How much super do you need to retire comfortably, clearly.
It depends on whether you own your home, what pension you’ll get, and how you want to live. The actual numbers are below. Your number will be different from the benchmarks.
You are not alone. A recent survey found that 21% of Australians say they will worry about retirement later, and 19% admit they have no idea where to start. Meanwhile, headlines regularly declare that you need $1 million in super to retire comfortably. The reality is far more nuanced, and for many Australians, the number is lower than you might expect.
This guide breaks down the latest retirement benchmarks, explains how the age pension interacts with your super, and outlines practical steps you can take right now to strengthen your position.
What the Experts Say: 2026 Retirement Benchmarks
Two key organisations publish retirement income benchmarks in Australia, and they paint quite different pictures.
ASFA Retirement Standard (Updated February 2026)
The Association of Superannuation Funds of Australia (ASFA) estimates the annual income and lump sum super balance needed for either a modest or comfortable retirement. These figures assume you own your home outright and are in good health at age 67.
How much super? Three benchmarks, side by side
of a single retiree’s income comes from the Age Pension, at the medium spending level
Source: ASFA Retirement Standard, February 2026. Assumes homeownership and eligibility for a part Age Pension at age 67.
A comfortable retirement under ASFA includes top-level private health insurance, a newer car, regular dining out, domestic travel each year, and an overseas trip roughly every seven years.
Super Consumers Australia
Super Consumers Australia, a consumer advocacy group, takes a different approach. Rather than describing an aspirational lifestyle, they base their numbers on what Australian retirees spend, using Bureau of Statistics data.
Their finding sits well below ASFA’s comfortable number: a single homeowner retiree spending at a medium level needs much less in super than the comfortable benchmark suggests, with the couple figure higher again. The figure above sets the two approaches side by side.
The Age Pension Does a Lot of Heavy Lifting
Many Australians underestimate how much the age pension contributes to retirement income. As of March 2026, the full age pension pays approximately:
At the medium spending level estimated by Super Consumers Australia, roughly 67% of a single retiree’s income comes from the age pension. Your super supplements the pension rather than replacing it entirely.
However, eligibility depends on both income and asset tests. If your combined assessable assets (excluding your home) exceed approximately $722,000 as a single homeowner or $1,085,000 as a couple, you will generally not qualify for any pension in 2026.
This is where professional advice becomes critical. Small differences in how you structure your assets, the timing of your retirement, and how you draw down your super can mean thousands of dollars a year in pension entitlements.
Why the Number Keeps Getting Bigger
Several factors are pushing recommended super balances higher than they were even five years ago.
Longer life expectancy. Australians retiring at 67 may need income for 25 to 30 years. Compared with a few decades ago, people are less likely to die in their 60s and 70s and more likely to live well into their 80s and 90s.
Rising living costs. The costs that hit retirees hardest, including insurance, utilities, council rates, healthcare, and groceries, have been rising faster than general inflation. The age pension is indexed to CPI, but retiree-specific costs have outpaced it.
Higher deeming rates. Recent increases to deeming rates mean your assessed income can rise even if your actual investment returns have not changed. This can reduce your age pension entitlement without your circumstances changing at all.
Housing uncertainty. All major benchmarks assume you own your home outright. Research shows the share of Australians aged 55 to 64 still carrying mortgage debt has tripled since 1990. If you are renting or carry a mortgage into retirement, you will need significantly more.
Where Do Real Australians Stand?
The latest data from the Australian Prudential Regulation Authority shows that average super balances for Australians approaching retirement are:
The gender super gap remains significant at approximately 25%, driven by the pay gap compounding over a working lifetime and career breaks. Women also live longer on average, meaning their savings need to stretch further.
If your balance is below the comfortable benchmark, that does not mean a good retirement is out of reach. It means having a clear strategy is essential.
See where your super could land.
A general projection in today’s dollars, using the ASIC MoneySmart standard assumptions. Move the sliders to fit your situation.
If your total super is under $500,000, unused cap from the past five years may let you contribute more.
Around 70% in growth assets like shares and property, with 30% in defensive assets like cash and bonds. The most common default setting for super.
Most super funds include some default life and disability cover, paid from your balance. MoneySmart assumes $521 a year. Turn it off to project without it.
Benchmarks assume you own your home and receive a part Age Pension.
How this is worked out · assumptions
- Investment return by option, net of investment fees and tax: Cash 3.7%, Conservative 5.0%, Moderate 5.8%, Balanced 6.2%, Growth 6.6%, High growth 7.0% per year.
- Employer contributions at the 12% Superannuation Guarantee rate, taxed at 15% going in. Extra before-tax contributions are also taxed at 15%.
- Administration fees of $59 per year plus 0.08% of your balance. Default insurance of $521 per year when switched on.
- Results are adjusted to today’s dollars using 2.5% for the rising cost of living and a further 1.2% for rising living standards.
- Benchmarks: ASFA Retirement Standard comfortable lump sums (February 2026), $630,000 single and $730,000 couple, and the Super Consumers medium single figure of $322,000. All assume you own your home and receive a part Age Pension.
This is the average maths. Your real number depends on your situation.
Work it out with George Call 07 3290 0393 First meeting free. No obligation.Practical Steps You Can Take Now
Six things worth doing before the next financial year closes.
- Get clear on your actual spending.
Forget the headlines. Map out what you spend now, remove work-related costs, and think about what retirement looks like for you specifically. The free MoneySmart Retirement Planner is a useful starting point.
- Check your super balance and consolidate.
If you have multiple super accounts, you may be paying multiple sets of fees and insurance premiums. Use your myGov account to find and consolidate lost super.
- Maximise your contributions before 30 June.
The concessional contributions cap for 2025/26 is $30,000. If you have unused cap amounts from previous years and your total super balance is under $500,000, you may be able to carry forward and contribute more. Unused amounts from 2020/21 expire permanently on 30 June 2026.
- Understand how the age pension interacts with your super.
The difference between a full pension, a part pension, and no pension can be tens of thousands of dollars a year. Asset structuring, when you start drawing super, and whether you use an account-based pension all affect your entitlements.
- Consider your housing situation.
If you still have a mortgage, factor repayments into your retirement budget. If you are considering downsizing, the downsizer contribution allows up to $300,000 per person from the sale of your home into super, regardless of balance or age (provided you are 55 or older).
- Talk to a financial adviser.
A personalised retirement plan is worth more than any benchmark. The right strategy can mean the difference between a modest retirement and a comfortable one, even if your super balance stays the same.
There is no single number that works for everyone. A homeowning couple with $730,000 in super and a well-structured drawdown strategy will likely live very comfortably. A single renter with $400,000 faces different challenges that require different solutions.
What matters most is not where you are today, but whether you have a plan to make the most of what you have.
Common questions
How much super do I need to retire comfortably in Australia?
ASFA’s February 2026 standard says about $630,000 for a single homeowner and $730,000 for a couple, both assuming you’ll get a part Age Pension. If you do not own your home, you will need significantly more, in the order of $300,000 extra to cover rent. Your actual number depends on what comfortable looks like for you.
Can I retire on $500,000 in super?
Yes, if you own your home and qualify for at least a part Age Pension. The combination of $500,000 in super and a top-up pension can produce around $50,000 to $55,000 a year for a couple. It gets tighter for singles or non-homeowners.
Is $1 million in super enough to retire?
For most Australians, yes, comfortably. $1 million invested in a balanced pension can generate roughly $50,000 to $60,000 a year over a 25-year horizon. You will often still qualify for a small part pension if your other assets are modest.
Should I include my home in my retirement savings?
For lifestyle calculations, no. Your home is where you live, not income. But it is exempt from the Age Pension assets test, which matters. Whether to downsize and free up capital is a separate question that depends on your situation.
How much super does the average 60-year-old Australian have?
Around $400,000 for men and $300,000 for women, based on APRA data as at June 2025. That is well below the ASFA comfortable benchmark, which is why the Age Pension still plays a major role for most retirees.
General Advice Warning: This article contains general information only and does not take into account your individual objectives, financial situation, or needs. Before making any financial decisions, you should consider whether the information is appropriate for your circumstances and seek personal financial advice from a licensed adviser. Great Advice Financial Advisers is a Corporate Authorised Representative of Akumin Financial Planning Pty Ltd (AFSL 232706).
