Retirement planning in Australia

Firstly, when can I retire in Australia?

You can retire whenever you want to, however most people aren't able to afford to retire until well into their 50s or 60s.

Note that retirement and accessing your superannuation are two seperate things - just because you can retire at any age, it doesn't mean you'll get access to your super. To access your super before 65 you will need to be at least 60 and meet a condition of release (retirement is one of these).

How much do you need to retire?

The first step to planning your retirement is working out how much you need to retire, and how long you'll need to keep working until you have this.

Official targets

According to the ASFA Retirement Standard as of March 2025, it says you'll need the following lump sum amounts in retirement:

• For a single person aged 67 you'll need: $595,000 for a comfortable retirement if you own your home, or $100,000 for a modest retirement.
• For a couple both aged 67, you'll need a combined: $690,000 for a comfortable retirement if you own your home, or $100,000 for a modest retirement.

As you can see, there is a big difference in targets for a comfortable versus modest retirement. It's up to you to look at how you currently spend your money, and how you wish to spend while you're retired and what kind of lifetsyle you'd like.

Your living expenses

To help figure out how much money you're likely going to need in retirement, consider the following:

• Will you have paid off your home loan and, if not, how much longer will you need to make repyaments?
• If you don't own a home, what are your ongoing rental payments likely to be (remembering to account for ongoing inflation)?
• What medical expenses do you currently have, and do you foresee any others in the future?
• Do you plan to take regular domestic or international trips when you're retired? If so, how much will this cost?
• Will you downsize your home and, if so, how much of a profit do you expect from that?
• Are you planning to sell any other investments to help fund your retirement, such as shares?
• Will you continue to receive any form of income, for example via part-time work, dividend payments or rental income?

Aged pension

Do you expect to receive any Aged Pension benefits when you're retired, and if so, how much?

You can check how much you're entitled to via the government's site.

Your superannuation

For most Australians, particularly younger generations, the superannuation you build up throughout your working life will be the main way you fund your retirement. However, many Australian's will not have enough.

You can use Finder's superannuation calculator to get an estimate of how much super you'll have when you retire, and if your super is on track.

If you don't think your super is on track, here are a few things you can do now to help boost your balance ahead of retirement:

• Consolidate your super if you have more than 1 fund open in your name to save on fees
• Make sure you're in a high-performing, low-fee super fund
• Make extra contributions to your super if you're able to via salary sacrifice
• Work out a plan to split super contributions with your partner if you take take out of work to raise children
• Take advantage of the government's co-contribution scheme

Expert insight

"It takes us forty years or so to build our retirement nest egg; that is four decades' worth of super contributions from a range of sources: you, your employer, the government and compound growth. Use all of these sources, through every decade, to ensure your nest is well feathered."

Pascale Helyar-Moray

Superannuation and wealth expert

How to plan for retirement

• Retirement age. Determine when you want to retire, considering your financial goals and lifestyle preferences.
• Calculating living costs. Estimate the amount required for your desired lifestyle.
• Growing your super. Use the strategies listed above to help maximise your retirement savings.
• Lifestyle and goals. Define your post-retirement lifestyle and set achievable financial goals aligned with your aspirations.
• Grow your savings. Implement strategies to boost your savings (outside of just super), considering investment options and potential returns.
• Paying off debt. Prioritise clearing debts to help you save more money and ensure financial freedom during retirement.
• Take care of estate planning. Ensure your affairs are in order with proper estate planning, including wills and power of attorney.

What else should I consider when planning for retirement?

Here are a few important things to factor into your retirement plan:

• Insurance coverage. As you get older your insurance needs may increase, especially for health. Review and update your insurance policies to ensure you have adequate coverage for unforeseen circumstances.
• Estate planning. Establish or revisit your estate plan, including wills, powers of attorney, and inheritance strategies. This included nominating a beneficiary for your superannuation's death benefit.
• Return to work considerations. Explore the possibility of returning to work post-retirement. Whether for financial reasons or personal fulfilment, understanding the financial and tax implications can shape your retirement strategy.

Frequently Asked Questions

• How can I budget for my retirement?

  Consider your current living expenses and how this will change when you're retired. Use a budget planner to estimate your expenses and income, providing a clear financial roadmap for your retirement journey.

• Can I return to work in retirement?

  Yes, you can return to work after you're retired if you want or need to. In most cases you'll still be able to access your super, provided you've already met a condition of release.

• How much money do I need to retire?

  The amount of money you need in order to retire will depend on your lifestyle and ongoing expenses. The official retirement standard suggests you'll need a lump sum of around $600,000.

To make sure you get accurate and helpful information, this guide has been reviewed by Pascale Helyar-Moray, a member of Finder's Editorial Review Board.

Written by

Andrew Munro

Editor

Andrew Munro was the global cryptocurrency editor at Finder. During his time he covered all aspects of cryptocurrency and the blockchain. Before he became cryptocurrency editor, he was a content writer for Finder covering various topics over his nearly 5 years in the role. Prior to joining Finder he was a web copywriter. Andrew has a Bachelor of Arts from the University of New South Wales. See full bio

Co-written by

Shubham Pandey

Writer

Shubham Pandey is a writer specialising in investing and superannuation with five years of experience across ANZ, Pedestrian Group, Valnet, BeInCrypto and AMBCrypto. He holds a Master’s degree in Finance with a minor in Communication and an ASIC RG 146 qualification, which ensures a solid understanding of the financial regulations that govern investment advice. See full bio