How much super do I need to retire in Australia?
It’s the number one question members ask – how much money will I need when I retire? There’s a number of things to think about - and it’s different for everyone – but we’re here to support you to figure out how much super, and other retirement income, you should be aiming for. These handy tools and benchmarks can help you determine where you’re at, and what you’ll need to do to reach your goals in retirement so that you can thrive on your own terms.
How much super will I need to retire?
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 | $51,278.30 a year | $32,665.66 a year | $29,023.80 a year |
| Couple | $72,148.19 a year | $46,994.28 a year | $21,876.40 (each) a year |
Annual budgets for households and living standards for those aged 65-84 (December quarter 2023)
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 | Upper-tier private health insurance. Specialist visits. | Basic private health insurance, with limited gap payments. | No private health insurance. |
| Technology | Fast, reliable internet. Streaming services. | Basic mobile, computer data usage. | Very basic internet and mobile capability. |
| Transport | Own a good car, with car insurance, and can afford maintenance costs. | Own a cheaper, older car. | Limited budget to own and maintain a car. |
| Lifestyle | Regular leisure activities, including clubs, gym, dance, and movies. | Irregular leisure activities. | Very few leisure activities. Infrequent trips to the cinema. |
| Home | 20 years’ worth of repairs, updates, and maintenance to your home. | Smaller budget for home maintenance. | Could be difficult to afford vital repairs. |
| Haircuts | Frequent, good quality haircuts. | Low-budget haircuts. | Fewer haircuts, or cutting own hair. |
| Home cooling and heating | Regular use of air conditioning. | Might have to keep a close eye on heating and cooling costs. | Limited budget for heating and cooling. |
| Eating out | Restaurant visits, take-away coffees, home-delivery. | Less restaurant visits, take-away coffees, and home-delivery. | Infrequently dining out, and cheaper take-away. |
Annual budgets for households and living standards for those aged 65-84 (March quarter 2023)
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.
If you’re not sure whether your current super savings can support your retirement goals, we can help you to understand where you stand.
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 1 July 2023, the maximum age pension is:
- $1116.30 per fortnight for singles ($29,023.80 a year)
- $841.40 each per fortnight for couples ($21,876.40 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? (You can use the retirement calculator below to help you understand).
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.
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 11% of your ordinary-time earnings into your nominated super fund. These contributions are called Superannuation Guarantee (SG) contributions. However, there are a few 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.
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.