Retirement is one of the most important long-term financial goals most Australians will ever plan for. But not all retirements are the same and the amount of superannuation you need, plus your Centrelink age pension entitlements, can look very different depending on whether you:
✅ Own your home or rent,
✅ Are single or part of a couple, and
✅ Your living costs or goals in retirement.
Understanding these differences is a vital part of smart financial planning in Bendigo and essential if you want to live comfortably in your later years.
Why homeownership matters in retirement
Recent research shows that retirees who are renters need substantially more superannuation to achieve the same lifestyle as those who own their home outright. In fact:
· A typical single retiree who rents may need around $659,000 in super to enjoy a comfortable retirement.
· A single homeowner with a mortgage-free house may only need around $322,000 in super for the same lifestyle.
· For couples, the difference is also significant — $786,000 for renters versus $432,000 for homeowners combined.
This gap exists primarily because rent continues as an ongoing expense throughout retirement, while a mortgage-free home eliminates housing payments and reduces living costs.
In simple terms:
Owning your home reduces your overall retirement income needs, because you don’t have ongoing rental costs eating into your budget.
How living arrangements affect Centrelink Age Pension
Another big difference between homeowners and non-homeowners comes from how Centrelink assesses your assets for the Age Pension.
Under Centrelink rules:
· Your principal residence (your home) is generally not counted as an asset for pension purposes.
· Another important difference between homeowners and non-homeowners relates to how Centrelink assesses assets for the Age Pension. While a person’s principal residence is not counted as an asset, non-homeowners are allowed to hold higher levels of assessable assets before their pension is reduced. This higher threshold is intended to recognise the ongoing cost of rent in retirement. However, despite this concession, non-homeowners often still require more superannuation overall, as rental costs continue throughout retirement and are only partially offset by government assistance.
✅ A homeowner might qualify for pension benefits even with substantial savings, because the value of their home is exempt.
❌ A non-homeowner (renter) with similar savings might receive a reduced pension entitlement or even be ineligible, because more of their net worth counts toward Centrelink’s asset test.
This means that not owning your home in retirement often results in lower Age Pension support, increasing your reliance on personal savings or superannuation.
Singles vs couples: different retirement goals
Your relationship status also influences how much you need to save:
Single retirees
Singles generally:
· Need less total super than couples to support two people, but
· Face potentially higher per-person costs if renting.
In the research figures:
· Single renters need around $659,000 in super.
· Single homeowners need around $322,000.
Couples
Couples often benefit from shared living expenses, but they:
· Need a higher combined superannuation balance overall, because two people are drawing on retirement income.
For example, couples renting require around $786,000 vs $432,000 for homeowner couples.
Additionally, Centrelink’s pension assets and income tests treat couples differently to singles, generally offering a slightly higher total assets threshold before pension reductions occur.
Why renters often need more super
The key reason renters need significantly more super is straightforward:
Rent doesn’t go away in retirement, and rental costs in Australia — including regional centres like Bendigo — are rising faster than government rent assistance.
Government support for renters in retirement — such as Commonwealth Rent Assistance — exists, but it often covers only a small proportion of actual rent paid. This means:
✅ Renters often have higher ongoing living costs in retirement,
✅ They therefore need larger super balances to maintain quality of life.
How financial planning in Bendigo can help you retire comfortably
Given these differences, thoughtful retirement financial planning is essential — especially when considering:
Rollover strategies
Making sure your super is in the right structure and investment mix to suit your retirement goals.
Maximising Centrelink entitlements
Reviewing how your assets and income affect your potential age pension — and planning to optimise entitlements.
Planning for housing costs
Understanding whether renting or owning will influence your later-life cash flow, and modelling outcomes accordingly.
Scenario testing for singles vs couples
People approaching retirement have different needs so a tailored financial plan helps ensure you’re not under-estimating what you need.
Key takeaway for Bendigo retirees
✔ Homeowners generally need less super to retire comfortably than renters.
✔ Centrelink pension eligibility and pay-outs are often more favourable for homeowners.
✔ Renters may need two-to-three times more super to enjoy the same retirement lifestyle.
✔ Singles and couples should plan differently — because retirement needs and pension outcomes are not the same.
This is why retirement advice tailored to your personal circumstances — including homeownership, relationship status, and living costs — is so important.
Final thoughts
Whether you’re approaching retirement, midway through your career, or thinking about how long-term decisions today affect your later years, smart financial planning can make a meaningful difference to your retirement outcomes.If you’d like help understanding what this means for your situation — including modelling how much super you’ll need, how your home affects your pension, and how to optimise your retirement income — reach out here to make an appointment.