How Much Do You Need?

The Association of Superannuation Funds of Australia, estimates that a comfortable retirement for a single person costs around $55,923 a year. A commonly quoted lump sum target for that lifestyle is $630,000. For comparison, the median Australian super balance across all ages is $60,037. These figures come from our retirement guide, which draws on ASFA, ATO, and CoreLogic data.

A few points matter when you read those numbers.

• The median across all ages includes people decades away from retirement, so it is not a fair measure of where someone aged 60 stands.
• Many retirees receive some Age Pension, which reduces how much they need to fund themselves.
• Your own number depends on whether you own your home, whether you are single or a couple, and what lifestyle you want.

The aim is not to hit a headline figure. It is to work out your number and see how far your current path gets you.

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How Super Works

Super is built to be hands-off. Your employer contributes, the money is invested for you, and you generally can access it from preservation age, which is 60 for most people, once you meet a condition of release.

What it offers

• Automatic contributions, with no tenants, repairs, or loan repayments
• Investment spread across shares, bonds, property, and other assets, depending on the option you choose
• Concessional tax treatment, which can be more favourable again once you start drawing an income stream
• Professional management, or full control if you run an SMSF

What to weigh

• You have limited control over how your money is invested
• You generally cannot touch it until you meet a condition of release
• Contribution limits and tax settings can change
• Fees and investment choice have a large effect over decades
• Returns are not guaranteed and can fall

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How Property Works

Property suits people who want more control and are comfortable using borrowing. You choose the asset, the location, and how long you hold it.

What it offers

• Rental income and capital growth from a tangible asset
• Leverage, which lets you control a large asset with a smaller deposit
• Control over when to buy, hold, renovate, or sell
• Equity in one property that can fund the next purchase

What to weigh

• Your money is concentrated in one asset and one location
• You carry holding costs, vacancy risk, and interest rate risk. The cash rate is now 4.6%, and lenders assess new borrowers at a rate 3 percentage points above their actual loan rate
• Property is not easy to sell in part, and selling has costs
• Tax rules for new purchases changed in 2026
• You need a deposit and borrowing capacity

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Property vs Super at a Glance

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What Changed in 2026

Three changes matter for anyone weighing property against super:

Negative gearing. For established residential properties bought after 12 May 2026, losses carry forward against future property income instead of offsetting your wages. Properties exchanged before that date are grandfathered, and new builds keep full negative gearing.

Capital gains tax. From 1 July 2027, the 50% CGT discount is replaced with indexation and a 30% minimum tax on real gains. A transitional rule splits the gain at that date, so growth before 1 July 2027 is still taxed under the existing discount.

SMSF borrowing. Borrowing to buy residential property through an SMSF has ended for new arrangements. Existing arrangements are grandfathered, and an SMSF can still buy property with cash. Super funds, including SMSFs, were excluded from the negative gearing and CGT changes above.

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Three Ways to Close the Gap

If your super is not on track to reach your number, these are the three levers our retirement guide covers.

1. Use equity you already have

If you own a home with equity, you may be able to use it as the deposit on an investment property without saving a new deposit. Usable equity is generally your property value multiplied by 80%, minus your mortgage. Our how to use equity to buy an investment property blog walks through the calculation.

The trade-off is more debt. You need enough income to service it, and a plan to bring it down before you stop working.

2. Build from cash flow

Over time, rents tend to rise while loan balances fall, so many properties improve their cash flow the longer you hold them. The idea is to hold assets that can support your income later, ideally with less debt by the time you retire. 

This takes years and is not guaranteed. It works best with a cash buffer of three to six months of repayments and a clear view of what the property needs to earn.

3. Add property through an SMSF

An SMSF lets you hold property inside super. With borrowing ended for new arrangements, a purchase generally needs enough cash already in the fund. Strict rules apply, including that the fund must be run to provide retirement benefits, and there are setup and ongoing compliance costs.

An SMSF is not suited to small balances, and it should only be considered with specialist advice.

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Can You Use Both?

Many people do. A common pattern is to let employer super run in the background while an investment property builds equity and income over the same years. The two serve different jobs, one steady and diversified, the other concentrated with more control.

Before deciding how to split your effort, ask yourself:

• How many years until I want to stop working?
• How much debt can I carry through a rate rise without losing sleep?
• What would the property need to earn for the plan to work?
• Who is on my team, including a broker, an accountant, and an adviser?

Review the plan regularly, because your income, rates, and the rules will all change.

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Ready to See Where You Stand?

At Search Property, we help Australians cut through the noise and build data-driven investment strategies aligned with long-term wealth goals. Our buyers agents have helped thousands of clients build wealth through property because we focus on fundamentals, not headlines.

Want the numbers behind this? Download The Retirement Guide for Australians to see the real cost of a comfortable retirement, where you stand, and three ways to close the gap.

Or book a FREE investment assessment call with Search Property.