Retiree super spending injects $121bn into Aussie economy

New research has found retirees will spend close to $121 billion from their superannuation in 2026, bolstering the Australian economy and supporting jobs.

Commissioned by the Super Member Council (SMC) and conducted by ACIL Allen, the research surveyed around 2000 Australians aged 60 or over.

New South Wales will see the biggest super spending of $44.5 billion this year, supporting close to 181,000 jobs. The state of Victoria will spend $28.5 billion, supporting 123,000 jobs.

The research also found the super system supports retirement spending worth double that of the Age Pension each year, significantly lifting retiree living standards and their spending power.

"Australia's super system is a great economic success story," SMC chief executive Misha Schubert said.

"It is giving millions of Australians much stronger financial security in retirement, with more money to live on - and their higher spending strengthens the broader economy, supporting jobs and businesses in communities nationwide."

Australia's super system has now grown to $4.8 trillion after three decades of compulsory super. In 2025, retirees were paid more than twice as much in super retirement benefits as they received through the Age Pension.

"And their retirement savings - invested and compounded over decades - are now flowing back into the whole economy through super-enabled retiree spending on everyday goods and services," SMC said.

Schubert added the findings reinforced the long-term value of safeguarding and strengthening the compulsory superannuation system on which 17 million everyday Australians now rely.

This comes as the One Nation recently proposed plans to give Australians paying rent or a mortgage the choice to take one quarter of their future compulsory super contributions as a tax-advantaged 3% pay boost for up to three years.

Industry bodies and an economist have criticised the plans, warning the policy would fuel inflation and leave workers significantly poorer in retirement.

"Every time a retiree uses their super savings to buy groceries, pay a utility bill, visit family, take a holiday, or make a long-awaited home improvement, their spending helps power Australian jobs and support local businesses," Schubert said.

"Those benefits ripple through communities large and small, from our biggest cities to regional and rural Australia."