MEDIA RELEASE
Sydney, 21 May 2025 – As 70% of 40-60 years fear they will outlive their retirement savings, and half admit to not having a retirement plan at all1, MetLife is urging a rethink of retirement planning strategies. In response to rising retirement costs, MetLife is also spotlighting its retirement income offering, designed to provide a guaranteed income stream for life, helping Australians better manage longevity risk.
The latest data available from the Association of Superannuation Funds of Australia (ASFA) Retirement Standard (PDF) indicate that the cost of a comfortable retirement has increased, with a couple aged 65 to 84 now needing $73,077 annually and a single person requiring $51,805. These figures, which represent a 1.3% increase over the last 12 months, underscore the importance of taking immediate action to boost savings for those yet to retire. To support this level of retirement income, ASFA estimates that a superannuation balance of approximately $690,000 for couples and $595,000 for singles is required at retirement age (67).
MetLife’s Chief Insurance Officer Meray El-Khoury emphasises the urgency of this issue.
ASFA’s data further highlights the financial strain many retirees face, particularly single individuals and women. While a single retiree needs almost $52,000 annually for a comfortable lifestyle, women are more likely to fall short of this target compared to men. Due to factors such as career breaks for caregiving and lower average wages, many women end up with around 20% lower superannuation balances at retirement than men . This often leaves them closer to the “modest lifestyle” budget of $32,897 per year.
To help members bridge the gap, MetLife is encouraging Australians to optimise superannuation through the power of compounding interest and well-aligned investment strategies. Early engagement and the right asset allocation can significantly grow balances over time.
Ms El-Khoury highlights the importance of understanding the impact of living expenses on retirement savings and access to advice, particularly around understanding the interaction between superannuation, expenses and investment risk: “Tools like the MoneySmart calculator and financial advice through super funds can empower members to take action before it is too late.”
Beyond traditional savings approaches, MetLife advocates for the incorporation of longevity products in retirement plans. These products ensure a consistent stream of income, no matter how long someone lives. Ms El-Khoury says, “We’re working closely with funds to offer tailored retirement solutions that provide the peace of mind that help members retire with clarity and confidence.”
MetLife remains dedicated to partnering with super funds to help their members navigate these challenges and secure their financial future. For further information on how MetLife can support your members plan for their retirement, visit our website.
About MetLife
MetLife Insurance Limited (MetLife), an affiliate of MetLife, Inc., is a specialist provider of life insurance to affinity partners, superannuation trustees and employers in Australia. MetLife has expertise in designing and executing direct insurance programs for partners’ customers and insurance solutions to meet the needs of specific member groups. MetLife has been a specialist provider of life risk insurance products in Australia since 2005. For more information, visit metlife.com.au.
MetLife, Inc. (NYSE: MET), through its subsidiaries and affiliates, is one of the world’s leading financial services companies, providing insurance, annuities, employee benefits and asset management to help its individual and institutional customers navigate their changing world. Founded in 1868, MetLife has operations in more than 40 countries and holds leading market positions in the United States, Japan, Latin America, Asia, Europe and the Middle East. For more information, visit metlife.com.
