A guide to income in retirement
This guide contains five key steps to building a comprehensive retirement income plan to provide you with a regular income for life.
How much do you need to retire comfortably in Australia?
It’s a question almost everyone asks when planning for life after work – and the answer isn’t one-size-fits-all.
Your retirement savings goal depends on factors like your lifestyle goals, essential living expenses, healthcare needs, and how long you expect to live. Planning ahead can make the difference between just covering your basic costs and enjoying the retirement you’ve always dreamed of.
To help you plan, the Association of Super Funds of Australia (ASFA) publishes quarterly ‘Retirement Standard' research. These benchmarks can give you a clear idea of the income you’ll need to match your lifestyle expectations in retirement.
How much do I need to save for retirement?
Retirement planning starts with knowing how much income you’ll need to support your desired lifestyle. The ASFA Retirement Standard provides benchmarks for two common lifestyles: modest and comfortable.
ASFA Retirement Standard for couples aged 65-84 | |
|---|---|
Modest | Comfortable |
| $48,184 a year | $73,875 a year |
ASFA Retirement Standard for a single person aged 65-84 | |
|---|---|
Modest | Comfortable |
| $33,386 a year | $52,383 a year |
i Association of Superannuation Funds of Australia (ASFA) - Retirement Standards, March quarter 2025
Factoring in inflation and longevity
Inflation and longevity are key considerations in retirement planning. Rising costs over time can reduce the purchasing power of your savings, making it harder to cover your expenses. Meanwhile with Australians living well into their 80s or 90sii, your retirement funds may need to last 20-30 years - or even longer.
Planning ahead is essential to protect your savings and maintain your lifestyle.
Explore our Guide to income in retirement to learn how to safeguard your savings and plan for a secure future.
“Australians are living well into their 80s or 90s, meaning your retirement funds may need to last 20-30 years—or even longer.”
ii Sources: ABS 2014a; ABS 2024; Table S9.1.
How much will I need to have saved by the time I retire?
ASFA also publishes the level of retirement savings it would take to fund a modest or comfortable lifestyle. It’s expected that a couple would need combined savings of $690,000 at the time they retire if they’re aiming to make ends meet for the ASFA definition of a comfortable lifestyle. A single person would need $595,000 in their super fund and other savings to achieve that same level of comfort. This assumes that the retiree/s will draw down all their capital and receive a part Age Pension.
A modest lifestyle, on the other hand, takes about $100,000 in savings, whether you’re single or in a couple. This is based on the assumption that the Age Pension and other Centrelink benefits will cover the majority of the costs laid out in the modest ASFA budget.
The lifestyle you’ll be budgeting for will be uniquely your own. Your ideal retirement and the things that make your life more comfortable could be quite different from the assumptions used to calculate the ASFA Retirement Standard. Although there is a significant difference between the annual living costs for a modest and comfortable retirement, chances are the budget that’s right for you is somewhere in between.