How much super you need to retire depends on what kind of retirement you want, how long you live, and what other income sources you have — including the Age Pension. There is no single correct number, but the ASFA Retirement Standard provides widely-used benchmarks for “comfortable” and “modest” retirement lifestyles in Australia.
Key Takeaways
- ASFA benchmarks a ‘comfortable’ retirement at approximately $52,000/year (single) or $73,000/year (couple)
- To fund a comfortable retirement over 25 years at 4% drawdown, you would need approximately $1.3M–$1.7M in super
- Most retirees will receive some Age Pension — which significantly reduces the super balance needed to retire comfortably
- All withdrawals from a taxed fund at age 60+ are completely tax-free
- The transfer balance cap ($2.0M in FY2025–26) limits how much you can hold in tax-free pension phase
ASFA Retirement Standard — What the Benchmarks Say
The Association of Superannuation Funds of Australia (ASFA) publishes quarterly estimates of what retirement costs, based on a detailed budget of goods and services. The figures below are approximate and are updated quarterly by ASFA.
Annual expenditure benchmarks (approximate, based on recent ASFA data):
| Retirement Style | Single | Couple |
|---|---|---|
| Comfortable | ~$52,000/year | ~$73,000/year |
| Modest | ~$33,000/year | ~$48,000/year |
Source: ASFA Retirement Standard. Updated quarterly — see ASFA’s website for current figures.
What “comfortable” includes:
- Private health insurance
- Regular domestic holidays and occasional overseas travel
- A reasonable car
- Dining out and regular leisure activities
- Maintaining a home and major appliances
What “modest” includes:
- Only basic private health insurance
- Infrequent travel and limited leisure
- An older or second-hand car
- Few luxuries; primarily domestic activities
Both benchmarks assume the retiree owns their home outright. If you are renting in retirement, your living costs will be significantly higher.
How Much Super Is Needed to Fund These Lifestyles?
ASFA also estimates the superannuation balance at age 67 needed to fund each lifestyle, assuming:
- Drawing down the super over a standard life expectancy
- A long-term investment return of approximately 6–7% per annum
- Receiving a part Age Pension as super depletes over time (for the comfortable benchmark, partial Age Pension is assumed after some years)
- Owning a home outright
| Retirement Style | Super Balance Needed at Age 67 (approx.) |
|---|---|
| Comfortable — Single | ~$595,000 |
| Comfortable — Couple | ~$690,000 (combined) |
| Modest — Single | Significantly supplemented by Age Pension |
| Modest — Couple | Significantly supplemented by Age Pension |
These are ASFA estimates — actual figures vary with investment returns, life expectancy, and spending patterns.
The “comfortable” benchmarks assume partial Age Pension in later years as the super balance depletes. For the “modest” benchmark, most income comes from the full Age Pension, with super providing a supplement in early retirement.
The Role of the Age Pension
The Age Pension is a significant component of many Australians’ retirement income:
- The full Age Pension for a single person is approximately $28,000–$29,000 per year (including all supplements, updated regularly — check Services Australia for current rates)
- For a couple, it is approximately $42,000–$44,000/year combined
- The Age Pension is available from age 67 (for both men and women born after 1 January 1957)
For a couple aiming for the ASFA comfortable standard (~$73,000/year), the full Age Pension (~$44,000/year) covers a substantial portion. The super needs to fund only the gap — reducing the required balance significantly compared to having no Age Pension at all.
The interaction: As your super depletes with age, your Age Pension entitlement typically increases (because your assets have fallen below the thresholds). The two sources of income work together in many retirement plans.
Factors That Affect How Much You Need
Home ownership: The ASFA benchmarks assume home ownership. Renting adds substantially to retirement costs — typically $20,000–$30,000+ per year in major cities. If you rent in retirement, you need either a significantly larger super balance or access to Commonwealth Rent Assistance (if on the Age Pension).
Health: Private health insurance costs, out-of-pocket medical expenses, and aged care costs can significantly affect retirement spending, particularly in the later years. The ASFA benchmarks include private health insurance but may underestimate high-need medical scenarios.
Location: Cost of living varies substantially across Australia. Retiring in regional Queensland costs significantly less than staying in Sydney or Melbourne.
Lifestyle preferences: The ASFA comfortable benchmark is considered a mid-range lifestyle — it does not include business-class travel, a boat, or premium aged care. High lifestyle expectations require a larger balance.
Longevity: A person who retires at 67 and lives to 95 has 28 years of retirement to fund. The same balance needs to last a third longer than if they live to 85.
A Quick Reference by Super Balance
| Super Balance at 67 | Likely Retirement Outcome |
|---|---|
| Under $100,000 | Primarily reliant on Age Pension; modest supplement only |
| $200,000 – $400,000 | Comfortable with Age Pension + modest drawdown for first decade |
| $500,000 – $700,000 | ASFA comfortable range; declining reliance on Age Pension over time |
| $700,000 – $1,500,000 | Comfortable to very comfortable; partial Age Pension likely later |
| $1.5M – $2.0M | Self-funded; minimal or no Age Pension likely |
| Over $2.0M (transfer balance cap) | Fully self-funded; subject to Division 296 tax above $3M |
Frequently Asked Questions
What if I’m 50 and only have $200,000 in super — can I still have a comfortable retirement? Potentially — it depends on how much you can contribute over the next 17 years. At 12% SG on an average salary of $90,000, you’d add around $100,000 in employer contributions alone over that period (before returns). Adding salary sacrifice and catch-up contributions can significantly boost the balance. Running a projection with a financial planner or super fund calculator gives a more accurate picture.
Do I include my partner’s super in the calculation? Yes — the ASFA couple benchmarks assume both members’ super is considered collectively. For planning purposes, you assess the household’s combined retirement resources: total super, property equity, investment assets, and Age Pension entitlement.
The comfortable benchmark seems low — what about the rising cost of living? The ASFA Retirement Standard is updated quarterly to reflect CPI changes. However, some analysts consider the benchmarks conservative for capital city retirees or those with higher lifestyle expectations. If your retirement lifestyle goals exceed the ASFA comfortable benchmark, your required balance will be higher. Building a personalised retirement budget is more useful than relying entirely on generic benchmarks.
See also: Retirement Income. For advice tailored to your retirement planning situation, speak with a licensed financial adviser. You can find one through the ASIC financial advisers register or MoneySmart.