How Much Do I Need to Retire On?

One of the most common questions we hear from clients is ‘How much do I actually need to retire comfortably?’

It’s a fair question – but not always an easy one to answer.  After all, the right number depends heavily on your lifestyle, goals, and circumstances. But there is a useful benchmark that can help as a reference point: the ASFA Retirement Standard.

A General Benchmark for Retirement Costs

The Association of Superannuation Funds of Australia (ASFA) publishes a quarterly Retirement Standard that outlines how much retirees need to enjoy either a modest or comfortable lifestyle in retirement.

As of the latest update (March quarter 2025), here are the approximate annual spending figures for people aged 65-84 who own their home outright:

So, what’s the difference between modest and comfortable?

Source:  AFSA Retirement Standard

But What About Your Lifestyle?

While the ASFA numbers are helpful, they’re just a starting point.  The real question is: How much will your lifestyle cost in retirement?

Think about:

• How often you plan to travel
• The kind of car you want to drive
• Hobbies and recreational spending
• Health care needs
• Whether you want to leave a legacy for your future generations

Tracking your current spending habits and discussing your retirement goals with your adviser can help personalise your plan to ensure you are on the right track to be able to fund your retirement.

Superannuation and Beyond

Meeting a comfortable retirement standard typically requires a well-funded superannuation balance – but that’s not the only source of retirement income. Other potential sources might include:

• Other investment income (e.g., share dividends, rental property income, annuity payments)
• The Age Pension (if eligible)
• Downsizing the family home
• Part-time work or phased retirement

It’s all about building a pool of retirement funding assets to support your lifestyle across potentially 25–30+ years of retirement.

It’s Never Too Early (or Too Late) to Plan

Whether retirement is just around the corner or still a decade away, now is the time to start planning. Knowing what you want your retirement to look like – and what it will likely cost – is key to making informed financial decisions today.

If you’re unsure whether you’re on track, or how your current superannuation balance stacks up against your retirement aspirations, we’re here to help – simply contact our office to arrange a time to discuss further.