How much do I need to retire in Australia?
- Damon Tuthill
- Jul 22
- 3 min read
It is one of the most common questions we hear, and one of the most stressful. Many people assume the answer is millions of dollars, and that anything less means falling short.
The good news is that the research suggests otherwise. For most Australians, the number is smaller than they expect. The key is understanding what sits behind it.
Below is a simple explanation of the current benchmarks, what they assume, and how to start working out your own number.
How much super do you need to retire?
The most widely used benchmark in Australia is the Retirement Standard, published by the Association of Superannuation Funds of Australia (ASFA). It estimates how much retirees need based on the real spending patterns of Australian households, and it is updated every quarter to keep pace with the cost of living.
The March 2026 figures estimate that a comfortable retirement requires:
$630,000 for singles
$730,000 for couples
In annual terms, that translates to around $54,840 a year for a single person and $77,375 for a couple.
These figures are a record high, and the first increase in three years. Rising living costs, particularly electricity, health and travel, have pushed the benchmarks up.
What is a comfortable retirement in Australia?
ASFA defines two levels of retirement lifestyle.
A modest lifestyle covers the basics. It is largely funded by the Age Pension, which is why the lump sums needed are much smaller: around $110,000 for a single and $120,000 for a couple.
A comfortable lifestyle allows for more. It includes private health insurance, a reasonable car, household goods and regular holidays. This is the level most of our clients have in mind when they picture retirement.
The assumptions behind the ASFA retirement figures
This is the part many headlines leave out. The ASFA figures rest on some important assumptions:
You own your home outright, with no rent or mortgage to pay
A part Age Pension supplements your savings over time
You retire at age 67 and live to an average life expectancy of about 85
You are in reasonably good health when you retire
If your situation is different, your number will be too. If you will be renting, or still paying off a mortgage, you will need more. The same applies if you expect significant health costs.
Retiring early? Plan for the gap before the Age Pension
The Age Pension is not available until age 67. If you plan to retire earlier, your savings need to carry you on their own until then.
Retiring at 60, for example, means funding a seven-year gap entirely from your own resources. That is seven years of living costs before any pension support arrives, and seven fewer years of contributions going into your super.
This does not mean early retirement is out of reach. It simply means the gap needs its own plan.
How to work out how much you need to retire
The benchmarks are a useful starting point, not a finish line. Your number depends on:
The lifestyle you want, and what it costs each year
Whether you will own your home
How your super is tracking
Whether you can access a full or part Age Pension
How long your retirement is likely to last
A practical first step is to estimate your expected annual spending in retirement, then compare it to the income your super and other investments could generate. The difference between the two is what your plan needs to solve.
Key takeaway
A comfortable retirement may be more achievable than you think. The current benchmarks are $630,000 for singles and $730,000 for couples, assuming you own your home and receive a part Age Pension. But the benchmarks are averages. Your number depends on your lifestyle, your home, your health and when you plan to stop working.
How we can help
If you would like to know whether you are on track, we can help you work out your own retirement number and build a plan to reach it. A conversation now can turn a vague worry into a clear goal.
Ready for a financial check-in? Book a financial review
Sources
Aspire2 Wealth Advisers Pty Ltd ABN 42 125 897 903 is an authorised representative and credit representative of Charter Financial Planning Limited ABN 35 002 976 294, AFSL and Australian Credit Licence No. 234665. This website contains information that is general in nature. It does not take into account the objectives, financial situation, or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.
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