For many small and medium business owners, retirement planning often takes a back seat to running the business. Cash flow, staff, customers and growth priorities tend to come first, and superannuation contributions are frequently irregular or minimal. However, new figures from the Association of Superannuation Funds of Australia (ASFA) highlight why retirement planning deserves greater attention from business owners.

According to ASFA, an Australian couple retiring at age 65 now needs $76,505 per year combined to achieve a comfortable retirement. Singles require $54,240 per year. To fund this lifestyle, a couple needs around $690,000 in combined superannuation, while a single person requires $595,000; this is also assuming they own their home outright.

For SME owners who may be relying on the eventual sale of their business or property, these figures provide a critical reality check.

Why SME Owners Face Unique Retirement Challenges

Unlike employees who receive compulsory super contributions from their employer, SME owners often control their own contributions. During busy or uncertain periods, super payments can be delayed or reduced in favour of short-term business needs.

Many business owners also assume their business itself will fund their retirement. While this can be true, business exits are rarely guaranteed. Market conditions, succession challenges and unexpected events can all affect the value of a business at sale. ASFA’s benchmarks show that superannuation remains a vital safety net, even for those planning to sell their business later.

What “Comfortable” Means for Business Owners

A comfortable retirement, as defined by ASFA, allows retirees to maintain a lifestyle that includes:

• Occasional domestic and international travel
• Private health insurance
• Reliable vehicles and household upgrades
• Dining out, hobbies and social activities
• Financial flexibility for unexpected costs

For SME owners who are used to financial independence and lifestyle flexibility, falling below this standard can feel particularly restrictive.

Practical Steps for SMEs

The good news is that SME owners often have greater control and flexibility when it comes to building retirement savings. Some practical strategies include:

• Making regular super contributions, even during quieter trading periods
• Using salary sacrifice or personal deductible contributions to boost balances tax-effectively
• Leveraging business profits strategically in stronger years to catch up on contributions
• Reviewing investment options and fees to ensure super is working efficiently

Starting earlier can make a substantial difference. Small, consistent contributions over time can significantly reduce reliance on a single exit event or asset sale later.

Planning Beyond the Business

ASFA’s figures are not meant to discourage business ownership, but to provide a clear benchmark. With Australians spending 20–30 years in retirement, planning solely around a business sale can be risky. Superannuation provides diversification, tax efficiency and long-term security- complementing other retirement assets rather than replacing them.

The Bottom Line for SME Owners

ASFA’s data makes one thing clear: a comfortable retirement requires more than good intentions. With $690,000 needed for couples and $595,000 for singles, SME owners should treat superannuation as a core part of their business and personal financial strategy. By taking control early and building super alongside the business, SME owners can create greater certainty, flexibility and confidence in retirement, whatever the future holds.

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