renting in retirement

It’s no secret that Australia’s superannuation system was designed with homeownership in mind. But if you’re likely to be renting in retirement, there’s no need to panic.

Renting retirees are becoming more and more common, with a 73% increase in the number of older renters between 2011 and 2021¹.

If you’re renting in retirement, it generally means more of your money will go towards rent, so your financial goals could look quite different compared to a retiree who owns their home.

That’s why it’s important to understand your options now so you can maximise your entitlements when you stop working.
 

Start planning now

In 2025, the Association of Superannuation Funds of Australia (ASFA) included renters in their Retirement Standard for the first time.

Tools like this or the Moneysmart retirement planner are great resources to calculate how much you’ll need when you stop working and plan effectively for your retirement.

Understand the Age Pension

As at March 2026, the maximum Age Pension rates are $31,223 a year for singles and $47,070 for couples.

One advantage for renters receiving the Age Pension is that they can hold $258,000 more in assets than a homeowner before the full Age Pension rate reduces. This means you can hold more in total assessable assets like super and may still be eligible for the full Age Pension. However, because your super in the retirement phase is also assessed under Centrelink's income test via deeming rules, your individual entitlement depends on both tests. Visit the Services Australia website for more information.

If you’re eligible for the Age Pension, it’s important to optimise every entitlement that comes with it.

This includes the Pensioner Concession Card, which provides cheaper health care and medicines. Other benefits, like discounts on utility bills, public transport, and car registration, depend on your state or territory. You may also be able to access discounts through your local council.

Claim Commonwealth Rent Assistance

Over 325,000 Age Pensioners currently receive Commonwealth Rent Assistance².

This benefit is automatically assessed when you claim the Age Pension, which means you don’t need to apply separately.

Renters without dependants can currently receive up to $219.40 per fortnight towards their rent.
 

Transition your super to an income stream as soon as you’re eligible

Research commissioned by HESTA³ shows that transitioning to a retirement phase product like a HESTA Retirement Income Stream as soon as you’re eligible could boost your total retirement income by 12% or as much as $99,000 compared to those who delay transitioning by four years.

This is a simple switch that could save you thousands when you’re no longer working.
 

Boost your super before you retire

By using a strategy like HESTA’s Transition to Retirement, you can make extra super contributions to maximise your retirement savings while paying less tax at the same time.

This works by restructuring the way you receive your income, so your take-home pay stays the same while you grow your super.
 

Explore income layering

One strategy to help us build a comfortable retirement is income layering. This is a bit like making a layer cake, where each layer provides a different source of income.

The base layer is your guaranteed income, which might be the Age Pension and other government benefits. The second layer could include income from your super, and the third might come from other income sources like investments, part-time work or selling assets.

Together, these layers can help you create a reliable and sustainable stream of income in retirement.
 

Share your space

If you’re renting in retirement with limited super, you might consider living arrangements like:

• shared housing
• community or social housing
• relocating to lower-rent areas (i.e. outside capital cities)
• retirement villages with affordable entry options.

Ask an expert

As a HESTA member, you can learn more about super and retirement at our regular information sessions.

You can also speak to a super expert about your super at no extra cost.

Advice about transitioning to retirement or setting up an income stream costs $300 for singles and $500 for couples. And if you need comprehensive financial advice, we can help with that too.

Professional advice can make a real difference to your retirement, regardless of your account balance. Getting advice early and understanding every entitlement available to you could help you transform your financial future.

You can also make sure that you’re maximising your retirement entitlements. HESTA partner Retirement Essentials has developed a handy checklist that you can review now, file for later, or share with a friend.
 

Find support outside super

Ask Izzy is a free directory that helps Australians search for local support services.

Through Ask Izzy, you can search over 450,000 services like financial assistance, meals, mental health counselling, shelter, family violence support, and much more.

HESTA has partnered with Infoxchange, the not-for-profit social enterprise behind Ask Izzy, to help you connect to services close to you.

Find local support services.

¹ Research commissioned by Housing for the Aged Action Group and conducted by Swinburne University of Technology, Western Sydney University and Curtin University, August 2023.

² Australian Institute of Health and Welfare, Commonwealth Rent Assistance in Australia: quarterly data, February 2026

³ Research conducted for HESTA by Laneway Analytics, December 2025. This is an illustrative projection and does not represent a guaranteed outcome. Individual results will vary depending on your balance, age, investment returns and personal circumstances.

Retirement Essentials Pty Ltd  (ABN 35 615 383 232) is an authorised representative of SuperEd Pty Ltd AFSL 468859. Third-party services are provided by parties other than H.E.S.T. Australia Ltd and under the terms and conditions of those parties. H.E.S.T. Australia Ltd does not recommend, endorse or accept any responsibility for the products and services offered by third parties or any liability for loss or damage incurred as a result of services provided by third parties. You should exercise your own judgment about the products and services being offered. This information is not intended as financial product advice, legal advice or taxation advice. It does not take into account your personal situation, goals or needs and you should assess your own financial situation, consider if the information is suitable for you and ensure you read the relevant Product Disclosure Statement (PDS) if you choose to make any changes to your financial situation. It is always advisable to consult a financial adviser before making financial decisions.

Ask Izzy is owned and operated by Infoxchange ABN 74 457 506 140. Third-party services are provided by parties other than H.E.S.T. Australia Ltd and under the terms and conditions of those parties. H.E.S.T. Australia Ltd does not recommend, endorse or accept any responsibility for the products and services offered by third parties or any liability for loss or damage incurred as a result of services provided by third parties. You should exercise your own judgment about the products and services being offered.