If you need help determining how much to retire in Australia, you're in the right place.
Here’s the short answer upfront: according to the Association of Superannuation Funds of Australia (ASFA), to retire comfortably, an individual generally needs $595,000 in superannuation and a couple needs around $690,000. For a modest retirement, the required balances are much lower, around $100,000 for singles.
Of course, the exact number depends on your lifestyle, location, healthcare needs, and access to government support like the Age Pension. That's why we created a guide- to walk you through the key considerations so you can plan with confidence.
How Much Do I Need to Retire Comfortably in Australia?
To retire comfortably in Australia, an individual will generally need a superannuation balance of $595,000. A couple will need a little more— around $690,000. These figures are based on the Association of Superannuation Funds of Australia (ASFA) retirement standard, assuming a comfortable lifestyle and taking into account the Age Pension.
But that number doesn't always apply to everyone. Your retirement income might look very different from the general average. To determine what your target retirement fund should, you need to put a few things into consideration.
Some of the most important considerations are:
- Expected Expenses – living costs such as housing, food and utility expenses, healthcare, and leisure (e.g., travel, hobbies).
- Sources of Income – superannuation, Age Pension, investments, or business income.
- Life Expectancy – factor in family health history and longer lifespans. Calculating how much money you need also depends on how long you expect to be retired and whether you want to maintain your pre-retirement lifestyle (generally around 67% of pre-retirement income).
- Inflation – retirement costs rise over time; allow for at least 2–3% annual inflation.
- Tax Implications – consider strategies for tax efficiency; financial advice can help.
- Estate Planning – include any legacy or inheritance goals.
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According to the most recent ASFA retirement standard, these are the budgets that you will need to retire "comfortably" or "modestly." Check out the full guide here.
Tip: Regional Differences Matter – Retirement costs can vary between major cities (Sydney/Melbourne) and regional towns. A couple retiring in Sydney may face significantly higher housing and healthcare costs compared to regional Queensland.
What Does it Mean to Have a 'Comfortable Retirement' or a 'Modest Retirement' in Australia?
In Australia, when people talk about modest and comfortable retirement, they're describing two different lifestyles after you stop working.
Modest Retirement
Modest retirement means you can afford the basics — food, clothing, housing, and some activities — but you need to be careful with your money, as any extra cost might strain your budget.
ASFA estimates this lifestyle is better than living solely on the Age Pension, but does not allow for luxuries.
- Lifestyle: Covers basic necessities and activities such as housing, food, utility expenses, and even costs like public transport. It reflects a modest lifestyle that may not include many leisure or recreational options. That would be around $48,184 for couples and $33,386 for a single person (per annum) aged 65 to 84 years old.
- Superannuation Balance: Around $100,000 in superannuation savings for a single person.
Comfortable Retirement
Comfortable retirement means you can live more easily and enjoy extras like eating out, traveling in Australia and overseas, buying a nice car, upgrading your home, or doing hobbies you love. You're not rich, but you don't have to stress about money for the things you enjoy.
ASFA defines this lifestyle as one that provides a good standard of living with flexibility for activities and leisure.
- Lifestyle: Enables retirees to enjoy a broader range of leisure and recreational activities, purchase household goods, private health insurance, and travel. That would be around $73,875 for couples and $52,383 for a single person (per annum) aged 65 to 84 years old.
- Superannuation Balance: Around $595,000 for a single person and $690,000 for a couple.
Keep in mind: “comfortable” and “modest” retirement will look different for each person. Your recreational activities, debts, or whether you rent vs. own a home all affect living costs.
Source: The Association of Superannuation Funds of Australia (ASFA) Retirement Standard . March 2025
When Do I Need to Retire?
There’s no set retirement age in Australia—it depends on your finances, personal circumstances, and lifestyle goals.
- The preservation age determines when you can access super (currently between 55–60, depending on birth year).
- The Age Pension age is 67.
- Your decision should also factor in your spouse’s plans, health, and whether part-time work is an option.
While Medicare covers many essentials, private health cover and out-of-pocket medical expenses can add up significantly in retirement. Include these in your planning.
In most cases, it might be best to try and delay retirement as much as possible. This can help in two ways: it gives you more time to save and can allow you to pay off debts before fully retiring. Many Australians still carry a mortgage or other debts into retirement, so planning for debt reduction is key.
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Do You Need Help Preparing For Retirement?
Access to professional financial advice is becoming more challenging. CPA Australia reports that the number of registered financial advisers in Australia has nearly halved—from around 26,500 in 2019 to approximately 15,300 in July 2025. This decline, combined with increasing regulation, may limit available support for many retirees seeking tailored advice.
We get that retirement calculation might not always be the simplest process for everyone. That's why we at Northeast Wealth are always ready to provide the insight and guidance needed to help you plan for your financial future, if that be in the short term or the long term.
We work hard to help you set your financial goals and create a plan to achieve them. When you work with us, we will help you with your retirement planning and wealth management, and feel confident that you have the right plan for your unique retirement plans.
To get started, feel free to contact us today.
7 Steps to Retirement Planning in Australia
If you'd like to start your retirement planning journey, these are the first seven steps you will need to take today.
1. Create a retirement goal.
Start by identifying your personal objectives for retirement. Reflect on the lifestyle you envision, from a comfortable retirement close to home or one filled with extensive travel and leisure activities.
2. Decide when on a retirement age.
Determine your preferred retirement age, which significantly impacts your retirement savings timeline and the required savings amount you might require.
3. Plan your retirement spending.
Carefully determine your post-retirement budget, including essential expenses such as housing, healthcare, and daily living costs, while also considering funds for leisure and recreational activities.
4. Calculate how much money you'll need in retirement.
Using your completed retirement budget, determine the likely funds you will need to meet these costs from now until life expectancy. Use budget and tools like retirement calculators to see if there’s a gap between what you’ll likely have and what you’ll need. Some calculators also show how long your super might last based on spending and withdrawal rates.
You can also check out and use our budget planner to help you create a healthy and practical budget.
5. Project income you expect to receive after you retire.
As you get ready for retirement, think about your current income and your current lifestyle. Both will influence how much you need in the future.
Include super, Age Pension, part-time work, and investments when calculating your post-retirement income. If you plan to retire early (e.g., at 60), note that a single person may need about $515,000 in super, while a couple may need around $660,000 to sustain a comfortable lifestyle.
6. Pick an investment account for retirement savings.
You have a host of investment vehicles available, such as superannuation funds, self-managed super funds (SMSF), investment bonds, or retirement accounts is vital. Any selected investment should align with your risk tolerance and financial objectives while considering potential investment returns.
7. Start saving for retirement.
Initiating your retirement savings early is crucial. Regular contributions, coupled with prudent management of personal savings, can substantially enhance your retirement fund.
Frequently Asked Questions (FAQs)
How much do you need to retire comfortably in Australia?
The ASFA Retirement Standard outlines that a comfortable retirement requires $690,000 in superannuation for a couple and $575,000 for a single individual. To determine your own retirement needs, consider using a retirement calculator or speaking with a financial adviser.
Does the age pension make a difference in the amount I need?
Other government benefits like the full Age Pension can significantly impact the amount you need for retirement. They provide essential financial support and reduce the overall savings requirement to maintain a comfortable lifestyle during retirement.
It's important to understand your likely eligibility and entitlement to Age Pension when you are undertaking your retirement planning and when you plan to start taking out pension payments.
Who is eligible for the Age Pension?
To be determine age pension eligibility, you generally must meet several requirements:
- You must be Age Pension age, which is 67 years or older.
- You need to meet specific residence rules.
- You must satisfy an income test.
- You must satisfy an assets test.
There is a special condition where you may be able to claim the Age Pension without being assessed against the income and assets tests if you are legally blind and not claiming Rent Assistance. In this case, you would need to provide an ophthalmologist report to support your claim.
However, you may not be eligible if you receive certain payments from the Department of Veterans' Affairs (DVA).
If you are Age Pension age but do not meet all the rules for the Age Pension, you might be eligible for a Commonwealth Seniors Health Card, which can provide access to cheaper medicines and other concessions.
The income test and assets test are used to help determine eligibility and can affect the amount of Age Pension you receive.
Visit the Services Australia website for more information. Click here to visit now.
How much super should you have as a couple?
Before you access your super, couples should see if they have enough. The amount of superannuation needed for a comfortable retirement could vary depending on a number of factors, such as lifestyle and location.
According to ASFA, a couple should strive for a superannuation balance $690,000 when they reach pension age to enjoy a comfortable retirement. For a modest retirement, you'll need a balance of $100,000.
Remember that each person has distinct needs and that this is only a broad guideline. Take into account your specific situation and speak with a financial specialist.
How much super should you have at 40 years old?
The ASFA Super Guru website states that, in order to be on track for a decent retirement at age 40, those born in 1984 need to have $156,000 in super.
In Australia, the average super balance as of June 2021 was $139,431 for male workers between the ages of 40 and 44 and $107,538 for female workers.
Have you started having dreams regarding your post-work plans? Financial objectives that are doable can be advantageous. If your super doesn't fit with those goals, it's also important to think about the kinds of financial advice you can get from an advisor.
Your membership includes full access to personal financial advice about your accounts with us.
Can I retire at 60 with $500k in Australia?
Retiring at 60 with $500,000 in Australia can be feasible, but it largely depends on your lifestyle expectations and other sources of income, such as the government Age Pension. Calculations considering your desired lifestyle, expenses, and potential income are crucial for a realistic retirement plan, and running different scenarios can help you prepare for both modest and comfortable outcomes.
Can a couple retire on $2 million in Australia?
A couple with $2 million in Australia can likely retire comfortably, provided they manage their finances wisely.
This substantial nest egg can support a comfortable retirement lifestyle, covering living expenses and potentially allowing for some luxuries. Careful financial planning and investment decisions are key to making the most of these savings.
What are pre-retirement income investment options?
Pre-retirement income investment options are financial tools and strategies designed to help individuals secure a modest or comfortable lifestyle in retirement. Here are five pre-retirement income investment options in Australia:
- Superannuation — Boost additional contributions to your super for tax benefits and steady retirement income.
- Annuities — Invest a lump sum for guaranteed income over time.
- Term Deposits — Low-risk, fixed-interest investments with secure returns.
- Managed Funds — Diversify investments for regular income and potential growth.
- Dividend Stocks — Invest in high-dividend stocks for consistent income and growth potential
What is the usual life expectancy for retirement?
The length of your retirement depends on many things, like your age group, how healthy you are, your lifestyle choices, and even your family history. In Australia, on average, guys usually enjoy their retirement until about 83, while ladies often have a few more years, typically around 85.
What is TTR (Transition to Retirement Pension)?
TTR stands for a Transition to Retirement pension. It is described as an account-based pension that provides regular payments from your super . You may be able to access a TTR if you have reached your preservation age and are under 65.
However, there are limitations on how much you can withdraw with a TTR; you can only withdraw between 4–10% of your super savings every financial year.
Accessing a TTR could potentially offer several benefits:
- Reduce your working hours or increase your before-tax (salary sacrifice) contributions to super, using the regular income stream payments to supplement the pay you might miss out on.
- Reduce tax if you are under 60, and the income stream payments are tax free if you are 60 or older.
- Keep your super balance invested while accessing some of your savings.
If you are considering whether a transition to retirement strategy is the right approach for you, the sources recommend reading the Product Disclosure Statement or speaking to a financial advisor . For more information about the transition to retirement strategy, check out this article.
What is the Association of Superannuation Funds?
The Association of Superannuation Funds of Australia (ASFA) is a prominent industry organisation that provides valuable insights and guidance on super savings. It plays a vital role in shaping superannuation policies and promoting the interests of supersavers by offering information on retirement planning, investment strategies, pre-tax contributions, and government regulations.
Is there Government Assistance for Retirees in Australia?
Yes! In Australia, the government assistance available for retirees is in the form of payments under the Age Pension.
Here are some pointers on the Age Pension.
- Eligibility starts at 67 years for most Australians.
- Residency requirement: at least 10 years.
- Around 2.6 million Australians over 65 receive a full or partial Age Pension.
- The amount received depends on assets, superannuation, and income. Depending on your circumstances, you may qualify for a full pension, part pension, or no pension at all.
- Concessions like the Commonwealth Seniors Health Card may apply if you don’t qualify for the pension.
Age and residency are two characteristics that affect eligibility. Calculating your benefits considers your annual income amount, assets, and marital status. This is done to guarantee that retirees can maintain a comfortable living standard.
Final Thoughts
Retirement is one of the largest achievements in life, and sound planning is the secret to living it worry-free. With knowledge of your projected costs, sources of income, and investment products, you can gain control over your future finances and retire securely.
Some people want retirement to mean slowing down and spending more time with family; for others it means travel, hobbies, or even starting something new. Both approaches can be fulfilling—what matters is matching your lifestyle vision with your savings and planning.
At Northeast Wealth, we specialise in guiding Australians through the twists and turns of retirement planning. If you're just starting or you want to refine your existing retirement strategy, we're here. Are you ready to build a clear and confident path to your future? Let's make it happen. Contact us today.
James O’Reilly is the Director of Northeast, a fast-growing financial advice firm that empowers clients to achieve meaningful financial progress and well-being. He's also the co-host of the Australian Retirement Podcast, one of Australia's fastest-growing podcasts.