Build your retirement budget line by line: housing, utilities, food, car, health, insurance, entertainment and travel. Detailed explanations for each category — then see your indicative annual and monthly income target.
As MoneySmart suggests, once you know how you intend to live, work out your living costs by category: home and utilities, insurances, groceries, personal and medical, entertainment and eating out, transport and auto, and any support for children or grandchildren. A line-by-line budget forces you to think about what you'll actually spend and gives a clearer target to fund from super and Age Pension.
Many people retire still owing money on their mortgage or other debts (e.g. car). If you'll have debt in retirement, add the repayments to your budget in the housing or "other debt" section. You may also consider paying off debt using super or other savings (e.g. downsizing) — but check the tax impact and effect on Age Pension (e.g. paying off a mortgage can reduce assessable assets and improve pension eligibility). See MoneySmart: debt in retirement and consider financial advice.
If you'll be renting, rent is a major ongoing cost. Allow for increases over time and factor it into your annual housing cost. Check whether you're eligible for Rent Assistance from Services Australia if you receive Age Pension or other eligible payments.
Besides ongoing income needs, many retirees have one-off or occasional capital expenses in early retirement — e.g. a big holiday, new car or caravan, or home renovations. These reduce the capital available to fund your ongoing income, so plan for them separately. You can add a rough total in the calculator's "Planned one-off expenses" field as a reminder; the full app can help you model the impact on sustainability.
If you own outright, include council rates, building and contents insurance, and a buffer for repairs and maintenance (e.g. $2,000–$4,000/year). If you'll still have a mortgage, use your expected repayments. If you'll rent, use current or expected rent — and remember it rises with inflation.
Electricity: Retirees often use more home heating and cooling; allow $1,500–$2,500/year for a typical household. Gas: If you have gas hot water or cooking, add $500–$1,200/year. Water: Supply plus usage, often $1,000–$1,800/year. Phone & internet: Landline, mobile(s) and broadband — $800–$1,500/year combined is common.
Food and groceries are one of the biggest categories. ASFA benchmarks suggest around $6,000–$9,000/year for a single and $10,000–$13,000 for a couple (modest to comfortable). Include general groceries, not eating out. Household items: cleaning, toiletries, small appliances — often $500–$1,500/year.
Include fuel (estimate km and litres), rego and CTP, comprehensive insurance, and servicing and repairs. A single car can easily be $3,000–$6,000/year. If you'll use public transport or taxis instead, estimate annual cost. Many retirees keep one car; some drop to none and use PT.
Out-of-pocket GP gaps, specialists, medications (including PBS scripts), dental, optical and physio add up. Health spending tends to rise with age. Allow $1,500–$4,000/year depending on health and whether you have extras cover. Don't double-count: if you enter private health premiums elsewhere, this is the gap and out-of-pocket only.
Contents insurance (if not in housing), private health (hospital and/or extras), and any life/TPD you plan to keep. Premiums rise with age — use current or slightly higher figures.
Entertainment and hobbies: dining out, movies, clubs, hobbies. Travel and holidays: one or two trips a year can be $3,000–$15,000+ depending on style. Gifts and donations: family, charity. Subscriptions: streaming, gym, magazines. These categories define "comfortable" vs "modest" retirement.
Clothing and footwear, personal care, and an other/buffer for one-offs and inflation. A buffer of 5–10% of total spending is sensible. If you support children or grandchildren (e.g. gifts, education, care), include that in gifts/donations or the optional "Children & grandchildren" field.
Planning authorities such as Queensland Government and MoneySmart recommend addressing these areas as you approach retirement.
Once you have a total income target, use our full calculator to see whether your super and Age Pension can deliver this income over 30+ years, with historical and Monte Carlo stress tests.
Use the full calculator to project super drawdown, Age Pension, and sustainability over 30+ years with real market data.
Launch Full AppDisclaimer: This calculator is for informational purposes only and does NOT constitute financial advice. SuperCalc Pro Pty Ltd does not hold an Australian Financial Services License (AFSL). The result is an indicative guide only. Always consult a licensed financial adviser for advice specific to your circumstances.