Is a comfortable retirement slipping out of reach for everyday Australians, or are we simply redefining what retirement means?
The comfort gap
According to the Australian Retirement Trust, the average superannuation balance for Australians in their early 40s is around $107,000 for men and $76,000 for women.
Yet, to retire comfortably — as defined by ASFA’s Retirement Standard — 40-year-olds should already hold over $168,000 in super and 45-year-olds more than $226,000.
That’s not the end goal, but the benchmark to stay on track for a “comfortable” retirement by preservation age. In other words, those are the milestones we need to hit now if we’re hoping to maintain comfort later.
That gap looks daunting.
And it also reflects something deeper: the growing mismatch between expectations and reality.
Many Australians still aspire to a lifestyle that involves travel, dining out, and financial freedom well before pension age. The goal isn’t impossible. It belongs to those who think long term, make steady progress and believe financial freedom is still worth chasing.
Better than average
The truth is, few people want to be “average” when it comes to money. We all want the comfort of knowing we can choose how to spend our time.
But the averages are just that: averages.
They include years spent out of the workforce, lower-income periods, and inconsistent investing habits. Anyone who contributes steadily, manages fees, and invests for growth already has the potential to beat the mean.
For example, a 40-year-old with $150,000 in super who compounds at 8% annually and continues standard contributions could still surpass $1 million by 65. That’s not fantasy, it’s the quiet power of consistency and time.
Rethinking retirement
The bigger question may not be how much we need, but what are we working towards?
For some, retirement means never working again. For others, it’s the freedom to choose — to consult part-time, run a passion project, or travel between contracts. Many people are realising that full retirement isn’t the only path to independence.
Freedom might come from owning a small business, investing wisely, or simply having enough passive income to make work optional. The line between “working life” and “retired life” is blurring, and that’s okay.
It reflects a more flexible, purpose-driven idea of success.
Treat your finances like a business
If there’s one mindset that helps close the comfort gap, it’s this: treat your personal finances like a small business.
Businesses monitor cash flow, manage costs, reinvest profits, and track performance over time. Savvy individuals can do the same. That means:
- Earn more – invest in your career or side ventures to lift income capacity.
- Spend less – redirect surplus cash into assets, not lifestyle creep.
- Compound longer – the earlier and more consistently you invest, the less you rely on high returns.
You don’t need to a market beating guru to win. You just need to do the ordinary things (saving, contributing, investing consistently), extraordinarily well over long periods.
Perspective for Raskals
Retirement may look different for this generation, but the principles haven’t changed: live below your means, invest with patience, and give compounding the time it deserves.
The fantasy isn’t retiring early. It’s expecting freedom without discipline.
For Raskals, the better path is simple: focus on financial flexibility, not finality. A life where you can retire — but don’t have to — is the real definition of freedom.
