Retiree super spending to reach $121b in 2026, supporting 485,000 jobs

Australian retirees will spend an estimated $121 billion from superannuation in 2026, supporting more than 485,000 full-time equivalent jobs across the economy.

The projections were published in a report by economic consultancy ACIL Allen, commissioned by the Super Members Council and launched in Canberra. The findings drew on a survey of around 2,000 Australians aged 60 or over.

The council said the research is the first to measure how spending by retirees generates economic activity across specific industries and payrolls.

Retail trade will receive the largest employment benefit, with 75,300 jobs supported by retiree expenditure in 2026. Accommodation and food services followed at 58,500 jobs, while construction accounted for 52,400 positions.

Manufacturing will see 39,500 jobs supported by the spending, professional, scientific and technical services 38,900, and financial and insurance services 33,800. At the smaller end, mining accounted for 1,400 jobs and education and training 2,100.

Geographically, New South Wales will account for the largest share of superannuation expenditure in 2026 at $44.5 billion, supporting 181,100 jobs.

Victoria follows with $28.5 billion in spending and 123,000 jobs.

Queensland retirees are projected to spend $22.3 billion, backing 90,600 positions. Western Australia recorded $10.8 billion supporting 33,300 jobs, while South Australia showed $9.9 billion and 40,100 jobs. Tasmania accounted for $2.5 billion and 10,700 positions, while the Australian Capital Territory registered $2.6 billion and 6,400 jobs.

The Northern Territory showed $100 million in spending supporting 200 jobs. The report noted this figure came from a small sample of fewer than 10 respondents with superannuation income.

The analysis found retiree spending flows directly into supermarkets, food producers, transport, building trades, tourism, insurers and household utilities.

"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," Super Members Council chief executive Misha Schubert said.

The council said retirement benefit payments in 2025 were more than double the total paid out through the Age Pension.

The findings arrive as Australia's compulsory superannuation system holds roughly $4.8 trillion in assets, accumulated over more than three decades. Around 17 million Australians currently hold superannuation accounts.