Australians reckon they need at least $1 million in savings to afford a comfortable retirement, if they’re on their own.

That’s according to the 2026 Rethinking Retirement report from Colonial First State.

The reality is far different.

How much do you need in savings for retirement?

According to Australia’s benchmark budgeting tool, the ASFA Retirement Standard, a single person who owns their own home needs $630,000 in superannuation savings by age 67, plus a part pension, to fund a comfortable retirement.

This means Aussies are overestimating how much they need by almost 40%.

If you’re coupled up, you need a bit more for a comfortable retirement: about $730,000 in superannuation savings.

How about a modest retirement?

Colonial’s 2025 report showed Aussies think they need just under $400,000 to have a modest retirement, if they’re single.

But ASFA says single homeowners need just $110,000 in superannuation savings, and couple homeowners need just $120,000.

That means we’re overestimating how much savings are required by at least 70%.

It’s worth noting that people who don’t own their homes need higher savings to fund a modest retirement.

ASFA puts the number at $340,000 in savings for singles renting in retirement, and $385,000 for couples.

These numbers assume retirees earn a 6% average gross investment return on their savings each year.

ASFA provides specific and detailed definitions as to what constitutes a comfortable and modest retirement.

What does retirement cost every year?

ASFA says a comfortable lifestyle costs $54,923 per year for singles and $78,566 per year for couples, if they own their homes.

A modest retirement costs $36,434 per year for singles and $52,473 per year for couples, if they own their homes.

For renters, a modest lifestyle costs $51,164 per year for singles and $69,002 per year for couples.

The Standard is updated for inflation every quarter to ensure it provides realistic cost estimates for retirement in today’s dollars.

It’s important to have good savings because the age pension does not cover life’s expenses in full.

Currently, the full age pension, including supplements, is $31,223 per year for singles and $47,070 for couples.

Australians born on or after 1 January 1957 become eligible for the pension at age 67, whether retired or not.

The pension is subject to an assets test and an income test.

If you own or earn too much, you may only qualify for a part-pension, or no pension at all.

Find out how much you can own and earn while still qualifying for the pension.

The mental load of worry

Retirement wealth specialist, Drew Meredith, a principal adviser at Wattle Partners, said Australians pay dearly, in terms of emotional and mental strain, and lifestyle, for overestimating how much they need in savings.

People delay retirement they would otherwise enjoy. Instead of enjoying a hard-earned exit from the workforce, people take on unnecessarily aggressive portfolios to chase returns they simply don’t need.

Others prematurely part with the family home or reluctantly slide back into part-time employment because a flawed projection insisted their savings weren’t big enough. None of those decisions are easily reversible.

Meredith said life after work is more affordable than people realise, adding:

Once the mortgage is gone, the children are independent, the commuting cost has stopped, the work wardrobe has stopped, and the income tax is largely off the table because of pension-phase concessions, the cost of running a household drops sharply.

Kelly Power, CEO of CFS Superannuation, said Aussies are carrying a high “mental load” worrying about their retirement savings.

She commented:

The findings suggest that for many, retirement feels like a challenge, not a milestone.

There are persistent gaps in how confident Australians feel about retirement and how prepared they are.

The report found more than 75% of Australians who received financial advice feel prepared for their retirement.

For those who have not sought advice, less than 50% feel prepared.

The post Worried about retirement savings? You need 40% less than you think: report appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Wanting some exposure to the gold sector after recent weakness? If you are, it could pay to listen to what Bell Potter is saying about the ASX gold stock in this article.

That’s because the broker believes its shares could rise materially from current levels.

Which ASX gold stock?

The gold stock that is rated highly by Bell Potter is Minerals 260 Ltd (ASX: MI6).

It is the Western Australia-based exploration and development company behind the Bullabulling Gold Project (BGP). It currently has a mineral resource estimate (MRE) of 4.5Moz. However, Bell Potter believes that recent drilling activities could support an increase in its resource estimate.

Commenting on this, the broker said:

The results are both infill and extension drilling and will be included in the August 2026 MRE update. They continue to confirm and upgrade the confidence within the current MRE and build the case for extensions beyond it. In the August MRE we primarily expect an upgrade from Inferred to Indicated categories, making more of the Resource available for conversion to Reserves, supporting the Definitive Feasibility Study (DFS) ahead of an FID in early CY27.

The additional opportunity emerging is the continuity and increasing geological understanding of high-grade zones within the footwall zones at the Phoenix and Bacchus deposits. We see potential for an improved development case that brings high grade ounces into the mine plan earlier than expected.

Bell Potter was also pleased to see the commencement of early construction and development activities at the project. It adds:

This shows a strong focus on project development and production readiness. These are key milestones that de-risk the development schedule by kicking them off as early as possible and locking in costs. We note that a key enabler is the strategic funding agreement with Franco Nevada, which sees MI6 with $250m cash (end March 2026).

Big potential returns

In light of this, Bell Potter has retained its speculative buy rating and $1.35 price target on the ASX gold stock.

Based on its current share price of 84 cents, this implies potential upside of 60% for investors over the next 12 months.

Commenting on its investment thesis, the broker said:

MI6 offers gold exposure via the 4.5Moz Bullabulling Resource, valuation uplift through discovery success, project advancement and de-risking as the BGP progresses towards production. It holds ~$250m cash, sufficient to fund to Final Investment Decision (FID) in early CY27, long-lead items and early site works. We retain our $1.35/sh Valuation and Speculative Buy recommendation.

The post This ASX gold stock could be a cheap buy with 60% upside appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It has been a positive session for a few of the ASX’s best-known dividend shares on Friday.

Woolworths Group Ltd (ASX: WOW), Coles Group Ltd (ASX: COL), and Washington H. Soul Pattinson and Company Ltd (ASX: SOL) are all pushing higher in afternoon trade.

They are often viewed as defensive or income-focused ASX shares because of their reliable earnings, dividends, and long track records.

At the time of writing, the Woolworths share price is up 0.24% to $40.03 after hitting a 52-week high of $40.10.

Coles shares are up 1.06% to $24.31 after trading as high as $24.35.

Meanwhile, Soul Patts shares are up 0.13% to $45.09 after reaching a yearly high of $45.60.

Here’s what is putting these 3 ASX 200 shares in focus today.

Woolworths shares just keep climbing

Woolworths shares are back near their best levels of the past year.

That’s a strong result for a business that was under pressure not that long ago from weaker margins, cost pressures, and a softer share price.

However, the market now appears more comfortable with the supermarket giant’s reset.

And while Woolworths still faces a competitive grocery market, investors appear to be taking a more positive view of its trading outlook.

Coles reaches fresh highs

Coles is also trading higher today and has pushed to a fresh 52-week high.

That comes after a solid run for the supermarket operator, which continues to appeal to investors looking for steadier earnings.

Coles also offers a 3% dividend yield, compared to Woolworths’ 2.24% yield.

That may help explain why some investors still prefer Coles, especially if they are looking for a more predictable income stream.

Soul Patts offers something different

Soul Patts is also edging higher today after reaching a fresh 52-week high.

Unlike Woolworths and Coles, this is not a supermarket business. It is an investment house with exposure across listed shares, private companies, property, credit, and other assets.

That gives investors a different type of defensive exposure.

The company is closely watched for its dividend record, which has made it a popular name with long-term income investors.

But with the stock now trading near the top of its 52-week range, investors are clearly paying up for that stability.

Are investors getting defensive?

Today’s moves suggest defensive and income-focused shares are still finding support.

Woolworths and Coles both benefit from everyday customer demand, while Soul Patts gives investors a diversified portfolio.

But that doesn’t mean these stocks are cheap.

All 3 are trading at 52-week highs, which means a lot of the good news is already reflected in their share prices.

The post 3 ASX dividend favourites are hitting 52-week highs today. Are investors getting defensive? appeared first on The Motley Fool Australia.

More reading

• Are Woolworths shares still a buy at a 52-week high?
• How to invest $8,000 for passive income in superannuation?
• This ASX 200 giant just hit a 52-week high. Is it getting too expensive?
• Want passive income? These 3 ASX dividend stocks could deliver
• How much is needed in superannuation to target an $11,000 monthly passive income?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.