Protecting your purchasing power in retirement

From the weekly grocery shop to insurance premiums and fuel prices, many Australians are feeling the impact of rising living costs. For a lot of people, it’s not just about what things cost today, it’s about whether their money will still stretch far enough in the years ahead.

This question comes up often when members think about retirement. Not just how much they’ll have, but whether their savings will keep pace with everyday expenses over time and support the lifestyle they want. 

That’s why inflation and the cost of living matter when it comes to your super.

Rising living costs and retirement benchmarks

The ASFA Retirement Standard is often used as a guide to help Australians understand what retirement might cost in today’s dollars. Recent updates show that the superannuation balances needed for a comfortable retirement have increased — largely reflecting higher prices across essentials like food, healthcare, utilities and insurance.

For homeowners aged 67, ASFA estimates that a comfortable retirement¹ requires around:

• $630,000 for singles, and
• $730,000 for couples.

For many members, figures like these can prompt questions such as ‘Am I on track?’ or ‘Will this be enough if costs keep rising?’

It’s important to remember these are benchmarks, not targets. Retirement isn’t one size fits all, and what you need will depend on your lifestyle, health, housing and income sources. Used the right way, benchmarks are a reference point not a judgement.

Why inflation matters — beyond the numbers

Inflation is the rise in the cost of everyday goods and services over time. When prices go up, the buying power of each dollar falls, meaning the same amount of money doesn’t go as far as it once did.

When members talk about feeling uncertain about retirement, it often comes back to this. Even if their super balance grows, there’s concern about whether it will maintain its real value over time.

That’s why inflation matters in three key ways: 

• It affects spending power

  Rising prices can quietly erode what savings are worth in real terms.

• It shapes how long savings might last

  Higher living costs can mean needing more income over time to maintain the same lifestyle.

• It shifts how people think about retirement confidence

  For many members, confidence isn’t just about market performance, it’s about affordability and reliability.

How CSC invests with inflation in mind

“We deliver dependable, long-term gains in purchasing power—your savings have grown faster than inflation— providing a surer path to maintaining a comfortable retirement-living standard … because your superannuation is more than just a mandatory savings account or a paper gain or loss at any point in time. It is the promise of dependable income to your future retired self – so you can live the way you want, not just the way you need.” *

– Alison Tarditi, CSC Chief Investment Officer

*Inflation rates change over time, and future real returns may be positive or negative. Investment returns are not guaranteed.




There is always a risk that inflation may exceed the return on an investment, particularly over shorter periods. CSC’s investment governance focuses on managing risk and is driven by our primary investment objective: to maximise long term real returns (returns above inflation) within strictly defined risk limits.

What this means in practice is focusing on resilience over time. CSC constructs each investment option by combining different assets and considering how they work together, including:

• whether an asset has the potential to deliver returns above inflation
• how it contributes to diversification and stability
• how it supports sustainable income over market cycles

This long term approach reflects what many members tell us matters most — not chasing short term gains but having confidence that their savings are working consistently behind the scenes.

Confidence comes from clarity

When people feel uncertain about retirement, it’s often less about lack of interest and more about lack of clarity. Members frequently want to understand:

• what their balance could mean in terms of future income
• how rising costs might affect their lifestyle over time
• what practical steps could help them feel more prepared.

That’s why CSC focuses on clear information, simple tools and long term thinking — helping members make sense of how today’s decisions can support your future retirement income.

What you can do next

Inflation and cost of living may be outside individual control, but there are steps you can take to feel more informed and confident.

• Check how you’re tracking

  Use the Retirement Modeller to explore different retirement scenarios and see how your savings compare with common benchmarks. You can also log in to Navigator to see your current balance.

• Bring your super together

  If you’ve changed jobs, consolidating your super can make it easier to manage and may help reduce duplicate fees².

• Get the right support

  For many members, a conversation makes all the difference. At no extra cost, PSSap members can speak to a CSC Super Specialists and ADF Super members with Member Educators, for help understanding super, investments, insurance and contributions.

• Consider extra contributions — when it works for you

  Even small, consistent contributions can add up over time thanks to compounding returns³.  

Looking ahead

Rising living costs and inflation can make retirement planning feel more complex and for many members, more personal. CSC’s focus remains on supporting dependable income and protecting purchasing power over the long term, so your super can help you live the way you want in retirement, not just manage day to day.

^[1] Source: Association of Superannuation Funds of Australia (ASFA), Retirement Standard, March quarter 2026. These figures also assume that the retiree/s will draw down all their capital and receive a part Age pension. These figures are a general guide only and do not take into account individual circumstances or financial needs. 

^[2] Before consolidating, consider whether this is right for you, including the potential loss of insurance cover and any other relevant benefits. Consider the PDS and TMD at csc.gov.au. You may also wish to obtain financial advice. 

^[3] Before making additional contributions to your super, consider whether this is right for you, having regard to your personal objectives, financial situation or needs. Please also note there are caps on how much you can contribute each year, and there may be tax implications if you exceed these caps. Find out more here. You may also wish to obtain financial advice.