The amount you need depends on your lifestyle, retirement goals, and expenses. Factors like where you live, how much you plan to travel, and whether you own your home all influence the amount you need.

As a guide for how much money you will need in retirement, ASFA suggests the following for people aged 65-84¹:

• Modest Lifestyle: Around $32,930 per year for a single person or $47,475 for a couple
• Comfortable lifestyle: About $51,814 per year for a single person and $73,031 for a couple.

To achieve a comfortable retirement, ASFA also calculates the amount of savings required by retirement at age 67 are around $595,000 for a single person and $690,000 for a couple.

If you’re dreaming of travel, fine dining, or golfing daily, you’ll likely need more than that. Ultimately, it’s about ensuring your savings can support the lifestyle you want.

How to figure out how much you need to retire

1. Think about the kind of lifestyle you want in retirement

The lifestyle you want in retirement plays a big role in how much money you'll need. For some, retirement is about slowing down and enjoying quality time with family. For others, it’s the chance to explore new hobbies or check-off dreams like traveling.

If you want to maintain the same comfort level as your working years, you'll need to calculate the cost of those expenses. If you’re happy with a more modest lifestyle, you may not need as much.

2. Estimate your big costs in retirement

Consider any major expenses that could be part of your retirement plans, such as: paying off your mortgage, rent, home renovations, travel or medical expenses. You may also be considering providing financial support to your children or grandchildren.

3. How long do you expect to spend in retirement

The longer you expect to spend in retirement, the more you’ll need. Estimate how long you’ll be in retirement, considering your health and life expectancy. Many people can now anticipate living well into their eighties. As a result, if you retire at 65, you may need to rely on retirement income for two decades or more.

Your sources of retirement income

Once you have a clear understanding of how much you'll need for your retirement, you can begin developing strategies to generate that income. Your retirement funds will likely come from several sources, including:

1. Super: Understanding your current and future super balance is crucial, as it forms a significant portion of your retirement savings. Find out if your super is on track to achieve your retirement goals with our easy-to-use calculator.

2. Age Pension: depending on your circumstances, income and assets, you could be eligible for a full or part Age Pension.

3. Investments, savings and inheritance: You may plan to downsize, sell investments, or use savings, term deposits, or an inheritance to support your retirement.

Worried your retirement savings might fall short?

Don’t stress! There are some simple steps you can take right now to boost your super and set yourself up for a more comfortable future. Check out some of the ways you can grow your super here.

¹ ASFA Retirement Standard September 2024. The estimated budget assumes that the retirees own their own home outright and are relatively healthy.

Important information and disclaimer 
This article has been prepared by NULIS Nominees (Australia) Limited ABN 80 008 515 633 AFSL 236465 (NULIS) as trustee of the MLC Super Fund ABN 70 732 426 024. NULIS is part of the Insignia Financial group of companies comprising Insignia Financial Ltd ABN 49 100 103 722 and its related bodies corporate (‘Insignia Financial Group’). The information in this article is current as at March 2025 and may be subject to change. This information may constitute general advice. The information in this article is general in nature and does not take into account your personal objectives, financial situation or needs. You should consider obtaining independent advice before making any financial decisions based on this information. It is recommended that you consider the relevant Product Disclosure Statement (PDS) and Target Market Determination (TMD) before you make any decisions about your superannuation. You can obtain the latest copy of the PDS (or other disclosure documents) and TMD by calling us on 132 652 or by searching for the applicable product at mlc.com.au. You should not rely on this article to determine your personal tax obligations. Please consult a registered tax agent for this purpose. Opinions constitute our judgement at the time of issue. The case study examples (if any) provided in this article have been included for illustrative purposes only and should not be relied upon for decision making. Subject to terms implied by law and which cannot be excluded, neither NULIS nor any member of the Insignia Financial Group accept responsibility for any loss or liability incurred by you in respect of any error, omission or misrepresentation in the information in this communication.