Australians are setting their sights on retirement savings of more than A$1.25 million, with about one in three hoping to fund a lifestyle of extensive travel and financial freedom in later life.
The findings come from the 2026 Real Retirement Report, commissioned by superannuation provider MLC and based on a nationally representative survey of 2,500 Australians aged 18 and over. A similar proportion said they were aiming for between A$750,000 and A$1.25 million, while the remainder expected to retire with up to A$750,000.
Renee Howie, MLC’s chief customer officer, said the research showed Australians had ambitious expectations for their retirement years.
“Australians have high expectations for a glorious retirement,” she said. “What surprised us was how many people are aiming well beyond traditional retirement benchmarks.”
How much superannuation is needed for retirement?
New MLC modelling suggests a 40-year-old planning to retire at 67 with A$750,000 would need to have about A$174,400 in superannuation today. The figure rises to A$288,800 for someone targeting A$1.25 million by retirement.
MLC stressed that the figures were intended to provide context rather than prescribe a universal savings target. Its report highlights a gap between the lifestyle many Australians envisage and the steps they are taking to prepare for it.
A retirement balance of A$750,000 would typically support a more modest lifestyle, including regular local meals, activities such as golf, lawn bowls or bridge, an annual domestic holiday and occasional overseas travel.
Those with between A$750,001 and A$1.25 million could expect greater flexibility, including weekly meals out and more international travel. A balance above A$1.25 million was associated with what MLC described as a “champagne retirement”.
“Think champagne, clinking glasses, plenty of time overseas or travelling across Australia, the ultimate financial freedom,” Ms Howie said.
Jenneke Mills, MLC’s head of technical services, said savers who were behind their desired retirement path should start by checking their balance and reviewing whether their investment choice remained suitable for their age and circumstances.
MLC also pointed to additional contributions, including salary sacrifice, as one way eligible workers could increase their eventual retirement income. Its guidance says people should also consider their planned retirement age, contribution strategy, investment risk and possible eligibility for the Australian age pension.
Ms Mills said the figures were not designed to dictate how much every Australian should save.
“The intention of this isn’t to set a target; it’s giving context to an abstract concept,” she said.
