Tired of working? This is how much money you need to retire in Australia, according to new research.

The reality of retiring is that it seems like it won't be a reality for many.

Right now, Australia is in a cost-of-living crisis the likes of which many Aussies have never had to deal with before. 

Data from the Australian Bureau of Statistics reported that the cost of food has risen 7.5 per cent, rent has gone up by 6.7 per cent and utility prices have risen between 12 and 14 per cent.

This adds up to an expensive life for everyone, including those who are tired of clocking into work every day to make ends meet. 

But it looks like if we want to hang up the apron for good or trade in the briefcase for a beach towel, we will need to have a pretty penny set aside to be comfortable in retirement.

Watch: Four money hacks that don't cut out your daily cup of coffee. Post continues after video.

Based on new research from Finder, Australians believe they will need almost $650,000 set aside to retire comfortably.

The comparison site conducted a survey in which they asked 1,063 people what they think they need to have saved in their superannuation to stop working. The results rounded out to $641,223. 

But personal finance expert at Finder Sarah Megginson said in a statement that many Aussies won't have nearly as much as they think (or hope) they will.

"Thousands of Aussies are facing a huge deficit when it comes to the size of the 'nest egg' they think they’ll need to retire with, and the amount they’ll actually have," she said.

"Considering the average life expectancy is rising in Australia and the cost of living has risen dramatically, your retirement savings will have to stretch even further."

The research also found that older generations believe they will need a lot more in their super to retire comfortably, with Gen Z assuming they'll need to have about $594,909.

Gen X, however, thinks they will need $751,813 and Gen Y believes they'll need to have $628,191 set aside. Baby Boomers think they will need even less set aside than every generation that follows them, with an anticipated $545,548 needed in their super accounts.

Megginson tells Mamamia the numbers are so varied because the last thing young Aussies are thinking about is their retirement.

"It’s a really hard sell to try and convince a 25-year-old that they should spend any more than five seconds thinking about their superannuation – it’s the absolute definition of a 'future me' problem," she explains. 

"Thinking about how much money you’ll need 20 or 30 or 40 years from now can seem like such a low priority, especially when our cost of living is on fire now."

Megginson has urged Aussies to double-check that their super fund is giving them the best possible value for money.

"It's really easy to forget about super because you can’t access it now, but it’s actually your money, so make sure it’s working in your best interests," she explains. 

"Don’t get stuck in a fund charging exorbitant fees, and check that you’re in the right fund for your risk profile.

"Also make sure you consolidate your funds into one – otherwise you’re paying extra fees for no reason, which means less money for you at retirement age."

She also tells Mamamia that doing your homework on the basics of investing is key to a more comfortable retirement. 

"The best investment you’ll ever make is investing in your own financial education. I know, it sounds like homework! But learning the basics – like how to set up your budget and how to manage credit card debts and BNPL – can put you in such a great position," she explains.

"It means you can make empowered money decisions, like adding a little extra to super, which is so powerful when you’re younger because you have decades of magic ahead for your money to compound.

"Small but simple habits can make such a huge difference."

Feature Image: Getty/Mamamia.

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