To support a ‘modest’ lifestyle in retirement, ASFA estimates that singles would need an income of around $28,220 p.a. and couples around $40,719 p.a.
A ‘modest’ retirement is considered to be more than the Government Age Pension but still having only limited travel, dining out and leisure activities.
To achieve a ‘comfortable’ retirement, ASFA estimates that single retirees would need an income of around $44,183 p.a. and couples around $62,435 p.a.
A ‘comfortable’ retirement is defined as involving a broader range of leisure activities, regular eating out and occasional international travel.
Find out more about the ASFA Retirement Standards.
Although the ASFA standards are a useful guide, if you are used to living off an above average income, you may instead want to assume you’ll need around 67%1 of your pre-retirement gross income to maintain a comparable lifestyle.
For example, if your pre-retirement income was $120,000 then you may need around $80,000 each year in retirement to maintain the same standard of living.
Alternatively, to tailor the estimate to your specific circumstances, consider using our Budget calculator.
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Any general tax information on this website is intended as a guide only and is based on our general understanding of taxation laws. It is not intended to be a substitute for specialised taxation advice or an assessment of your liabilities, obligations or claim entitlements that arise, or could arise, under taxation law, and we recommend you consult with a registered tax agent.
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