How Much Do You Actually Need to Retire Comfortably in Australia?

One of the most common questions I hear from clients in their fifties is this: “Vineet, how much do I actually need?”

Not a rough guess. Not a number they saw on a forum. A real, reliable benchmark they can plan around.

The good news is that benchmark exists — and it’s updated every quarter to keep pace with the actual cost of living.

The ASFA Retirement Standard

The figures used throughout this article come from the ASFA Retirement Standard, published by the Association of Superannuation Funds of Australia (ASFA). First established in 2004, the Standard provides independently researched annual budget benchmarks for retirees across two lifestyle levels — modest and comfortable — for both singles and couples. It is updated quarterly in line with movements in the Consumer Price Index (CPI).

You can access the full Standard directly at www.superannuation.asn.au.

The figures quoted in this article reflect the March 2026 quarter release.

Modest vs Comfortable — What’s the Difference?

Before we get to the numbers, it helps to understand what ASFA actually means by these two terms.

A modest retirement is defined as better than living on the Age Pension alone, but still fairly basic. Think an older, more basic car, limited meals out, budget haircuts, and keeping a close eye on every utility bill. There is little room for unexpected expenses.

A comfortable retirement is meaningfully different. It allows for top-level private health insurance with low gap payments, a reasonable and reliable car, regular dining out, domestic holidays every year, and an overseas trip roughly once every seven years. It also means being able to run the air conditioning without worrying about the power bill — something that sounds small but matters a great deal as people get older.

Both budgets assume the retiree owns their home outright and is in reasonable health.

The Numbers: What Does Retirement Actually Cost?

As of the March 2026 quarter, ASFA estimates the following annual budgets for retirees aged 65 to 84:

For those renting privately in retirement rather than owning their home, ASFA publishes a separate modest-lifestyle budget that accounts for rent costs after Rent Allowance:

The gap between the homeowner and renter figures is significant — and it reinforces one of the most important planning observations I share with clients: your housing situation at retirement changes your income requirement more than almost anything else.

Where Does the Money Go?

It is worth understanding what drives these budget figures, because some categories are rising noticeably faster than general inflation right now.

Groceries are the single largest weekly expense in the comfortable couple’s budget at around $266 per week. Food inflation has been running at approximately 3% per year, compounding on top of sharper rises seen in prior years.

Health costs are the category to watch most closely. The comfortable couple budget allocates around $230 per week to health — covering private health insurance, chemist costs, and specialist gap payments. Private health insurance premiums rose by an average of 4.4% in 2026, the largest increase in nearly a decade, while medical and hospital service costs also rose around 5% over the past financial year. Health expenditure tends to increase, not decrease, as people move through retirement.

Electricity and gas are budgeted at around $75 per week for a comfortable couple — but electricity prices rose over 25% in the past year as government rebates rolled off. This is one of the most significant cost pressures on fixed retirement incomes right now.

Transport sits at around $210 per week for a comfortable couple and has been volatile due to fuel price movements.

These trends are exactly why the ASFA Retirement Standard updates quarterly rather than annually. A retirement budget figure from two years ago is genuinely out of date.

How Much Super Do You Need?

Annual income is only part of the picture. The other question is: what lump sum do you need at retirement to fund it?

ASFA’s modelling assumes retirees draw down their capital over their retirement years and receive at least a part Age Pension. The estimates below assume home ownership.

For those renting privately and targeting a modest lifestyle, the required savings are higher — around $385,000 for a couple and $340,000 for a single person — because more capital is needed to cover ongoing housing costs.

The contrast between the modest and comfortable figures is worth pausing on. For a couple, the difference between a modest and comfortable retirement is roughly $610,000 in additional savings. That gap represents better health cover, more flexibility, more travel, and the financial confidence to say yes without hesitation.

The Role of the Age Pension

The lump sum figures above are not based on funding retirement from super alone. They account for the Age Pension as part of the income mix.

As of 2026, the maximum Age Pension is approximately $31,000 per year for a single person and around $47,000 per year combined for a couple. It is adjusted twice a year — in March and September — by either CPI or wages growth, whichever is higher.

The Age Pension is a meaningful and valuable income source for most Australians. But it is worth being clear about what it does and does not do: it supports a modest lifestyle. It does not, on its own, bridge the gap to a comfortable one. Superannuation is what provides that bridge.

A Starting Point, Not the Whole Picture

The ASFA Retirement Standard is an excellent reference point. But it is a national average benchmark, not a personal financial plan.

Your own retirement income requirement will depend on your health, your housing situation, whether you retire as a couple or single, your actual spending patterns, and what you want retirement to look and feel like. It will also shift over time as costs move — which is why ongoing planning matters, not just a number set once and never revisited.

Speak to a Financial Adviser

If you would like to understand how these benchmarks apply to your specific situation — including your superannuation balance, your likely Age Pension entitlement, and a realistic income plan for your retirement — we work through exactly these questions with clients every day.

Request a meeting with Vineet Singh CFP® at astonia.com.au 

This article is general in nature and does not constitute personal financial advice. The figures referenced are sourced from the ASFA Retirement Standard, March quarter 2026, published by the Association of Superannuation Funds of Australia. Readers should seek advice specific to their own circumstances from a licensed financial adviser before making any financial decisions. Astonia Private Wealth is authorised under GPS Wealth Ltd (AFSL 254544).

Sources

1. Association of Superannuation Funds of Australia (ASFA). ASFA Retirement Standard, March Quarter 2026. ASFA Research and Resource Centre, Sydney. Available at: www.superannuation.asn.au/consumers/retirement-standard
2. Services Australia. Age Pension — How much you can get, current from 20 March 2026. Australian Government. Available at: www.servicesaustralia.gov.au/how-much-age-pension-you-can-get