Grow your super
Top up while you're earning, to enjoy more in retirement. Adding extra to your super while you're working can help boost your income when you retire. One way to top up your super is through voluntary super contributions.
How much super do I need to save for retirement?
According to The Association of Superannuation Funds of Australia (ASFA), two-thirds of your current income (or 67%) is a general rule of thumb to maintain your lifestyle in retirement, assuming you own your home and are in reasonable health. You’re likely to need less money than you need now because when you retire, you’re not paying tax on your income or making super contributions, and you might have paid off your mortgage and other debt.
The ASFA retirement standard has a handy breakdown of expenses for a comfortable and modest retirement lifestyle (assuming you are getting the Age pension) and an estimate of the income needed to achieve this.
Superannuation balances required to achieve a comfortable retirement at age 67
| Couple | Single |
|---|---|
| $690,000 | $595,000 |
Superannuation balances required to achieve a modest retirement at age 67
| Couple | Single |
|---|---|
| $100,000 | $100,000 |
Want to crunch the numbers?
Use our retirement income needs calculator to guide you.
How should I budget for retirement?
The ASFA retirement standard estimates you’ll need between $34,522 pa for a modest retirement to $53,289 pa for a comfortable retirement income if you are single. For couples, they suggest $49,992 pa for a modest retirement to $75,319 pa for a comfortable retirement income.
Are you on track? Use our calculator to see.
What’s the difference between a modest and comfortable lifestyle?
The ASFA Retirement Standards says that a modest retirement lifestyle is considered better than the Age Pension, but still only allows for the basics. A comfortable retirement lifestyle enables an older, healthy retiree to be involved in a broad range of leisure and recreational activities and to have a good standard of living through the purchase of such things as; household goods, private health insurance, a reasonable car, good clothes, a range of electronic equipment, and domestic and occasionally international holiday travel.
| Comfortable lifestyle | Modest lifestyle | Age Pension |
| Own a reasonable car, car insurance and maintenance/ upkeep | Owning a cheaper, older, more basic car | Limited budget to own, maintain or repair a car |
| Home repairs, updates and maintenance to kitchen and bathroom appliances over 20 years | Limited budget for home repairs, household appliances | Struggle to pay for repairs, such as leaky roofs or major plumbing problem |
| Confidence to use air conditioning in the home, afford all utilities | Need to keep a close watch on all utility costs and make sacrifices | Limited budget for home heating in winter |
| Occasional restaurant meals, home delivery meals, take-away coffee | Limited meals out at inexpensive restaurants, infrequent home-delivery or take-away | Only local club special meals or inexpensive take-away |
Are there other ways to fund my retirement?
The money you’ll have at retirement is usually made up of a mix of your super, other investments and income you have, and for more than 60%* of us, the Age Pension.
Check to see if you’re eligible because it may help bridge the gap between what you have and the income you need.
*https://www.aihw.gov.au/reports/australias-welfare/income-support-older-australians
Let's look at your situation
Start your retirement planning in Australia with our retirement needs calculator. It can help determine your own budget and how much super you’ll need to achieve this lifestyle.
Regularly keep track of your super to see how you’re tracking. If your super could do with a little TLC, it’s better to get onto it sooner rather than later. You can also consider adding extra to your super through voluntary contributions or salary sacrifice while you're still working to help boost your income when you retire.
Need a super health check? Book a chat with our super specialists.
More retirement needs explained
How much does a couple need to retire?
Ideally, a couple in Australia right now would need around $690,000 in super and other investments to retire comfortably, or around $100,000 to retire modestly along with the Age pension, assuming you own your own home and you have no major health concerns.
Source: https://www.superannuation.asn.au/resources/retirement-standard/
How much super do I need to retire at 60 or 65?
Generally, retiring at age 60 may require a larger super balance compared to retiring at age 65, as you will need to fund a longer retirement period. Using a retirement calculator can help you figure out how much super you need based on your retirement goals.
Is $1 million enough to retire at 60 in Australia?
Yes. Looking at the ASFA Retirement Standard, a couple needs approx. $690,000 for a comfortable retirement along with the Age pension ($595,000 for singles), given they own their home and are of reasonable health.
Source: https://www.superannuation.asn.au/resources/retirement-standard/
What happens if you have no superannuation?
If you have little or no super to retire on, then your primary source of income is likely to be the Age Pension (unless you have other investments outside of super). If you are eligible, you can only access the Age pension when you reach 67 years of age, and the current maximum basic rate is around $1,000 per fortnight for an individual and around $1,500 per fortnight (combined) for most couples.
(Source: Serviceaustralia.gov.au 1 2).
How much super do most people have?
According to ASFA, the median super balance and average super balance by age as of June 2022 are as follows:
| Age | Average balance (Male) | Median balance (Male) | Average balance(Female) | Median balance(Female) |
| under 18 | $7,666 | $289 | $5,088 | $185 |
| 18-24 | $8,069 | $4,617 | $7,297 | $4,275 |
| 25-29 | $25,407 | $17,545 | $23,273 | $17,840 |
| 30-34 | $53,154 | $39,796 | $44,053 | $34,327 |
| 35-39 | $90,822 | $70,181 | $71,686 | $54,391 |
| 40-44 | $131,792 | $39,796 | $44,053 | $34,327 |
| 45-49 | $180,958 | $133,616 | $136,667 | $93,471 |
| 50-54 | $237,084 | $162,146 | $176,824 | $111,063 |
| 55-59 | $301,922 | $186,255 | $228,259 | $128,675 |
| 60-64 | $380,737 | $205,385 | $300,717 | $153,685 |
| 65-69 | $428,533 | $206,091 | $379,483 | $191,475 |
| 70-74 | $474,898 | $200,349 | $422,348 | $198,005 |
| 75 or more | $487,525 | $166,185 | $416,279 | $161,201 |
Source: The Association of Superannuation Funds of Australia, September 2024
Still have questions?
Retirement is different for everyone.
For confidence planning your retirement, book a chat with our super specialists.
Where to next?
Thinking about retirement?
Whether you plan to keep working or retire one day make sure you’re geared up to make the most of your super. We’re here to support you to prepare for the next phase with confidence and help you with any questions.
Be financially prepared for retirement
We all have grand dreams of retiring by the beach, seeing family more, or travelling around the world once we hang up our working boots for good. But, for most, retirement sneaks up on us.