Do you have enough money to retire?

How much do you need to retire?

Let's take a look at some targets from leading superannuation industry bodies. These vary slightly, but ultimately they both suggest you'll need several hundred thousand dollars by the time you're 65.

Super Consumers Australia targets

If you're currently aged 65 and single, you'll need:

• $75,000 for a low level of spending in retirement
• $310,000 for a medium level of spending in retirement
• $876,000 for a high level of spending in retirement

If you're currently 65 and in a couple, you'll need a combined:

• $96,000 for a low level of spending in retirement
• $421,000 for a medium level of spending in retirement
• $1.22 million for a high level of spending in retirement

Due to inflation, these savings targets will continue to increase each year. Therefore, if you're not yet 65, the amount you'll need in retirement will be higher again.

If you're currently aged 55 and single, you'll need:

• $130,000 for a low level of spending in retirement
• $395,000 for a medium level of spending in retirement
• $846,000 for a high level of spending in retirement

If you're currently 55 and in a couple, you'll need a combined:

• $168,000 for a low level of spending in retirement
• $548,000 for a medium level of spending in retirement
• $1.18 million for a high level of spending in retirement

These figures all assume you own your own home with no mortgage left. If you don't, you'll need to target an even higher savings balance.

The Association of Superannuation Funds of Australia (ASFA)

The ASFA Retirement Standard as of March 2025 suggest you'll need the following lump sum amounts in retirement:

For a single person aged 67 you'll need:

• $100,000 for a modest retirement if you own your home
• $340,000 for a modest retirement if you rent
• $595,000 for a comfortable retirement if you own your home

For a couple both aged 67, you'll need a combined:

• 100,000 for a modest retirement if you own your home
• $385,000 for a modest retirement if you rent
• 690,000 for a comfortable retirement if you own your home

Modest versus comfortable retirement

Here's a brief overview of what the ASFA Retirement Standard considers to be a modest retirement versus a comfortable retirement.

Important things to consider about these targets

Retirement planning is a highly individualised process, and everyone's financial situation and lifestyle goals are unique. While the ASFA Retirement Standard (AFSA) and Super Consumer Australia findings provide valuable guidance, it's essential to remember that these figures should be used as estimates and not as strict rules.

What to consider when planning your own retirement target

Retirement savings targets can vary depending on your income, lifestyle, and individual circumstances. Determining how much you'll need for a comfortable retirement depends on various factors.

Your retirement expenses: Consider the significant expenses you anticipate in retirement

• Paying off your mortgage
• Rent
• Home renovations
• Travel
• Medical costs
• Insurances
• Car
• Utility bills

Your desired lifestyle: To estimate the amount you need for your desired retirement lifestyle:

• Use a budget planner if you're nearing retirement to calculate expected expenses.
• If you own your home, a rule of thumb is to plan for approximately two-thirds (67%) of your pre-retirement income to maintain your standard of living during retirement.

Why is saving for retirement important?

1. Building financial security: In your 20s, 30s, and 40s, focus on building savings and growing your superannuation for a secure future.

2. Assessing retirement readiness: Approaching your 50s and 60s, evaluate your financial situation in relation to retirement, factoring in assets, investments, and potential aged care needs.

3. Considering life expectancy: Life expectancy in Australia has risen significantly. Plan for a retirement that can sustain you over a potentially longer lifespan.

4. Continuous improvement: At any age, it's not too late to enhance your financial prospects. Consult a retirement planning professional to ensure you're on the right track.

By starting early and adapting to changing circumstances, you can work towards a financially secure retirement, even as life expectancies increase.

How much should I have saved before I retire?

The amount you need saved in your superannuation for a comfortable retirement varies depending on your age and retirement goals. To help you estimate the super balance required for a comfortable retirement, we've prepared a table with age-specific guidelines.

For example, if you're targeting a balance of $595,000 for a comfortable retirement you'd need to have at least $270,000 in super at age 50.

To calculate your potential super balance at retirement and see if yours is on track, you can use Finder's superannuation calculator.

This tool takes into account factors such as your current super balance, contributions, expected returns, and retirement age to help you estimate your super balance for retirement.

How can I budget for my retirement?

Budgeting for retirement is a critical step in ensuring financial security during your later years. To help you get started, here are some of the most common factors that can impact your ability to save for retirement:

• Current financial situation. Assess your current financial status, including savings, investments, debts, and assets.
• Income sources. Consider your income sources during retirement, such as superannuation, pensions, part-time work, and potential rental income.
• Retirement expenses. Estimate your expected retirement expenses, covering essentials like housing, healthcare, and daily living, as well as discretionary spending for leisure and travel.
• Debt management. Evaluate your outstanding debts and create a plan to pay them off before retirement to reduce financial burdens.
• Lifestyle choices. Determine the lifestyle you desire during retirement, as this will influence your budgeting decisions.
• Inflation. Factor in the impact of inflation on your retirement expenses over time.
• Emergency fund. Establish an emergency fund to cover unexpected expenses during retirement, preventing the need to dip into your retirement savings.
• Professional advice. Seek guidance from financial advisors or planners who specialise in retirement planning to create a customised budget that aligns with your retirement goals.

To assist you further in creating a retirement budget, you can use our budget planner. This tool helps you organise your finances and estimate your retirement savings needs more effectively.

How will inflation impact my retirement?

Inflation can significantly affect your retirement savings and purchasing power over time. Here's how:

• As prices for goods and services rise due to inflation, your expenses in retirement will likely increase.
• Without adjusting your retirement income for inflation, your money may not stretch as far, potentially leading to a reduced standard of living.
• To mitigate the impact of inflation, consider investments that have the potential to outpace inflation, such as growth assets like stocks.
• Regularly reviewing your retirement budget and financial plan can help ensure your retirement income keeps up with rising costs.

Frequently Asked Questions

• How can I grow my super?

  To grow your super; make sure you're in a low-fee, high-performing fund and making regular contributions. To learn effective strategies to boost your super, you can visit our guide on how to grow your super.

• How to retire early?

  Early retirement is achievable with careful planning. Explore the FIRE (Financial Independence, Retire Early) movement in our comprehensive guide on retiring early to understand the principles and steps to retire on your terms.

• Can I work after my retirement?

  Yes, you can work after retirement if you choose to. Many retirees opt for part-time work, consulting, or pursuing passion projects. Keep in mind that your decision may impact your superannuation and pension eligibility, so it's essential to understand the implications before returning to work.

• When should I retire?

  The ideal retirement age varies for each individual, but there are some key considerations to keep in mind:

  1. Preservation age: Your preservation age, typically between 55 and 60, is when you can access your superannuation. This age is a common starting point for retirement planning.
  2. Transition to retirement: Consider transitioning to part-time work or using a Transition to Retirement (TTR) strategy as you approach retirement. TTR allows you to access your super while still working, providing financial flexibility. TTR starts at 60.
  3. Retire at 67: Many individuals target retirement at 60 due to its accessibility and aligning with the Age Pension eligibility. The amount you need to retire at 67 depends on your desired lifestyle and expenses.

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

Alison Banney

Editorial Manager, Money

Alison is an editor at Finder and a personal finance journalist with over 10 years of experience, having contributed to major financial institutions and publications such as Westpac, Money Magazine, and Yahoo Finance. She is frequently quoted in media outlets like SmartCompany and SBS, offering expert insights on superannuation and money management. Alison holds a Bachelor of Communications in Public Relations and Journalism from the University of Newcastle, and has earned three ASIC RG146 certifications in superannuation, securities and managed investments and general financial advice, ensuring her expertise is fully aligned with ASIC standards. See full bio

Alison's expertise

Alison has written 651 Finder guides across topics including:

• Superannuation
• Savings accounts, bank accounts and term deposits
• Budgeting and money-saving hacks
• Managing the cost of living

Co-written by

Kylie Purcell

Investments Analyst

Kylie Purcell is an experienced investments analyst and finance journalist with over a decade of expertise in a wide range of financial products, including online trading platforms, robo-advisors, stocks, ETFs and cryptocurrencies. She is a sought-after commentator and regularly shares her insights on the AFR, Yahoo Finance, The Motley Fool, SBS and News.com.au. Kylie hosts the Investment Finder video series and actively contributes to the investment community as a judge and panellist. She holds a Master of Arts in International Journalism, a Graduate Diploma in Economics, and ASIC-recognised certifications in securities and managed investments. See full bio

Kylie's expertise

Kylie has written 173 Finder guides across topics including:

• Investment strategies
• Financial platforms
• Stockbrokers
• Robo advisors
• Exchange traded funds (ETFs)
• Ethical investing
• ASX stocks
• Stock and forex markets