Quick Answer: The Numbers
The short answer depends on your desired lifestyle and whether you'll receive Age Pension:
| Lifestyle |
Singles |
Couples |
With Age Pension? |
| Comfortable |
$595,000 |
$690,000 |
✅ Part pension |
| Comfortable |
$1,200,000 |
$1,500,000 |
❌ No pension |
| Modest |
$100,000 |
$150,000 |
✅ Full/part pension |
| Luxury |
$1,500,000+ |
$2,000,000+ |
❌ No pension |
These figures assume you're a homeowner retiring at age 67. Non-homeowners need an additional $200,000-$300,000 to cover housing costs.
💡 Key Point: Most Australians will receive at least a part Age Pension, which significantly reduces the super you need. A couple with $690,000 in combined super can live comfortably by supplementing their super income with Age Pension.
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ASFA Retirement Standards 2025
The Association of Superannuation Funds of Australia (ASFA) publishes quarterly retirement standards that benchmark the annual budget needed for comfortable or modest retirement lifestyles.
2025-26 Annual Income Requirements
| Lifestyle |
Singles ($/year) |
Couples ($/year) |
| Comfortable |
$51,814 |
$73,031 |
| Modest |
$32,417 |
$46,620 |
What's Included in "Comfortable" Retirement?
A comfortable retirement allows you to:
- Health: Private health insurance, regular dental and optical care
- Leisure: Regular social activities, gym membership, hobbies
- Dining: Eat out frequently, enjoy quality food and wine
- Travel: Domestic holidays 2-3 times per year, international trip every 1-2 years
- Transport: Own a reasonable car, replace every 5-7 years
- Home: Maintain and improve your home, replace appliances as needed
- Clothing: Buy good quality clothes regularly
- Entertainment: Streaming services, concerts, theatre, sporting events
What's Included in "Modest" Retirement?
A modest retirement covers:
- Health: Medicare, limited private health cover
- Leisure: Some social activities, limited hobbies
- Dining: Occasional restaurant meals, mostly home cooking
- Travel: Domestic holidays once or twice per year
- Transport: Own an older car, infrequent replacement
- Home: Basic maintenance, limited improvements
- Clothing: Occasional new clothes, mostly essentials
- Entertainment: Free-to-air TV, occasional paid entertainment
⚠️ Important: ASFA standards assume you own your home outright. If you're renting or have a mortgage, you'll need significantly more income—typically an additional $15,000-$25,000/year for housing costs.
Age Pension Explained
The Age Pension is a government payment available from age 67 that provides a safety net for retirees. Understanding how it works is crucial for retirement planning because it significantly reduces the super you need.
Maximum Age Pension Rates (2025-26)
| Status |
Per Fortnight |
Per Year |
| Single |
$1,096.70 |
$28,514 |
| Couple (combined) |
$1,653.40 |
$42,988 |
| Couple (each) |
$826.70 |
$21,494 |
Assets Test Thresholds
Your Age Pension is reduced based on your assets (excluding your home). The pension reduces by $3 per fortnight ($78/year) for every $1,000 of assets above these thresholds:
| Status |
Homeowner |
Non-Homeowner |
| Single |
$301,750 |
$543,750 |
| Couple |
$451,500 |
$693,500 |
Assets Test Cut-Off Points (No Pension)
| Status |
Homeowner |
Non-Homeowner |
| Single |
$668,750 |
$910,750 |
| Couple |
$1,003,000 |
$1,245,000 |
Example: A single homeowner with $500,000 in assets is $198,250 above the threshold. Their pension reduces by $198 × $78 = $15,444/year. Maximum pension ($28,514) - reduction ($15,444) = $13,070/year part pension.
Income Test
The income test also applies, and you receive the lower result from the two tests. The income test reduces pension by 50 cents for every dollar of income above the threshold (singles: $212/fortnight, couples: $372/fortnight combined).
For most retirees with super, the assets test produces the lower pension amount, so it's the binding constraint.
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Lifestyle Scenarios: Real Examples
Scenario 1: Comfortable Retirement with Part Pension
Profile: Couple, both 67, homeowners
Combined Super: $690,000
Target Income: $73,031/year (ASFA comfortable)
Income Breakdown:
- Super withdrawal: $45,000/year (6.5% of balance)
- Age Pension: $28,000/year (part pension)
- Total Income: $73,000/year ✅
Sustainability: With 6% annual returns and 2.5% inflation, this strategy sustains for 30+ years (to age 97+).
Scenario 2: Modest Retirement with Full Pension
Profile: Single, 67, homeowner
Super Balance: $150,000
Target Income: $32,417/year (ASFA modest)
Income Breakdown:
- Super withdrawal: $9,000/year (6% of balance)
- Age Pension: $26,500/year (near-full pension)
- Total Income: $35,500/year ✅
Sustainability: Super lasts 20+ years, then full Age Pension provides $28,514/year for life.
Scenario 3: Comfortable Retirement Without Pension
Profile: Single, 67, homeowner
Super Balance: $1,200,000
Target Income: $51,814/year (ASFA comfortable)
Income Breakdown:
- Super withdrawal: $51,814/year (4.3% of balance)
- Age Pension: $0/year (assets too high)
- Total Income: $51,814/year ✅
Sustainability: With 6% annual returns and 2.5% inflation, this strategy sustains for 35+ years (to age 102+).
Scenario 4: Luxury Retirement
Profile: Couple, both 67, homeowners
Combined Super: $2,000,000
Target Income: $120,000/year (luxury lifestyle)
Income Breakdown (Years 1-17):
- Super withdrawal: $119,922/year (6.0% of balance initially)
- Age Pension: $0/year (assets above $1M threshold)
- Total Income: $119,922/year
Income Breakdown (Year 18):
- Super withdrawal: $115,011/year (balance: $1,004,373)
- Age Pension: $4,911/year (small part pension begins)
- Total Income: $119,922/year maintained
Income Breakdown (Years 19-25):
- Super withdrawal: $109,123 → $78,342/year (declining)
- Age Pension: $10,799 → $41,580/year (increasing)
- Total Income: $119,922/year maintained
Income Breakdown (Years 30-35):
- Super withdrawal: $69,527 → $68,767/year (balance: $314K → $3K)
- Age Pension: $50,395 → $51,155/year (near-full pension with indexation)
- Total Income: $119,922/year maintained
Lifestyle includes: International travel multiple times per year, luxury cars, fine dining, premium health care, generous gifts to family.
Example projection: Using a 4.8% real return assumption (7.3% nominal - 2.5% inflation), this $2 million balance sustains approximately $119,900/year for 35 years. Age Pension begins in year 18 when the super balance drops below $1 million. By year 30, you're withdrawing approximately $69,500 from super while receiving $50,400 Age Pension. The final balance after 35 years is minimal (under $5,000). This demonstrates how Age Pension acts as a safety net, allowing much higher sustainable income than super alone would support. This is an illustrative example only—actual outcomes depend on investment returns, fees, and personal circumstances.
Couples vs Singles: Key Differences
Why Couples Need Less Per Person
Couples enjoy economies of scale that reduce per-person costs:
- Housing: Share one home, utilities, maintenance
- Transport: Often share one car
- Food: Cooking for two is more efficient than cooking for one
- Insurance: Couples health insurance cheaper than two singles policies
- Entertainment: Many activities have couple discounts
Result: A comfortable retirement for a couple requires $73,031/year ($36,516 per person), while a single person needs $51,814—a 42% premium for living alone.
Age Pension Advantages for Couples
Couples receive higher combined Age Pension ($42,988) than two singles ($57,028), but the assets test is more favorable:
| Metric |
Single |
Couple |
Advantage |
| Assets threshold (homeowner) |
$301,750 |
$451,500 |
Couple: $150,000 higher |
| Cut-off point (homeowner) |
$668,750 |
$1,003,000 |
Couple: $334,250 higher |
This means couples can have significantly more super and still receive part Age Pension.
Super Splitting Strategies
Couples should consider balancing their super accounts for:
- Tax optimization: Each person has a $2 million Transfer Balance Cap
- Age Pension: Assessed on combined assets regardless of whose name
- Estate planning: Separate accounts provide flexibility
- Death benefit tax: Super paid to spouse is tax-free
💡 Pro Tip: Use contribution splitting to move up to 85% of concessional contributions from the higher-earning spouse to the lower-earning spouse. This balances accounts and can optimize Age Pension outcomes.
Early Retirement Considerations
The Age Pension Gap
If you retire before age 67 (Age Pension age), you'll face a "pension gap" where you have no government support. This requires additional super:
| Retirement Age |
Years Until Pension |
Extra Super Needed (Single) |
Extra Super Needed (Couple) |
| 60 |
7 years |
$200,000-$250,000 |
$300,000-$350,000 |
| 62 |
5 years |
$150,000-$180,000 |
$220,000-$260,000 |
| 65 |
2 years |
$60,000-$80,000 |
$90,000-$120,000 |
Preservation Age vs Age Pension Age
You can access your super at preservation age (55-60 depending on birth year), but Age Pension isn't available until 67. This creates a gap period.
| Born |
Preservation Age |
Pension Age |
Gap Years |
| Before 1 July 1960 |
55 |
67 |
12 years |
| 1 July 1960 - 30 June 1961 |
56 |
67 |
11 years |
| 1 July 1961 - 30 June 1962 |
57 |
67 |
10 years |
| 1 July 1962 - 30 June 1963 |
58 |
67 |
9 years |
| 1 July 1963 - 30 June 1964 |
59 |
67 |
8 years |
| After 30 June 1964 |
60 |
67 |
7 years |
Transition to Retirement (TTR) Strategy
If you're still working part-time, consider a TTR pension:
- Access super from preservation age while still working
- Withdraw 4-10% annually from super
- Reduce work hours gradually
- Maintain lifestyle while transitioning to full retirement
⚠️ Reality Check: Early retirement sounds appealing, but retiring at 60 instead of 67 typically requires 40-50% more super due to longer retirement period and no Age Pension for 7 years. Make sure you've run the numbers before making this decision.
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Calculate Your Personal Retirement Needs
Step-by-Step Process
Step 1: Estimate Your Annual Expenses
List all expected annual costs:
- Housing (rates, insurance, maintenance): $5,000-$8,000
- Food and groceries: $10,000-$15,000
- Health (insurance, medical, dental): $5,000-$10,000
- Transport (car, fuel, rego, insurance): $5,000-$10,000
- Utilities (electricity, gas, water, internet): $4,000-$6,000
- Leisure and entertainment: $5,000-$15,000
- Travel and holidays: $5,000-$20,000
- Clothing and personal care: $2,000-$5,000
- Gifts and donations: $1,000-$5,000
- Contingency (unexpected costs): $3,000-$5,000
Total: $45,000-$99,000/year (depending on lifestyle)
Step 2: Subtract Age Pension Income
Estimate your Age Pension based on expected super balance:
- Under $300,000 (single) or $450,000 (couple): Near-full pension
- $300,000-$600,000 (single) or $450,000-$900,000 (couple): Part pension
- Over $670,000 (single) or $1,000,000 (couple): No pension
Step 3: Calculate Required Super Withdrawal
Annual expenses - Age Pension = Required super withdrawal
Example: $60,000 expenses - $15,000 pension = $45,000 from super
Step 4: Determine Required Super Balance
Use the "rule of 25": Multiply annual super withdrawal by 25-30
Example: $45,000 × 25 = $1,125,000 minimum super needed
Factors That Increase Your Super Needs
- Non-homeowner: +$200,000-$300,000
- Early retirement (before 67): +$150,000-$250,000
- Luxury lifestyle: +$500,000-$1,000,000
- Leaving inheritance: +$100,000-$500,000
- Health issues: +$50,000-$200,000
- Supporting adult children: +$100,000-$300,000
Factors That Decrease Your Super Needs
- Part-time work in retirement: -$100,000-$300,000
- Downsizing home: -$200,000-$500,000 (capital released)
- Modest lifestyle: -$200,000-$400,000
- Other income (rental, dividends): -$150,000-$400,000
- Inheritance expected: Variable
✅ Pro Tip: Don't just calculate the minimum you need. Add a 20-30% buffer for unexpected costs, market downturns, and longer-than-expected lifespan. Better to have too much than too little.
🎯 Explore Your Retirement Projections
Our free calculator models various scenarios, factoring in inflation, investment returns, Age Pension estimates, and more. Use these projections as a starting point for discussions with your financial adviser.
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Frequently Asked Questions
Q: How much super do I need to retire comfortably in Australia?
According to ASFA, you need $595,000 for a single person or $690,000 for a couple to retire comfortably at age 67 (as of 2025). This assumes you'll also receive a part Age Pension. For a comfortable retirement without any Age Pension, you'd need approximately $1.2 million for singles or $1.5 million for couples.
Q: What is the ASFA retirement standard?
The ASFA (Association of Superannuation Funds of Australia) retirement standard benchmarks the annual budget needed for Australians to fund either a comfortable or modest standard of living in retirement. For 2025, a comfortable retirement requires $51,814/year for singles and $73,031/year for couples. A modest retirement requires $32,417/year for singles and $46,620/year for couples.
Q: How much Age Pension will I receive?
The maximum Age Pension for 2025-26 is approximately $28,514/year for singles and $42,988/year for couples (combined). However, most retirees receive less due to assets and income tests. The pension reduces by $3 per fortnight for every $1,000 of assets above the threshold. Singles with assets over $301,750 (homeowners) or $543,750 (non-homeowners) receive no pension. For couples, the cut-offs are $451,500 (homeowners) and $693,500 (non-homeowners).
Q: Can I retire with $500,000 in super?
Yes, you can retire with $500,000 in super, but your lifestyle will depend on whether you're single or a couple, and whether you receive Age Pension. A single homeowner with $500,000 would receive a part Age Pension and could sustain approximately $40,000-$45,000/year income, providing a modest to comfortable lifestyle. A couple with $500,000 combined would receive a larger part pension and could sustain approximately $50,000-$55,000/year, providing a modest lifestyle.
Q: What's the difference between a modest and comfortable retirement?
A modest retirement covers basic needs: reasonable health, limited leisure activities, occasional restaurant meals, and domestic holidays. A comfortable retirement includes: private health insurance, regular leisure activities, frequent restaurant meals, domestic and occasional international holidays, and ability to replace car every few years. The difference is approximately $19,000/year for singles and $26,000/year for couples.
Q: When can I access my superannuation?
You can access your super when you reach your preservation age and retire, or at age 65 regardless of retirement status. Preservation ages range from 55-60 depending on birth year: born before July 1960 = 55, July 1960-June 1961 = 56, July 1961-June 1962 = 57, July 1962-June 1963 = 58, July 1963-June 1964 = 59, after June 1964 = 60. Age Pension is available from age 67.
Q: How long will $1 million in super last?
Assuming 6% annual returns and 2.5% inflation, $1 million in super for a single homeowner aged 67 could sustain approximately $65,000-$70,000/year for 30+ years (to age 97+) when combined with Age Pension. Without Age Pension, it could sustain approximately $55,000-$60,000/year for 30 years. The exact duration depends on investment returns, fees, inflation, and withdrawal strategy.
Q: Do I need more super if I'm not a homeowner?
Yes, non-homeowners need significantly more super to cover rent or mortgage payments. ASFA estimates non-homeowners need an additional $200,000-$300,000 in super to achieve the same lifestyle as homeowners. Alternatively, you'll need to budget for ongoing housing costs of $15,000-$25,000/year for rent, which reduces your available income for other expenses.
Q: Should couples combine their super or keep it separate?
From a practical perspective, couples should coordinate their super strategy even if accounts remain separate. Key considerations: (1) Transfer Balance Cap is per person ($2 million each), (2) Age Pension is means-tested on combined assets and income, (3) Contribution splitting can balance accounts for tax optimization, (4) Estate planning may favor separate accounts. Our retirement calculator can help model both scenarios for comparison purposes. Consult a financial adviser to determine the best approach for your circumstances.
Q: What if I retire before Age Pension age?
If you retire before age 67 (Age Pension age), you'll need more super to cover the gap years without pension support. For example, retiring at 60 means 7 years without Age Pension. You'll need approximately $150,000-$200,000 extra in super to cover this period, or plan for lower income during gap years. Consider transition to retirement (TTR) strategies if still working part-time.
Q: How do I calculate my personal retirement needs?
You can estimate your personal retirement needs by: (1) Listing your expected annual expenses (housing, food, health, leisure, transport), (2) Estimating Age Pension income (if eligible), (3) Multiplying remaining amount by 25-30 (years in retirement), (4) Adjusting for investment returns and inflation. Our free retirement calculator can help model these scenarios for educational purposes, considering your age, super balance, desired lifestyle, and Age Pension eligibility. Always consult a financial adviser for personal advice.
Q: What withdrawal rate should I use in retirement?
The traditional 4% rule suggests withdrawing 4% of your balance in year 1, then adjusting for inflation annually. However, Australian retirees should consider: (1) Minimum withdrawal rates (4-14% depending on age), (2) Age Pension means testing (higher withdrawals may increase pension), (3) Dynamic withdrawal strategies that adjust based on market performance. Our Advanced Calculator can model multiple withdrawal strategies for educational purposes. Consult a financial adviser to determine the optimal approach for your personal situation.
Q: How does the Age Pension assets test work?
The Age Pension assets test reduces your pension by $3 per fortnight ($78/year) for every $1,000 of assets above the threshold. For 2025-26, thresholds are: Singles (homeowner) $301,750, Singles (non-homeowner) $543,750, Couples (homeowner) $451,500, Couples (non-homeowner) $693,500. Your home is excluded from the assets test. Superannuation in pension phase is included. The income test is applied separately, and you receive the lower result.
Q: What if I want to leave an inheritance?
If you want to leave an inheritance, you'll need more super than the minimum required for your lifestyle. You can estimate a target inheritance amount (e.g., $200,000) and add this to your retirement savings target. Be aware that leaving large inheritances means lower income during retirement. Consider whether your children would prefer you enjoy a comfortable retirement vs receiving an inheritance. Our calculator lets you model scenarios with different target final balances for educational purposes.
Q: How do investment fees impact my retirement savings?
Investment fees significantly impact long-term retirement savings. A 1% difference in fees on a $500,000 balance over 20 years costs approximately $100,000 in lost returns. Typical super fund fees: Administration $50-$500/year, Investment fees 0.5-1.5%, Transaction costs 0.05-0.15%. Compare your fund's fees using our calculator. Even switching from 1.2% to 0.7% total fees can increase your sustainable retirement income by $5,000-$10,000/year.
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⚠️ IMPORTANT DISCLAIMER
This guide provides general information only and does not constitute financial advice. The information is based on our understanding of current Australian superannuation and Age Pension rules as of November 2025, which may change. Every person's circumstances are unique, and what's appropriate for one person may not be suitable for another.
Before making any decisions about your retirement planning, you should:
• Consider your personal circumstances, goals, and risk tolerance
• Seek advice from a qualified financial adviser
• Review current Centrelink, ATO, and ASFA guidance
• Consider your health, life expectancy, and family situation
SuperCalc Pro is a calculator and information tool only. We are not licensed to provide financial advice. Always consult with licensed professionals before making retirement decisions.
ASFA retirement standards and Age Pension rates are updated quarterly. Check official sources for the most current figures.