How much do I need to retire in Australia?
Updated: Oct 10
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 latest benchmarks, what has changed, what they assume and how to start working out your own number.
In this article
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 latest figures, for the June quarter 2026, estimate that a comfortable retirement for homeowners retiring at 67 requires:
$630,000 for singles
$730,000 for couples
In annual terms, that is $56,166 a year for a single person and $78,998 for a couple.
What has changed
The cost of retirement is still creeping up, even though the super balances ASFA recommends have stayed the same.
Annual budgets for retirees aged 65 to 84 who own their home
Lifestyle | March quarter 2026 | June quarter 2026 | Change |
Comfortable, single | $55,923 | $56,166 | up $243 |
Comfortable, couple | $78,566 | $78,998 | up $432 |
Modest, single | $36,434 | $36,548 | up $114 |
Modest, couple | $52,473 | $52,690 | up $217 |
Over the past six months, the rise is larger. Since the figures ASFA published in February, a comfortable retirement now costs a single person $1,326 more a year and a couple $1,623 more.
The super balances needed have not moved since February, when ASFA lifted them for the first time in three years:
Comfortable: $630,000 for singles (up from $595,000) and $730,000 for couples (up from $690,000)
Modest: $110,000 for singles and $120,000 for couples (up from $100,000 for both)
ASFA does not update these lump sums every quarter, because they already allow for future increases to the Age Pension.
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.
A comfortable lifestyle allows for more. It includes private health insurance, a reasonable car, regular leisure activities, a domestic trip each year and an overseas trip every seven years. This is the level most of our clients have in mind when they picture retirement.
For a couple, the biggest weekly costs in a comfortable retirement are leisure (about $344), groceries (about $269), health (about $235) and running a car (about $204).
How far does the Age Pension go?
The full Age Pension, including supplements, pays $32,180 a year for a single person and $48,516 for a couple (rates from 20 September 2026). That leaves a gap of around $24,000 a year for singles and $30,500 for couples to reach a comfortable lifestyle. Your super and other savings need to fill that gap.
Renting in retirement
Renters need considerably more. A modest lifestyle for a retiree who rents privately costs $51,418 a year for a single person and $69,376 for a couple. The super needed at 67 is $340,000 for a single and $385,000 for a couple, even at the modest level. ASFA does not publish a comfortable budget for renters.
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 (unless noted)
A part Age Pension supplements your savings over time
You draw down all your savings over retirement
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 still be paying off a mortgage, or expect significant health costs, you will need more.
Retiring early? Plan for the gap before the Age Pension
The Age Pension is not available until age 67, and most people cannot access their super until 60. If you plan to stop work earlier, you will need savings or investments outside super to carry you through.
Retiring at 55, for example, means funding at least five years before you can touch your super and twelve before any pension support arrives.
This does not mean early retirement is out of reach. For many people, it is less about a date and more about having the choice not to work. The earlier you plan for it, the more options you have.
Start with the life you want, not a number
The benchmarks are a useful starting point, not a finish line. A better first question is: what do you want your money to allow you to do? More travel, fewer working hours, helping family or being mortgage-free will each lead to a different number.
Your number also 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 with 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 now costs $56,166 a year for a single person and $78,998 for a couple, and those costs are still rising. The super needed to fund it remains $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.
