When it comes to planning for retirement, most Australians have been told one thing: “Just let your super do the work.” But here’s the uncomfortable truth: if you’re relying solely on superannuation to fund your retirement, you could be setting yourself up for disappointment.
We’ve spent decades helping thousands of Australians build wealth through property — both as Qualified Property Investment Advisers and as investors ourselves — and time and time again, we’ve seen where super alone falls short. It’s simply not enough to fund the kind of retirement most people dream about.
Sure, super can be a helpful part of your financial strategy — but it’s not designed to deliver financial peace. It’s built to provide adequacy, not abundance. And when you zoom out and look at how super actually performs for most Australians, the picture isn’t pretty.
According to the Australian Institute of Health and Welfare, 63% of Aussies over 65 are still receiving income support payments — and of those, 92% are relying on the Age Pension. That’s not a lifestyle by design. That’s survival.
The illusion of safety
Superannuation is often viewed as a “set and forget” safety net — something you quietly contribute to and tap into at retirement. But this passive approach carries hidden risks.
For one, you’re handing over your retirement to a mix of fund managers, market forces, and changing legislation — none of which you can control. Your fund might be conservative or aggressive, your fees might be high or low, and your return might be strong or sluggish. But you won’t really know until it’s too late to do much about it.
Contrast that with property. Done well, property allows you to take an active role in your wealth creation journey — building equity, leveraging growth, managing debt, and most importantly, creating passive income on your terms. It’s not just about what you have in retirement. It’s about how much control you have on the way there.
Where are you on the path?
We often refer to the 7 Grades of Financial Well-being — a framework that shows the journey from financial turmoil to financial contribution. Most Aussies relying solely on super may make it to Grade 4 (stability) or maybe Grade 5 (control), but never quite reach Grade 6 — financial peace — where your wealth supports your lifestyle without stress or compromise.
And almost none reach Grade 7 — where you have enough to meaningfully give back or create a legacy. To move beyond just surviving and actually thrive in retirement, you need more than super — you need a strategic, scalable wealth plan that puts you in the driver’s seat.
Let’s talk about lifestyle
The Association of Superannuation Funds of Australia (ASFA) offers a helpful comparison:
- On the Age Pension, your lifestyle includes basic clothing, home-brew beer, and haircuts from your mate.
- A “modest” retirement gives you cheap takeaway, older cars, and the occasional local getaway.
- Only a “comfortable” retirement — think new kitchen every 20 years, private health, and the annual interstate holiday (plus the occasional international holiday) — requires serious income.
So here’s the question: if you’re not investing beyond super, how will you fund anything more than “modest”?
How much do you really need?
Let’s run the numbers using a simple formula — the Rule of 25. If you want $3,000 a week in passive income ($156,000 a year), you’d need an income-producing asset base of around $3.9 million. That excludes your family home and assumes a 4% annual return.
Most super balances aren’t coming anywhere close to that — not without significant time, consistent high contributions, and strong long-term performance. And even then, that money is locked away until preservation age, with rules that can shift with political tides. Meanwhile, a well-structured property portfolio can be planned, managed, and accessed on your terms, without waiting for Canberra’s permission.
Super is passive. Property is proactive.
We’re not here to bash super — it serves a purpose. But relying on it alone is like expecting a side hustle to fund your entire lifestyle. It’s not built for that.
Property, on the other hand, is an active wealth-building tool. You can:
- Leverage debt to accelerate growth.
- Select high-performing assets that match your goals.
- Manage cashflow and reduce holding costs over time.
- Unlock equity or transition to passive income when you choose.
It’s not about speculation or chasing shiny objects — it’s about building a small but mighty portfolio that quietly works in the background, generating the kind of income super can’t.
You can’t outsource your financial peace
The biggest risk in relying solely on super? You’ve outsourced your entire retirement strategy to someone else. We often talk a lot about personal sovereignty — the ability to live life on your terms, with time, flexibility and freedom. That doesn’t come from handing the reins to a faceless fund. It comes from taking control, building a plan, and executing it with confidence.
So if you’re feeling unsure about whether your super is enough, you’re not alone. But more importantly, you’re not stuck. Speak to a qualified Financial Planners to find out your options. And remember, you can create a retirement that’s not just “adequate”, but extraordinary. One with choices, freedom, and lifestyle by design.
It just starts by looking beyond super, and taking action today.
Bryce Holdaway and Ben Kingsley are two of Australia’s leading voices in property, finance, and money management. Together, they co-host the chart-topping podcast The Property Couch, where they’ve helped millions of Australians cut through the noise and build wealth the right way – without the hype, stress or spruiker traps. Their latest book is How to Retire on $3,000 a Week ($32.95). Visit thepropertycouch.com.au to learn more.
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