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How much do you need to retire comfortably in Australia?
It’s a question almost everyone asks when planning for life after work – and the answer isn’t one-size-fits-all.
Your retirement savings goal depends on factors like your lifestyle goals, essential living expenses, healthcare needs, and how long you expect to live. Planning ahead can make the difference between just covering your basic costs and enjoying the retirement you’ve always dreamed of.
To help you plan, the Association of Super Funds of Australia (ASFA) publishes quarterly ‘Retirement Standard' research. These benchmarks can give you a clear idea of the income you’ll need to match your lifestyle expectations in retirement.
Understanding retirement expenses
Understanding the costs that will shape your lifestyle is key to retirement planning. Here’s a breakdown of the main expenses:
How much do I need to save for retirement?
Retirement planning starts with knowing how much income you’ll need to support your desired lifestyle. The ASFA Retirement Standard provides benchmarks for two common lifestyles: modest and comfortable.
What do these lifestyles look like?
Modest lifestyle
A modest lifestyle includes basic expenses, occasional holidays in Australia, and owning a car, but requires budgeting for extras like dining out or overseas travel.
Comfortable lifestyle
A comfortable lifestyle offers more recreation, private health insurance, extended travel, and comforts like air conditioning in summer.
ASFA Retirement Standard tablesi
Budgets for various households and living standards for those aged 65-84
Modest | Comfortable | |
|---|---|---|
Singles | $34,522 a year | $53,289 a year |
Couples | $49,992 a year | $75,319 a year |
Comfortable lifestyle:
- A couple who own their home outright needs combined savings of $690,000i, while a single person who owns their home outright needs $595,000i. This assumes retirees will draw down all their capital and receive a part Age Pension.
Modest lifestyle:
- A modest retirement requires about $100,000i in savings for singles or couples who own their home outright, assuming the Age Pension covers most costs outlined in the modest AFSA budget.
i Association of Superannuation Funds of Australia (ASFA) - Retirement Standards, June quarter 2025
Finding your balance
The ASFA Retirement Standard benchmarks are a great starting point to understand modest and comfortable retirement lifestyles.
Understanding these benchmarks can help you:
- Adjust your savings or superannuation strategy.
- Plan for a retirement lifestyle that suits your goals.
Try our Retire with Confidence tool to estimate how much income you might need.
Retire with Confidence tool
A guide to income in retirement
This guide contains five key steps to building a comprehensive retirement income plan to provide you with a regular income for life.
What does the ASFA Retirement standard include?
The ASFA Retirement Standard outlines the costs of living in retirement, covering both everyday expenses and occasional costs, such as:
- Groceries: Food and household essentials.
- Medicines: Out-of-pocket healthcare costs.
- Insurance: Health, home, and car premiums.
- Household bills: Utilities like electricity, water, and internet.
- Holidays: Occasional travel within Australia or overseas.
It's also important to know what the ASFA Retirement Standard doesn't include:
- Mortgage payments: The estimates assume you own your home outright and have no ongoing housing costs.
Understanding what’s included and excluded can help you assess how these benchmarks align with your retirement goals.
Learn more about the ASFA Retirement Standard or use our Retire with Confidence tool to help plan your retirement income.
Factoring in inflation and longevity
Inflation and longevity are key considerations in retirement planning. Rising costs over time can reduce the purchasing power of your savings, making it harder to cover your expenses. Meanwhile with Australians living well into their 80s or 90sii, your retirement funds may need to last 20-30 years - or even longer.
Planning ahead is essential to protect your savings and maintain your lifestyle.
Explore our Guide to income in retirement to learn how to safeguard your savings and plan for a secure future.
“Australians are living well into their 80s or 90s, meaning your retirement funds may need to last 20-30 years—or even longer.”
ii Sources: ABS 2014a; ABS 2024; Table S9.1.
Determining retirement age and life expectancy
The age you retire significantly impacts how much you’ll need to save. Retiring earlier - at 60, for example - means your savings must last longer compared to retiring at 67, when you may also qualify for the Age Pension.
Australians are living longer, often into their late 80s or 90sii. To ensure your savings last 20-30 years - or more – start planning ahead.
Learn more about the retirement age in Australia and how it affects your financial planning.
Assessing your current retirement savings
Regularly reviewing your retirement savings is essential to staying on track for a comfortable future. Start by checking your superannuation balance and other investments to help ensure you’re meeting your retirement income goals.
Key steps to consider:
- Review your investments: Consider if they align with your retirement timeline and risk tolerance. If you’re nearing retirement, a cautious approach can help protect your savings while still growing your income.
- Track your progress: Compare your current savings to your retirement goals. Are you saving enough to cover essential expenses and your desired lifestyle?
If you’re unsure whether your savings and investment strategy will provide enough income, a financial adviser can:
- Evaluate your portfolio.
- Identify savings shortfalls.
- Recommend strategies to get back on track.
Taking action now to feel more confident about your financial future. Use our Retire with Confidence tool to see if you're on track to meet your goals.
Setting retirement savings goals
A clear retirement savings plan provides confidence and direction. Follow these steps to set your goals:
- Break it down: Divide your retirement savings goal into short- and long-term milestones. For example, consider gradually increasing your superannuation contributions over five years and reassess as retirement approaches.
- Work backward: Calculate how much you need to save each year based on your desired retirement age. This helps you stay on track and adjust your retirement plan as needed.
- Adapt to changes: Life events like a job change, marriage, or an inheritance are opportunities to review and adjust your savings plan.
Setting realistic, flexible goals is key to building a retirement savings strategy that works for you.
Strategies to boost retirement savings
If you’re looking to increase your retirement savings, here are some strategies to consider:
Every little bit counts when saving for retirement. Speak with a financial adviser to explore tailored strategies, or use our Retire with Confidence tool to see how a comprehensive retirement plan can have a big impact.
Monitoring and adjusting your retirement plan
Retirement planning is an ongoing process, not a one-time task. Aim to review your savings progress at least once a year to stay on track and adjust as needed.
Life changes – such as market fluctuations, changes in employment, or unexpected expenses – might require adjustments to your plans. Staying flexible is essential to navigating these changes.
Consider consulting a financial adviser periodically. They can help you refine your plan to reflect market conditions, new regulations, or personal changes, ensuring you stay on track for a confident and comfortable retirement.
Calculating how much you need for retirement
While ASFA’s Retirement Standard provides helpful benchmarks, your personal retirement goal depends on factors like:
- Lifestyle and spending: Will you travel, dine out, or pursue hobbies in retirement?
- Part-time work: Do you plan to earn income after leaving full-time work?
- Home ownership and debts: Are you mortgage-free, or do you have debts to pay off?
- Superannuation vs. other investments: How much will you rely on super compared to other income sources?
- Healthcare costs: Have you considered potential medical expenses as you age?
There’s no one-size-fits-all answer to how much you need to retire. Your unique circumstances – like health, housing, and lifestyle goals - will shape your retirement goal.
Start planning early and review your savings strategy regularly. Use a retirement calculator or consult a financial adviser to create a tailored plan. With the right approach, you can retire confidently and enjoy peace of mind.
Ready to do more planning for your retirement? Use our Retire with Confidence tool to calculate how a comprehensive retirement plan can have a big impact.