The Sandwich Generation and the True Price of Retirement

Last Updated on September 23, 2025 by Rose Ann

Retirement has long been imagined as a peaceful chapter in life, but for many Australians, the rising cost of living is making that vision more uncertain.

According to the latest research from the Association of Superannuation Funds of Australia, the price tag for a “comfortable” retirement has ballooned by more than $13,000 over the past five years.

Today, couples 65 and over need upwards of $75,000 annually, while singles require around $53,000. This is more than just a numbers game — it’s reshaping how people feel about their financial futures.

As AMP retirement expert Ben Hillier noted,

“Only two in five women are confident about retirement compared to three in five males. And even more concerning perhaps are those single females, especially those with children, who are amongst the lowest levels of confidence of all Australians.”

That confidence gap is critical. Women, particularly those balancing work, childcare, and even caring for elderly parents — the so-called “sandwich generation” — find themselves stretched thin.

Take Sydney mother of two, Sinta Velasco, who supports her children and parents while navigating a single-income household. For her, every dollar has to be stretched, whether it’s cutting subscriptions or trimming back on dining out. Her story reflects the everyday trade-offs many are making now in the hope of easing tomorrow’s worries.

Those partnered, and particularly those who own their home, feel more secure than singles or renters. Meanwhile, divorced or separated women often face the lowest levels of confidence of all.

As Hillier points out, retirees may be vulnerable for decades. Without secure housing or sufficient nest eggs, exposure to rising rents and inflation could make later years far more financially fraught than expected.

But there’s a silver lining here: awareness is growing. Conversations about financial preparation, especially among those in midlife, are prompting many to seek guidance earlier — whether via financial advisors, support networks, or resources tailored for seniors planning ahead.

And there are strategies to help stretch savings further. For instance, exploring decumulation strategies can make money last longer in retirement, ensuring greater stability even as costs rise.

This matters today because retirement confidence isn’t just about having enough money; it’s about peace of mind. Knowing you’re prepared allows retirement to be the enriching, fulfilling stage of life it’s meant to be.

If you’re curious about how these challenges might affect you — or how to strengthen your own retirement plan — you can dive into the full SBS article here.