Most people will need to save more in superannuation - as much as $180,000 more - to fund a comfortable retirement given the changes to the age pension, the peak superannuation body says.
The government will tighten the assets test thresholds and increase the rate at which the pension drops above the revised cut-offs, which the Association of Superannuation Funds of Australia (ASFA) says will mean most people will need to save more super.
"In most cases, people will require higher levels of private savings to ensure they have enough income to accommodate their spending needs," ASFA CEO Pauline Vamos said in a statement on Friday.
Increasing the taper rate for part-pensioners from $1.50 to $3.00 per $1,000 of assets over the revised test-free threshold will require single retirees to save $180,000 more in superannuation to fund a comfortable retirement, for a total super balance of $610,000, ASFA calculates.
A couple will need to save around $120,000 more, requiring a superannuation balance of $630,000.
Ms Vamos says the fiscal pressures on the federal budget mean it's increasingly important that people take control of their own financial future, instead of primarily relying on the government to provide financial support for their retirement.
"The earlier you can put money away, the more you will benefit from the effects of compound interest. Even if you can't afford to put extra money in now, you may be able to save on costs by consolidating your accounts, or adjusting your insurance cover to better suit your personal circumstances."
ASFA's latest retirement standard benchmark shows the cost of living for retirees stabilised in the March quarter, with a substantial fall in petrol prices offsetting an increase in the cost of pharmaceuticals and health and medical services.
Couples aged around 65 will need to spend $58,444 per year for a comfortable retirement, $80 more than in the previous quarter.
Singles need $42,569, $35 a year less than the December quarter.
IMPACT ON SUPERANNUATION OF PENSION MEASURES STARTING IN 2017:
* Singles need $180,000 more; total balance of $610,000
* Couples need $120,000 more; total $630,000
ANNUAL BUDGETS IN RETIREMENT FOR THOSE AGED AROUND 65:
COMFORTABLE LIFESTYLE
* Single $42,569
* Couple $58,444
MODEST LIFESTYLE
* Single $23,438
* Couple $33,799
ANNUAL BUDGETS IN RETIREMENT FOR THOSE AGED AROUND 85:
COMFORTABLE LIFESTYLE
* Single $38,075
* Couple $53,424
MODEST LIFESTYLE
* Single $22,798
* Couple $33,915
Source: ASFA Retirement Standard.
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