How to strengthen your finances in retirement

With inflation and cost-of-living pressures proving difficult to budge, many retirees are understandably concerned about their finances.

While inflation increased by 3.8% in the year to December 2025, many items in the typical retiree’s budget rose much more sharply – electricity up 21.5%, coffee and tea up 15.3% and domestic travel up 9.6% to name a few.

As a result, the ASFA Retirement Standard budgets show that homeowners aged 65 and older now need $77,375 annually for a comfortable retirement as a couple and $54,840 for a single. The lump sum required to fund this are $730,000 for couples and $630,000 for singles.

Even if your household budget hasn’t felt the squeeze from recent price rises, it still makes sense to check you’re doing everything you can to boost your retirement income and avoid unnecessary expenses.

1. Review your budget

If you haven’t done so in a while, carefully review your household budget to plug any leaks.

Simple changes like checking whether your health, car and home insurance are still set at appropriate amounts and comparing policies when they are due for renewal can help reduce your premiums.

Consider eliminating recurring expenses you aren’t using, such as gym memberships, streaming services and magazine subscriptions.

Regular small expenses can add up to a lot over the course of a year, and this money can be redirected to other, more essential – or pleasurable – retirement expenses.

Trimming your budget will help increase the longevity of your nest egg.

2. Check how long your savings might last

If you’re unsure whether you’re spending too much or could afford to spend more, there are tools that can help.

ASIC’s Moneysmart Retirement Planner can help you work out how long your retirement savings will last, given your current spending. Your super fund may also have useful retirement calculators.

3. Recheck your eligibility for the Age Pension

If you’re a self-funded retiree who has been ineligible for even a part Age Pension in the past, now is a great time to recheck your financial position.