How much do I need to retire on?
While it’s common to hear people need $1 million in super, it’s just not true for everyone.
The ‘right number’ for you will depend on your expectations in retirement – which means it’s going to be different for each person.
You can start by looking at your own numbers, using our calculators
What kind of lifestyle do you want?
The Association of Superannuation Funds of Australia (ASFA) states (as at March 2023) that a couple needs $70,482 a year for a comfortable lifestyle. For a single it’s $50,004 per year. They equate this to a couple having $690,000 in superannuation savings at age 67 or a single person having $595,000 (The ASFA Retirement Standard methodology was last reviewed in April 2018 and figures are updated quarterly to reflect changes to the Consumer Price Index). If you want to read more about what they define as comfortable, you can read all the details here.
One way to make this more specific for you is to review your current income and expenses. While some of your circumstances may change in retirement, your current financial situation can be a useful guide to how you’ll want to keep living.
Can you estimate how long you will be retired?
Your weekend could last more than 20 years - it's worth thinking about just how long you will be retired.
- Our calculator will help you estimate your life expectancy - plan that you will live longer than the average, when calculating your retirement needs.
- Consider whether you would like to continue working in some capacity - maybe you don't want a full retirement straight away.
What other income is available to you?
Super is one part of your financial picture. Consider other assets, such as property, investments, savings and any inheritance you may receive. And don’t forget to check your eligibility for the Age Pension.
So how do you work out what you need?
Here are some quick ways to make an estimate:
- Use the ASFA data above: $595,000 for a single or $690,000 for a couple (as at March 2023).
- smartMonday has both a retirement budget planner and a modelling calculator available to help you.
- Knowing your current expenses, and looking at what will change is a good way to begin planning.