How much super do I need to retire in Australia?
The amount of super you need to support your retirement will depend on what kind of lifestyle you’re hoping to enjoy and how much income you’ll be earning in addition to your super savings. Income from the Age Pension, part-time work and other financial investments will affect the amount of super you need to retire comfortably.
The Association of Superannuation Funds of Australia (ASFA) provides yearly total income recommendations based on the type of retirement you’re aiming for. Depending on how much income you expect to receive from other sources, you can then estimate how much super you’ll need to reach the “comfortable” or “modest” benchmarks.
The table below gives you an idea of how much retirement income you might need to enjoy a comfortable, or modest retirement, and compares these benchmarks against how much you can receive on the Age Pension.
| Comfortable lifestyle | Modest lifestyle | Maximum rate of Age Pension | |
| Single | $52,383 | $33,386 | $29,874.00 |
| Couple | $73,875 | $48,184 | $22,518.60 (each) a year |
Budgets for various households and living standards for those aged 65-84 (March quarter 2025)
Source: ASFA Retirement Standard
The amount of super you need will also depend on what you’re earning from full or part-time work, the Age Pension and other investments.
To enjoy a comfortable retirement, AFSA suggests that single people will need $595,000 in super savings at age 67, and couples will need $690,000. But your own individual goal will depend on your other income streams and personal situation.
In addition to the total amount of super you have, the way you access it once you retire can also impact your retirement wealth. For example, your super earnings might be subject to more tax if you plan to withdraw lump sums, compared to setting up a super income stream like an account-based pension.
What’s the difference between a comfortable and modest retirement in Australia?
A comfortable retirement means you can look forward to a broad range of leisure and recreational activities, with a good standard of living. ASFA guidelines suggest you’ll be able to purchase things like private health insurance, a reasonable car, good clothes and a range of electronic equipment. You’ll enjoy domestic and occasionally international, holiday travel.
According to ASFA, you can expect a modest retirement to be better than living on the government Age Pension. However, you’ll only be able to enjoy a fairly basic lifestyle.
See the charts below to get a more detailed understanding of what sort of services and luxuries you might be able to enjoy, based on your retirement savings.
| Comfortable lifestyle | Modest lifestyle | Age Pension | |
| Medical | Top level private health insurance, doctor/specialist visits, pharmacy needs | Basic private health insurance, limited gap payments | No private health insurance. |
| Technology | Fast reliable internet/telco subscription, computer/android mobile/streaming services | Basic mobile, modest internet data allowance | Very basic mobile and limited internet connectivity |
| Transport | Own a reasonable car, car insurance and maintenance/upkeep | Owning a cheaper, older, more basic car | Limited budget to own, maintain or repair a car |
| Lifestyle | Regular leisure activities including club membership, cinema visits, exhibitions, dance/yoga classes | Infrequent leisure activities, occasional trip to the cinema | Rare trips to the cinema |
| Home | Home repairs, updates and maintenance to kitchen and bathroom appliances over 20 years | Limited budget for home repairs, household appliances | Struggle to pay for repairs, such as leaky roofs or major plumbing problem |
| Haircuts | Regular professional haircuts | Budget haircuts | Less frequent haircuts, or self haircuts |
| Home cooling and heating | Confidence to use air conditioning in the home, afford all utilities | Need to keep a close watch on all utility costs and make sacrifices | Limited budget for home heating in winter |
| Eating out | Occasional restaurant meals, home delivery meals, take away coffee | Limited meals out at inexpensive restaurants, infrequent home delivery or take away | Only local club special meals or inexpensive take away |
| Clothing | Replace worn out clothing and footwear items, modest wardrobe updates | Limited budget to replace or update worn items | Very basic clothing and footwear budget |
| Travel | Annual domestic trip to visit family, one overseas trip every seven years | Annual domestic trip or a few short breaks | Occasional short break or day trip in your own city |
Annual budgets for households and living standards for those aged 65-84 (March quarter 2025)
Source: ASFA Retirement Standard
Do I need a second income stream in retirement?
This will come down to your personal circumstances, and what kind of lifestyle you’re hoping to enjoy when you retire.
Planning ahead is a great idea if you want to supplement your super with additional streams of income. For example, you could:
- build up your financial investments
- top up your super with salary sacrifice or a personal super contribution
- find part-time employment
- apply for the Age Pension.
What government benefits could I receive?
When you retire, you might be eligible for government benefits like the Age Pension or a concession card. This will depend on your age, your residency status, and your financial situation.
As of 20 March 2025, the maximum Age Pension is:
- $1,149 per fortnight for singles ($29,874 a year).
- $866 each per fortnight for couples ($22,516 a year).
If you’re eligible for the Age Pension, you may also be able to access additional government payments, such as:
- Carer allowance: If you provide daily care to an elderly person or someone with a disability or a serious illness.
- Rent assistance: To help cover your rent if you’re renting privately.
If you’re receiving the Age Pension, the government will automatically send you a Pensioner Concession Card. Even if you’re not eligible for the Pensioner Concession Card, you might still be able to get a Commonwealth Seniors Health Card, subject to being eligible.
Either of these cards will allow you to access:
- cheaper medicines on the Pharmaceutical Benefits Scheme (PBS)
- bulk billing for doctor’s appointments
- reduced out of hospital expenses through Medicare.
Note that there may be additional concessions from state or territory governments, or from local councils and businesses.
How can I set myself up for the retirement I want?
Your first step will be to create a clear vision for the retirement you want. Ask yourself: What type of lifestyle do you want to enjoy in retirement? Modest, comfortable, or would you like even more freedom? Use the table above to figure out what you’d like your retirement to look like.
Secondly, are you currently on track to achieve this goal?
If you’re not quite on track to reach your goal, you can start thinking about strategies to boost your retirement wealth. This might include topping up your current super savings, working part-time, or building up your other financial investments.
If you’re unsure about the best way to set yourself up for a retirement which supports your personal goals, a financial adviser can help steer you in the right direction.
Calculating how much super is needed for retirement
A retirement calculator helps you estimate how much money you’ll need for the retirement lifestyle you want – and how much money you might have when you retire, based on your super savings and other assets.
The calculator will also show you the impact of potential investments, fees and voluntary contributions to your super and your retirement wealth.
Consider the ASFA benchmarks for a modest and comfortable retirement, other income streams like part-time work or investments and your own financial goals when determining how much super you’ll need when you retire.
How can I grow my super?
Topping up your super is a good way to boost your retirement wealth and may provide tax-concessions in the short term.
Currently, your employer must pay 12% of your ordinary time earnings into your nominated super fund. These contributions are called Superannuation Guarantee (SG) contributions. However, there are a few different ways you can contribute more of your own money towards your super.
As super compounds each year, even a small contribution can go a long way towards building up your retirement wealth so you can enjoy the type of retirement you want.
If you’re still not sure about the best way to set yourself up for retirement, consider speaking with a financial adviser. They’ll review your personal situation and help you find the solution which best suits your life stage, financial goals and risk tolerance.
Source: Colonial First State
