It’s one thing to build a decent super balance – it’s another to make it stretch through two or even three decades of retirement. With people living longer and retiring earlier , the risk of outliving your super is a very real concern. And the last thing anyone wants is to run out of money when they’re least able to earn it back.

So, we're exploring a handful of strategies that could help make your superannuation last the long haul. From planning your living expenses to boosting your balance before retirement, these suggestions aim to give you more confidence about your future.

Let’s dive in.

As always, nothing in this article is financial advice. It’s here to help you ask better questions and explore your options. If you’re ever unsure, consider speaking with a licensed financial adviser who can help you build a strategy tailored to your life and goals.

1. Start with the basics: Calculate your living expenses

One of the most important steps in planning for a long-lasting retirement is knowing how much money you actually need. While that number will look different for everyone, there are some good starting points.

The Association of Superannuation Funds of Australia (ASFA) offers regular updates on the estimated costs of a “modest” or “comfortable” retirement for singles and couples. As of early 2025, they estimate a comfortable retirement costs around $52,000 per year for a single and $73,000 per year for a couple , assuming you own your home outright. (You can check out the latest figures on the ASFA website .)

But these are just benchmarks. The real key is understanding your own lifestyle needs. You can get there by tracking your current expenses and thinking about how they might change (or stay the same) once you stop working. For example:

• Will you still want to travel each year?
• Are there health expenses to consider?
• Will you be helping out family members or paying off debt?

Once you’ve crunched those numbers, you can reverse-engineer how much super you’ll need to generate the required income and for how many years. It can also help you figure out whether you need to build up additional savings, or if you might be on track to retire earlier than expected.

For more guidance on building enough super for retirement, check out our article ‘ How much super should I have to retire comfortably? ’

2. Pay off your home before retirement

Housing is one of the biggest expenses in any household. That’s why owning your home outright before retirement can have a massive impact on the sustainability of your super.

Think about it this way: retirees who still rent or make mortgage repayments need significantly more income than those who don’t. This can create serious pressure on a super balance that might already be stretched thin.

If you’re still working, think about prioritising your mortgage repayments (within reason) to improve your financial position in retirement. Not only does this cut out a major recurring cost, but it also gives you peace of mind and more flexibility with your super withdrawals later on.

Plus, home ownership can offer more than just financial advantages. It can give you a greater sense of stability and control over your living situation. And in the event you need to access equity later in life, you may be able to do so through downsizing or equity release options.

3. Make voluntary contributions while you can

The earlier you start making voluntary contributions to your super , the more time your money has to grow – and the more cushioning you’ll have later on.

There are a few ways to go about this:

• Salary sacrificing : Contribute extra money to your super from your pre-tax income. This can reduce your taxable income and potentially grow your super faster.
• After-tax contributions : You can also deposit money into super from your savings or other after-tax income. Depending on your circumstances, you might be eligible for a government co-contribution .
• Spouse contributions : If you have a partner who earns more than you, they might be able to contribute to your super and receive a tax offset in return.

Keep in mind that there are annual contribution caps to be aware of. Currently, the concessional (pre-tax) contributions cap is $30,000, and the non-concessional (after-tax) cap is $120,000.

If you’ve got unused cap space from previous years and meet certain conditions, you may also be able to make catch-up contributions.

Even modest contributions, made consistently over time, can result in a much stronger retirement outcome thanks to the power of compounding . It’s often easier to find a few hundred dollars here and there while working than to face a shortfall after you’ve stopped.

4. Build up other sources of passive income

While superannuation is a powerful tool, it doesn’t need to be your only one.

You could build up passive income streams – like dividends from shares or ETFs, rental income from investment properties , or even income from a business. This can help take the pressure off your super and give you greater flexibility in retirement.

Some people aim to "semi-retire" before accessing their super, living off investment income for a few years and letting their super grow untouched until they reach preservation age . Others use passive income to supplement super withdrawals throughout retirement, which can help the balance last longer.

Even small amounts of passive income can make a big difference. For example, $5,000 to $10,000 a year in dividends or rental income might allow you to withdraw less from your super each year, helping it stretch further.

5. Consider an income stream product in retirement

Once you do retire and access your super, how you draw down your money matters.

One option is to convert part or all of your super into a retirement income stream, such as an account-based pension or an annuity . These products are designed to pay you a regular income while potentially preserving some of your capital.

Some retirees find this structure helpful because:

• It gives them a sense of a “salary” in retirement
• It can provide better tax treatment for over-60s
• It may reduce the risk of spending too much too early

While account-based pensions are more flexible (and continue to be invested), annuities can offer more certainty by locking in income for life or for a set period.

A combination of both may suit some retirees: using an annuity to cover fixed essential costs (like utilities and groceries), while relying on an account-based pension for discretionary spending and potential growth.

As always, each option comes with pros and cons, so it’s worth getting tailored advice.

6. Adjust your spending over time

In retirement, you’re not locked into a single budget forever. Your lifestyle and expenses are likely to shift through different phases:

• Early retirement (go-go years): More active, with travel, dining out, and hobbies.
• Middle retirement (slow-go years): Fewer big adventures, more time at home.
• Late retirement (no-go years): Potential increase in medical and care expenses.

By spending more conservatively in the early years, some retirees aim to preserve their super balance for later stages when health costs may rise.

Others take the opposite approach, front-loading their lifestyle spending and preparing to cut back later. Either way, flexibility is key. Your spending doesn’t need to remain static. Reviewing your budget annually and making small adjustments may have a big cumulative effect on your super’s longevity.

7. Keep an eye on inflation

Lastly, don’t forget the silent threat to your retirement savings: inflation .

Even with modest inflation, the purchasing power of your super can decrease over time. For example, something that costs $50,000 today could cost closer to $70,000 in 20 years – even with relatively low annual inflation.

That’s why retirees often keep some of their investments exposed to growth assets, like shares or ETFs, to help their portfolio stay ahead of inflation.

This can be done within an account-based pension or by retaining investments outside of super. Either way, balancing capital preservation with growth is a delicate but essential part of maintaining your standard of living in retirement.

Learn more about how superannuation keeps pace with inflation .

So, how do you make sure your super lasts?

There’s no crystal ball when it comes to retirement. But there are plenty of steps you can take to better stack the odds in your favour.

Start by understanding how much you’ll need, and look at how your super might grow while you’re still working. It may be worth considering how home ownership, income diversification, and the way you access your super could impact your financial position in retirement. Most importantly, keep checking in on your situation – retirement is a journey, not a one-off event.

Everyone’s retirement path looks different, and that’s okay. What matters is finding an approach that works for you, with the flexibility to adjust along the way. If you're not sure where to begin, even just taking one small action – like reviewing your super statement or setting up a savings plan – can move you in the right direction.

Happy retirement planning!