Table of Contents
Why retirement planning matters
Retirement planning is about more than just saving money - it's about creating a clear plan to support the lifestyle you want. Whether you're fortunate enough to retire on your own terms or you need to work longer than expected, being prepared can help you retire with confidence.
How much income do you need in retirement?
The time you’ll spend in retirement and the lifestyle you’re planning both make a difference to the savings and income you’ll need. Being realistic and clear about your future plans can help you estimate the cost of your ideal retirement.
- Estimating income requirements
- Compare lifestyle standards
- Spending planners
Retirement Standard figures from The Association of Super Funds of Australia (ASFA) are a good starting point for estimating the income you might need. By comparing these estimates with your own spending plans, you’ll get a rough idea of how your overall spending in retirement could add up.
Comfortable lifestyle (p.a.) | Modest lifestyle (p.a.) | Age pension (p.a.) | |
|---|---|---|---|
| Couples aged around 65 | $73,875 | $48,184 | $45,037 |
| Single person aged around 65 | $52,383 | $33,386 | $29,874 |
Full Age Pension rate as at 20 March 2025, ASFA budgets as at March 2025 quarter.
You can read more on ASFA’s Retirement Standards in this article or visit ASFA’s website.
What is the retirement age in Australia?
There is no standard retirement age in Australia, however there are two important ages you should consider; your preservation age, when you can access your super, and your Age Pension age, when you may qualify for government support.
Start planning for retirement
Everybody has a different starting point in retirement. Whether you're fortunate enough to retire on your own terms, or if you have to retire earlier or later than expected, a key to retiring with confidence is knowledge.
Key steps for retirement planning
1. Assess your current retirement savings
Regularly review your superannuation and investment balances to check if you’re on track. Ensure your investment strategy aligns with your retirement timeline and risk tolerance. If unsure, seek advice from a financial adviser.
2. Set realistic retirement savings goals
Work out how much you need to save each year to meet your retirement income goals. Break your goals into short-term and long-term milestones and adjust after major life events like job changes or inheritance.
3. Boost your retirement savings
Consider maximising contributions to your superannuation, take advantage of employer contributions, and consider diversifying through investment funds or annuities. If you’re behind and eligible, consider using catch-up super contributions - extra payments allowed in your superannuation in the years before retirement.
4. Monitor and adjust your retirement plan
Review your progress at least annually to help you stay focused on your goals. Consider adjusting your plan if your financial situation changes, and consult a financial adviser to help ensure your retirement plan keeps pace with market conditions.
Calculate how long your savings could last
Use this tool to estimate how long your retirement income could last, the amount of Age Pension you may be eligible for and the impact of adding an inflation-linked lifetime income stream to your retirement portfolio.
FAQs about retirement planning
Additional reading
Age Pension eligibility
Longevity risk
