Have you ever asked yourself, “How much do I need to retire in Australia?” If so, you’re not alone. Retirement planning can feel overwhelming, but at the heart of every great retirement strategy lies one essential piece: your magic retirement number—the total amount of savings you’ll need to retire comfortably and confidently.
Let's dive into the key factors that influence your magic number and how you can determine the right amount for your retirement.
What is your retirement number and why it matters
Your retirement number is the total amount of money you’ll need to cover your living expenses, healthcare, and lifestyle goals after you stop working.
Knowing this number helps you:
- Set clear financial goals
- Choose the right retirement strategy
- Avoid under-saving or over-saving
- Gain peace of mind about your future
How to calculate your retirement number
There’s no one-size-fits-all answer, but following these three key steps can give you a clear starting point.
Step 1: Define your ideal retirement lifestyle
Imagine your perfect retirement. Do you see yourself travelling Australia, spending time with grandchildren, or finally taking up a passion project?
The first step in retirement planning is to visualise your ideal retirement lifestyle.
This vision becomes the foundation of your retirement number. The clearer your picture, the more accurately you can plan. Consider:
- Where do you want to live?
- What kind of lifestyle do you want to maintain?
- Will you work part-time, volunteer, or fully retire?
- What experiences or goals do you want to achieve?
This step is about dreaming big - but also being realistic about what will bring you joy and fulfillment in your later years.
Step 2: Review your finances and estimate retirement costs
Once you’ve defined your retirement lifestyle, it’s time to evaluate your finances and estimate how much that lifestyle will cost.
Start by reviewing:
- Your current income and expenses
- Super balance and contributions
- Other savings and investments
- Debts or financial obligations
Ask yourself:
- How much are you spending today?
- Will your expenses increase or decrease in retirement?
- By how much—5%, 10%, or more?
Factor in potential changes like downsizing, increased healthcare costs, or reduced commuting.
Consider trying a retirement calculator to determine how much you’re likely to have if you continue saving at your current rate.
Compare your savings target with standard benchmarks
To help gauge your target, consider the ASFA Retirement Standard, which estimates annual costs for a comfortable retirement at around $52,000 for singles and $74,000 for couples aged between 65-84 (March 2025). The lump sum needed to support this lifestyle is roughly $595,000 for singles and $690,000 for couples, assuming home ownership and some Age Pension support.1
For a more modest lifestyle, the required lump sum is much lower—about $100,000—as this level largely relies on the Age Pension, which provides important financial support for many retirees.
Don’t forget government support
It’s important to remember that the Age Pension acts as a safety net for many Australians, particularly those with lower super balances. Many retirees rely on a combination of super and government support to meet their needs in retirement.
Step 3: Create a savings strategy to reach your retirement number
Now that you know what you want and what it might cost, it’s time to build a plan to get there.
Your savings strategy should include:
- Setting a target retirement number based on your lifestyle and projected expenses
- Maximising super contributions, including salary sacrifice and government co-contributions
- Investing wisely to grow your wealth over time—consider a mix of shares, property, and fixed income
- Reviewing and adjusting your plan regularly as your circumstances change
Also, consider setting milestone goals—like saving a certain amount by age 40, 50, or 60—to stay on track and motivated.
Tools to help you plan
Planning for retirement doesn’t have to be overwhelming—there are plenty of tools available to help you get started and stay on track.
One of the most effective ways to refine your retirement number is by using online retirement calculators. These tools can help you estimate how much you’ll need based on your:
- Age and planned retirement age
- Current savings and superannuation balance
- Expected investment returns
- Lifestyle goals and spending habits
To make this easier, MLC offers a suite of easy-to-use tools and calculators designed to help you plan with confidence. Whether you're calculating your retirement income, exploring super contributions, or setting financial goals, these tools can give you a clearer picture of your financial future.
Explore MLC’s tools and calculators here.
Is your super retirement ready?
One of the tools available to help you prepare is our Retirement Projector. This easy-to-use calculator helps you explore how your super could grow over time and what your retirement income might look like. It’s designed to give you clarity and confidence, whether retirement is just around the corner or still a few years away.
What can you do with the retirement projector? You can use it to:
- Estimate your future super balance – for yourself and your partner
- Check potential eligibility for the government Age Pension
- Understand your investment risk appetite
- Explore how additional contributions could boost your retirement savings
Discover if your super is retirement ready. Get your projection today.
Get your personalised super report
Another tool available to eligible members at no additional cost is our Personal Super Calculator. By securely using your information, it generates a personalised super report in under 10 minutes. This report provides advice and strategies you can take today and to help you create the future you want tomorrow.2
For more personalised guidance, consider speaking with a financial advisor. They can help tailor a retirement strategy that aligns with your goals, risk tolerance, and timeline.
Quick tips to reach your retirement number
- Start early: The earlier you begin saving, the more time your money has to grow.
- Maximise super contributions: Take advantage of employer contributions and salary sacrifice.
- Diversify investments: Spread your assets across shares, property, and fixed income.
- Review regularly: Life changes—so should your plan.
Reaching your retirement savings goal in Australia isn’t out of reach—it’s a matter of knowing your magic number and planning early. Whether you're in your 30s or approaching retirement, calculating your retirement number helps you take control of your financial future. Start planning today for a retirement that’s not only secure but truly fulfilling.
Resources to help you on your retirement journey
We have a range of further useful resource that can help you build financial confidence, grow your super and plan your retirement.
