Planning for retirement can feel overwhelming, especially when the definition of a “comfortable retirement” varies so widely from one person to the next. Some Australians dream of travelling the world, while others simply want a peaceful lifestyle close to family and friends.
So how do you turn your vision of retirement into a real, measurable savings goal?
Let’s break down the key factors that influence how much you’ll need to retire — using trusted Australian sources like MoneySmart and the Association of Superannuation Funds of Australia (ASFA) — and provide real-world examples to help you start planning with confidence.
What Will Retirement Look Like for You?
- Lifestyle Goals
Your desired lifestyle has the biggest impact on your retirement savings target. Consider the following questions:
- Do you plan to travel regularly (domestically or overseas)?
- Will you maintain private health cover?
- Do you want to dine out or enjoy hobbies that come with regular costs?
- Will you own your home outright?
Your answers will shape how much income you’ll need each year.
Life Expectancy
Australians are living longer than ever. If you retire at 65, you may need your savings to last 20–25 years or more.
| Gender | Expected Age at Death (from age 65) |
| Men | 84.6 years |
| Women | 87.3 years |
(Source: Australian Bureau of Statistics)
Planning for longevity is essential — and so is factoring in that retirement spending typically changes over time. Younger retirees (65–75) often spend more on travel and entertainment, while older retirees spend more on healthcare and support.
What’s Considered a “Comfortable” Retirement?
According to ASFA, a “comfortable” lifestyle in retirement includes:
- Private health insurance
- One or two short domestic holidays annually
- Eating out occasionally
- Good clothes
- A car replacement every 7–10 years
ASFA’s Comfortable Retirement Budget (2024 figures)
| Household Type | Annual Income Needed | Lump Sum Required at Retirement (Age 67) |
| Single | $51,630 | $595,000 |
| Couple | $72,663 | $690,000 |
Assumes home ownership and relatively good health.
What If Your Version of Comfortable Is Different?
Let’s say you currently earn a household income of $150,000 and want to maintain a similar standard of living in retirement.
According to MoneySmart, a general rule of thumb is to aim for 67% of your pre-retirement income. That means you’d need around $100,000 per year in retirement income.
Using Money Smart’s Retirement Planner, we estimated lump sums needed to achieve different levels of retirement income, assuming:
- Retirement age: 67
- Life expectancy: 87
- Investment return: 6.5% p.a.
- Aged Pension included where eligible
- Rounded to nearest $5,000
| Annual Retirement Income Target | Lump Sum Required (Couple) |
| $72,663 (ASFA “comfortable”) | $690,000 |
| $85,000 | $1,000,000 |
| $100,000 | $1,250,000 |
Superannuation
Your superannuation is the foundation of your retirement income. To maximise it:
- Consider increasing contributions through salary sacrifice or after-tax payments.
- Regularly review your investment options.
- Monitor fees and performance.
Don’t forget that nearly 50% of your final super balance is accumulated in the last 5–10 years before retirement due to compound interest — so it’s never too late to take action.
Investments & Assets
Beyond super, your other assets can support your lifestyle:
- Shares, ETFs, and managed funds
- Investment properties
- Term deposits and bonds
- Downsizing your home (accessing home equity)
These can provide income streams or be liquidated to fund big expenses.
The Age Pension
According to the Department of Social Services, 62% of Australians over age 67 receive some form of Age Pension.
The Age Pension can reduce the pressure on your savings but generally won’t fund a comfortable lifestyle alone.
Planning Ahead: What Can You Do Today?
No matter your current age or income, there are steps you can take now to secure a better retirement:
| Action | Why It Matters |
| Use the MoneySmart Retirement Planner | Estimate how much super you’ll need and if you’re on track |
| Increase voluntary super contributions | Even small amounts grow significantly over time |
| Seek advice from a financial adviser | Tailored strategies can improve outcomes and reduce tax |
| Consolidate super accounts | Avoid paying multiple sets of fees |
| Track your lifestyle goals | Knowing your vision helps you save with purpose |
Conclusion
There’s no one-size-fits-all answer to the question “How much money do I need to retire comfortably?” Your unique vision of retirement — whether it includes world travel or quiet mornings in your garden — determines your goal.
The key is to start early, make informed decisions, and check in regularly with your plan.
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The material on this page and on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this page and on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs.
Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this page and on this website are for illustrative purposes only.
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