How Much Do I Need to Retire in Australia? 2026 Retirement Savings Targets
Calculate how much money you need to retire comfortably in Australia. Covers ASFA retirement standards, Age Pension eligibility, super targets by age, and closing the gap.
The ASFA Retirement Standard: how much income you need per year
The Association of Superannuation Funds of Australia (ASFA) publishes quarterly retirement income benchmarks that are widely used across the financial planning industry. The ASFA Retirement Standard defines two lifestyle levels — modest and comfortable — for both singles and couples. A modest retirement covers basic living expenses but leaves little room for extras — think affordable car, basic health insurance, occasional local holidays, and limited leisure activities. The annual budget for a modest retirement is approximately $32,000 to $33,000 for a single and $46,000 to $47,000 for a couple (March 2026 quarter). A comfortable retirement allows for a good standard of living — regular dining out, domestic and occasional international travel, a reasonable car, private health insurance, and leisure activities. The annual budget is approximately $52,000 to $53,000 for a single and $74,000 to $76,000 for a couple. These figures assume the retiree owns their home outright. If you are still paying a mortgage or renting in retirement, you need to add your annual housing cost on top of these benchmarks — which can increase the required income by $15,000 to $30,000 per year. The gap between a modest and comfortable retirement is roughly $20,000 per year for singles and $28,000 per year for couples. Over a 25-year retirement, that gap equates to $500,000 to $700,000 in total spending. This makes it clear why building adequate super is so critical. Use our Money Check tool to see where your current trajectory places you on this spectrum.
How much super do you need at retirement?
To convert annual retirement income targets into lump-sum savings targets, you need to account for investment returns during retirement, the Age Pension (which provides a partial safety net), and how long your retirement might last. ASFA estimates that to fund a comfortable retirement starting at age 67, a single person needs approximately $595,000 in super and a couple needs approximately $690,000 combined. These figures assume the retiree also qualifies for a partial Age Pension to supplement their super income. If you want to self-fund entirely without relying on the Age Pension, the targets are significantly higher — approximately $800,000 to $1,000,000 for a single and $1,000,000 to $1,200,000 for a couple. These targets assume: retirement at age 67, life expectancy of 87 for men and 90 for women (average), owning your home outright, drawing down super at a sustainable rate (typically 4% to 5% of the balance in the early years), and achieving investment returns of 6% to 7% per year during retirement (a balanced investment mix). If you plan to retire earlier than 67, your target increases substantially — each year of early retirement adds roughly $50,000 to $75,000 to the required balance. If you expect to live longer than average (family history of longevity), add a further buffer. Use our Retirement Calculator to model your specific scenario based on your desired retirement age, income target, and expected super balance.
Super balance benchmarks by age: are you on track?
Knowing your target at retirement is useful, but tracking your progress at each age is essential for staying on course — or catching up if you are behind. Here are approximate super balance benchmarks by age for a single person targeting a comfortable retirement at 67, assuming standard employer contributions on median income and average investment returns. Age 25: $20,000 to $30,000. If you have been working since 18 to 20, your super should be building from employer contributions even if you have not made any voluntary contributions. Age 30: $40,000 to $60,000. By now, compounding is starting to have a noticeable effect on your balance growth year-on-year. Age 35: $80,000 to $120,000. This is often a wake-up call — if your balance is significantly below $80,000, consider consolidating multiple accounts, making voluntary contributions, and checking that your employer has been paying correctly. Age 40: $130,000 to $200,000. Super should now be a significant asset. Review your investment option — if you are still in a default balanced fund, a growth option may deliver better returns over the remaining 27 years. Age 45: $200,000 to $300,000. The halfway point. Catch-up contributions become increasingly important if you are below target. Age 50: $300,000 to $420,000. Super is likely your largest single financial asset outside of property. Age 55: $400,000 to $550,000. Final decade to make meaningful contributions before retirement. Consider maximising the $30,000 annual concessional cap. Age 60: $480,000 to $650,000. Close to the finish line. Review your investment mix — gradually shifting toward balanced or conservative may be appropriate. If your super balance is below these benchmarks, our Money Check tool will help identify the gap and recommend strategies to close it.
The Age Pension: your retirement safety net
The Age Pension is a government income support payment that provides a baseline retirement income for eligible Australians. It is not designed to fund a comfortable retirement on its own, but it plays a critical role in supplementing super income for many retirees. The maximum Age Pension rates as of March 2026 are approximately $1,116 per fortnight for singles ($29,000 per year) and $1,682 per fortnight for couples combined ($43,700 per year). These rates are indexed twice yearly to wages and prices. Eligibility is based on age (currently 67), residency (at least 10 years in Australia, with at least 5 years continuous), and means testing against both income and assets. The income test reduces the pension by 50 cents for every dollar of assessable income above $204 per fortnight for singles or $360 per fortnight for couples. The assets test has a lower threshold of approximately $301,750 for a homeowner single and $451,500 for a homeowner couple. The family home is exempt from the assets test regardless of value. Super in accumulation phase counts as an asset, and once you start an account-based pension from your super, the income stream is assessed under the income test. Importantly, you do not need to be completely broke to receive the Age Pension — many retirees with super balances of $300,000 to $500,000 receive a partial pension that supplements their super income. This hybrid approach (super plus part pension) is how the majority of Australian retirees fund their living costs. Check your potential Age Pension eligibility and estimate your payment at BenefitsMate.
Strategies to close the retirement savings gap
If you have calculated your retirement target and realised there is a gap, do not panic — there are proven strategies to close it. Salary sacrifice additional contributions into super. As outlined earlier, contributions are taxed at just 15% instead of your marginal rate, making this the most tax-effective way to build retirement wealth. Even an extra $100 per week from age 40 to 67 can add over $200,000 to your super balance (assuming 8% returns). Consolidate multiple super accounts. Many Australians have two, three, or more super accounts from different jobs, each charging administration fees and insurance premiums. Consolidating into a single low-fee fund can save thousands in fees over your working life and simplify your finances. Check for lost super through myGov — the ATO holds billions in unclaimed super. Review your super investment option. If you are under 50 and in a conservative or balanced option, switching to a growth option could add tens of thousands to your final balance through higher expected returns. The additional volatility is manageable when you have 15 or more years until retirement. Delay retirement by even one or two years. Each additional year of work adds to your super through employer contributions, gives your balance an extra year of investment returns, and reduces the number of retirement years your savings must fund. Working to 69 instead of 67 might add $80,000 to $120,000 to your effective retirement savings. Consider downsizing contributions — if you are over 55 and sell your family home, you can contribute up to $300,000 (or $600,000 per couple) from the proceeds into super under the downsizer contribution scheme, regardless of your super balance or total super cap. Use our Retirement Calculator to model different catch-up scenarios.
Planning your retirement income streams
A comfortable retirement is not just about having a large enough lump sum — it is about converting that lump sum into sustainable income streams that last as long as you do. The most common approach is an account-based pension (also called an allocated pension), where your super transitions from accumulation phase to pension phase. In pension phase, investment earnings are tax-free (up to the transfer balance cap of $1.9 million), and your regular pension payments are tax-free if you are over 60. The amount you draw each year is flexible, subject to minimum drawdown rates set by the government (4% at age under 65, increasing to 14% at age 95-plus). A sustainable drawdown rate is typically 4% to 5% of the balance in the early years of retirement. On a $600,000 super balance, a 4.5% drawdown provides approximately $27,000 per year, which combined with a partial Age Pension of $15,000 to $20,000 gives a total income of $42,000 to $47,000 — enough for a modest-to-comfortable single retirement. Other income sources can supplement super and the pension: rental income from investment property, dividends from share portfolios held outside super, part-time work (increasingly common in the early years of retirement), annuities that provide guaranteed income for life, and government concession cards that reduce the cost of healthcare, transport, utilities, and council rates. Start planning your retirement income at least five years before your intended retirement date. Use our Money Check tool for an immediate assessment of your retirement readiness, our Retirement Calculator for detailed projections, and our Superannuation Calculator to optimise your contributions in the years remaining. Check your potential government benefit entitlements at BenefitsMate, and if you are still working, ensure your employment conditions are correct at FairWork Mate.
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General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.
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