The Association of Superannuation Funds of Australia (ASFA) has estimated how much may be needed for a ‘modest’ and ‘comfortable’ retirement.
To support a ‘modest’ lifestyle in retirement, ASFA estimates that singles would need an income of around $27,646 p.a. and couples around $39,848 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 $43,255 p.a. and couples around $61,061 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, opens in a new window.
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%View disclaimer1 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, opens in new window.
Any advice and information on this website is general only, and has been prepared without taking into account your particular circumstances and needs. Before acting on any advice on this website you should assess or seek advice on whether it is appropriate for your needs, financial situation and investment objectives.
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.