How much do you really need to retire?
It's the question almost everyone asks as retirement comes into view: how much is enough? The honest answer is that it depends on the life you want to live — but you don't have to start from nothing. There's a widely used national benchmark that gives you a realistic, dollar-figure starting point, and for a lot of people the number is lower than they fear. Here's the plain-language version.
The benchmark: the ASFA Retirement Standard
The Association of Superannuation Funds of Australia (ASFA) publishes the Retirement Standard — an estimate, updated each quarter, of what it costs to fund a "comfortable" or a "modest" lifestyle in retirement. It has been running for around 20 years and is one of the most quoted yardsticks in the country, used by everyone from super funds to the government's Moneysmart website.
It splits retirees into two lifestyles. A comfortable retirement covers private health insurance, a reasonable car, good food, household updates, and regular leisure and travel. A modest retirement covers the basics comfortably — better than the Age Pension alone, but with fewer extras.
What it costs each year
Here's what ASFA estimates you'd need to spend each year, based on the most recent figures (March quarter 2026):
| Household | Comfortable | Modest |
|---|---|---|
| Single | $55,923 a year | $36,434 a year |
| Couple | $78,566 a year | $52,473 a year |
These figures assume you own your home outright and are in reasonably good health. They're the spending targets — not the amount you need to have saved.
What you'd need to have saved
This is where many people are pleasantly surprised. ASFA estimates the super balance needed at age 67 to fund each lifestyle — and crucially, these figures already factor in the Age Pension topping up your income along the way:
| Lump sum at 67 | Comfortable | Modest |
|---|---|---|
| Single | $630,000 | $110,000 |
| Couple | $730,000 | $120,000 |
Two things jump out. First, a comfortable retirement for a couple needs a combined $730,000 — not $730,000 each. Second, at the modest level the figure is almost the same for singles and couples, and far lower than people expect. That's the Age Pension doing the heavy lifting: for a modest lifestyle, most of your income comes from the pension, so only a relatively small amount of savings is needed to bridge the gap.
The assumptions that matter
A benchmark is only as useful as the fine print behind it. The ASFA figures assume that you:
- Own your home outright — rent or a remaining mortgage changes the picture significantly.
- Retire at age 67 and draw down your savings over your lifetime, to around age 85.
- Receive a part or full Age Pension as your balance reduces over time.
- Are in reasonably good health, with everyday medical costs but no major aged-care expenses.
The lump-sum figures are expressed in today's dollars and assume your savings keep earning a return through retirement. They're a national average, not a personal calculation — which is exactly why they're a useful starting point rather than a finish line.
Why your number is your own
The Standard answers "what does the average comfortable retirement cost?" It can't answer "what do I need?" — because that depends on things a national average can't see: whether you still have a mortgage, when you actually want to stop work, how long you might need your money to last, whether you plan to travel heavily early on, and what you'd like to leave behind. Two people with the same balance can have very different retirements.
It's also worth remembering the benchmark cuts both ways. If your spending plans are simpler than "comfortable," you may need less than the headline figure. If you want to travel often or retire before 67, you'll likely need more. The value isn't in matching the national number — it's in working out yours.
The bottom line
The ASFA Retirement Standard is a reassuring place to start. For many Australians, a comfortable retirement is more achievable than the headlines suggest — especially once the Age Pension is factored in. But it's a guide, not a plan. The real work is turning a national average into a number that fits your home, your health, your timing and the life you actually want.
At Compass, that's exactly what we do: take the big, daunting question of "how much do I need?" and turn it into a clear, personal answer. If you'd like to know what your number looks like, a short conversation is a good first step.
General information only — not personal financial advice. It doesn't consider your objectives, situation or needs. Consider whether it's right for you and seek advice before acting.
Jason Bell and Compass Retirement and Aged Care are Authorised Representatives of Millennium3 Financial Services Pty Ltd (AFSL 244252).
Source: Association of Superannuation Funds of Australia (ASFA), Retirement Standard, March quarter 2026. https://www.superannuation.asn.au/consumers/retirement-standard/
