How much superannuation you need to retire in Australia depends on the lifestyle you want in retirement, whether you will qualify for the Age Pension, your health, and how long you will live. The most widely used benchmark is the ASFA Retirement Standard, which estimates the annual income needed for a comfortable or modest retirement.
ASFA Retirement Standard — 2026 (Approximate)
The Association of Superannuation Funds of Australia (ASFA) publishes quarterly estimates of the income needed for a modest and comfortable retirement.
| Lifestyle | Single | Couple |
|---|---|---|
| Comfortable retirement | ~$52,000/year | ~$73,000/year |
| Modest retirement | ~$33,000/year | ~$48,000/year |
Figures are updated quarterly by ASFA. The modest standard is slightly above the full Age Pension rate.
A “comfortable” retirement is defined as a standard of living enabling retirees to participate in a broad range of leisure activities, maintain a reasonable car, have good clothes, a range of electronic equipment, and occasional domestic and international travel.
How Much Super Do You Need to Fund These Lifestyles?
ASFA estimates the lump sum required at age 67 (assuming a part Age Pension and drawing down capital to zero at age 92):
| Lifestyle | Single | Couple |
|---|---|---|
| Comfortable | ~$595,000 | ~$690,000 |
| Modest | Significantly less — much of this can be funded by the Age Pension |
These figures assume you draw down the capital and receive the partial Age Pension. If you want to preserve capital (leave an estate), you need significantly more.
The Role of the Age Pension
Many Australians supplement super with the Age Pension. The full Age Pension (FY2025–26) is approximately:
- Single: ~$29,754/year (including supplements)
- Couple: ~$44,855/year combined
The more super and assets you have, the lower your Age Pension entitlement — the two phase out together through the assets test and income test. Strategic structuring of assets can influence Age Pension outcomes.
Super Balance Benchmarks by Age
Rather than focusing only on the retirement lump sum, tracking your progress against age-based benchmarks helps you assess whether you are on track:
| Age | Approximate benchmark (comfortable retirement target) |
|---|---|
| 30 | $50,000–$70,000 |
| 35 | $80,000–$110,000 |
| 40 | $130,000–$170,000 |
| 45 | $200,000–$250,000 |
| 50 | $270,000–$340,000 |
| 55 | $360,000–$450,000 |
| 60 | $470,000–$590,000 |
| 67 | $595,000+ (ASFA comfortable, single) |
These are rough benchmarks — actual amounts vary with income, contribution rates, investment returns, and time in workforce.
Factors That Affect How Much You Need
- Desired lifestyle: International travel, private health cover, and a newer car increase the required amount significantly
- Home ownership: Owning your home at retirement eliminates rent costs and is not counted in the Age Pension assets test (up to the value threshold)
- Health: Poor health increases medical costs; good health means a potentially longer retirement requiring more income
- Investment returns: Higher real returns in retirement mean each dollar of capital supports more income
- Spouse income: A couple can share fixed costs, reducing per-person income needs
- Inheritance: Whether leaving an estate matters to you affects how aggressively you draw down
What If You Are Behind?
If your super balance is tracking below benchmark:
- Make additional concessional contributions (salary sacrifice or personal deductible contributions) up to the $30,000 annual cap
- Use catch-up concessional contributions if you have unused cap amounts from the past 5 years
- Make non-concessional contributions if your total super balance is below $1.9 million
- Review your super fund’s investment option — a more growth-oriented option may deliver better long-term returns for younger accumulators
Related Articles
- Average Super Balance by Age Australia
- Concessional Contributions Australia
- Catch-Up Concessional Contributions Australia
- Retirement Planning Australia
- Retirement Investing hub
Frequently Asked Questions
Is $500,000 enough to retire in Australia? For many Australians who own their home, $500,000 in super combined with a part Age Pension can fund a comfortable retirement — particularly if lifestyle costs are modest. For renters or those with higher lifestyle aspirations, more may be required.
Can I retire on the Age Pension alone? The full Age Pension provides a modest but adequate income for homeowners with low expenses. Renting retirees on the Age Pension face significant financial pressure, as rent assistance from Centrelink does not cover most private rental costs. The Age Pension is designed as a safety net, not a comfortable retirement income.
What is the average Australian’s super balance at retirement? The average Australian retires with significantly less than the ASFA comfortable retirement benchmark — particularly women, who often have lower super balances due to career breaks. See Average Super Balance by Age Australia for current data.
This article provides general financial information only. Retirement needs vary significantly between individuals. For advice tailored to your situation, speak with a licensed financial adviser through the ASIC financial advisers register or MoneySmart.