMSF trustees remain responsible for complying with superannuation legislation, maintaining an appropriate investment strategy, managing the fund’s investments, and meeting reporting and administrative obligations. See our Self-Managed Super Fund page for the fuller picture.

ASIC’s Moneysmart notes that SMSFs can invest in property, but strict rules apply. For example, residential property generally cannot be lived in or rented by a fund member or their related parties, and the investment must satisfy the superannuation rules including the sole purpose test.

So the question isn’t “Can I buy property through my SMSF?” It’s:

Does direct property ownership make sense within my overall retirement strategy?

SMSF Property Strategies Have Changed in 2026

This is particularly important today — the rules around SMSF residential property borrowing changed in 2026.

That doesn’t mean residential property has disappeared from SMSFs. An SMSF can potentially still acquire residential property without borrowing, provided the acquisition complies with the superannuation rules and the fund’s investment strategy. There are also more sophisticated structures — including 13.22C unit trusts and fractional investment — that may be relevant in appropriate circumstances.

The 13.22C Unit Trust Strategy

One example is a properly structured 13.22C unit trust. Under the relevant superannuation regulations, an SMSF’s investment in a related company or unit trust can, if strict conditions are continuously satisfied, qualify for an exclusion from the in-house asset rules — sometimes referred to as an ungeared related unit trust or a 13.22C structure.

This is an area where precision is extremely important. A 13.22C unit trust cannot simply borrow money to buy property. The trust must comply with strict conditions, including restrictions around borrowing, related-party transactions and the assets it can hold. If the conditions cease to be satisfied, the investment can potentially become an in-house asset.

In the right circumstances, structures involving capital inside and outside super can create opportunities that are very different from simply transferring your super into an industry fund investment option. This is not a strategy to implement from an internet article — it requires appropriate legal, accounting, tax and SMSF advice before anything is established. We’ve set out the fuller mechanics on our guide to residential SMSF property after the 2026 LRBA changes.

Commercial Property Is a Different Proposition

The 2026 residential LRBA changes shouldn’t be confused with the rules applying to eligible business real property. Where the relevant requirements are satisfied, an SMSF can potentially use an LRBA to acquire eligible commercial / business real property — particularly relevant to business owners who want their SMSF to own premises leased to their business at market terms. Again, the strategy needs to be assessed on its merits: the fact that an SMSF can borrow to acquire an asset doesn’t mean that borrowing automatically makes the investment appropriate.

Don’t Judge Your Retirement by Your Super Balance Alone

Imagine two Australians approaching retirement.

Who has the stronger retirement position? You can’t answer that simply by comparing their super balances.

Retirement planning is about income, assets, liabilities, spending and time — not just a number on a super statement.

What Should You Be Reviewing Now?

If you’re within 10–15 years of retirement, it may be worth reviewing five things.

1. Your current super balance — understand exactly what you have and where it’s invested.
2. Your contribution strategy — check whether compulsory and voluntary contributions are working effectively within the applicable contribution rules.
3. Your investment strategy — understand what your super is actually invested in and whether that matches your timeframe and risk tolerance.
4. Your other assets — your retirement strategy may include property, shares, cash, business assets and your family home. An SMSF Portfolio Review can help build this picture.
5. Your expected retirement income — don’t focus exclusively on the capital figure. Ask: how much income could my assets reasonably provide throughout retirement? That’s ultimately what you’ll live on.

What If There’s a Gap?

If your projected retirement position isn’t where you want it to be, discovering that today gives you options, including:

• increasing contributions, or reviewing fees
• changing your investment strategy, or restructuring existing investments
• reducing debt
• acquiring investment assets outside super, or reviewing existing property holdings
• considering whether an SMSF is appropriate
• investigating direct property ownership through an SMSF
• considering a 13.22C structure where appropriate
• considering eligible commercial property strategies
• or simply changing your expected retirement date or spending requirements

There isn’t one solution. And importantly, you don’t need to buy an investment property simply because you have a retirement shortfall. The strategy should come first.

Strategy Before Property

At properT network, we believe the question shouldn’t start with “What property can I buy?” It should start with “What are you trying to achieve?”

Only after understanding your existing super, assets, income, liabilities, investment timeframe and retirement objectives should you consider whether property has a legitimate role in the strategy. For some investors, the answer may be an industry or retail super fund with an appropriate investment option. For others, an SMSF may provide the additional control and investment flexibility they’re looking for. For some SMSF investors, property may form part of that strategy. And for others, it may not.

The property itself is not the strategy. The strategy determines whether the property makes sense.

See our Strategy Before Property page for how we work through this with clients.

So, How Are You Tracking?

You don’t need to know whether you have the “right” amount of super. You need to know whether you’re on track for the retirement you want. Start with three questions:

1. Where am I now? What do I have in super, property, shares, cash and other assets?
2. Where do I want to be? What lifestyle do I actually want in retirement, and what will it cost?
3. What is the gap? If there’s a gap between those two positions, what realistic strategies could potentially close it?

That’s a much more useful conversation than simply asking whether your super balance is above or below an Australian average.

Could an SMSF Property Strategy Be Part of Your Solution?

The 2026 SMSF environment looks very different from just a couple of years ago. Residential property can still potentially form part of an SMSF strategy, but new residential LRBAs are no longer available. Alternative structures, including properly established 13.22C unit trusts, may be relevant in some circumstances, while eligible commercial property can potentially still be acquired through an LRBA.

The important thing is to understand the strategy before committing your retirement savings to an investment. If you’d like to understand whether an SMSF property strategy could have a role in your broader retirement plan, start with your objectives, your existing position and the numbers — not the property.

Strategy before property.

Explore the properT network Family of Sites

SMSF property is one part of a much bigger picture. Our other sites cover investment property more broadly, by location and by strategy:

• properT network — our main site, covering property investment strategy across personal name, trust and SMSF ownership structures.
• Investment Property Queensland — investment property opportunities across Brisbane, South East Queensland and regional QLD.
• Investment Property Melbourne — investment property opportunities across Melbourne and Victoria.
• Downsizing for Retirement — downsizing and super contribution strategies for retirees.

This article is general information only and does not take into account your personal circumstances, financial objectives or needs. SMSF, taxation, investment, property and superannuation strategies can involve significant legal, financial and compliance considerations. You should obtain appropriate professional advice before establishing an SMSF, acquiring property through superannuation, or implementing any investment strategy.