How Much Does a Couple Need to Retire Comfortably in Australia?
It’s one of the most common questions we hear: “How much do we actually need to retire?”
And the honest answer? It depends.
I know that’s frustrating to hear, but retirement isn’t one-size-fits-all. What you need depends on the lifestyle you want, when you plan to retire, how long you’ll live, and what you already have in place.
That said, let’s break down some realistic numbers and give you a framework to work with.
The ASFA Retirement Standard: A Starting Point
The Association of Superannuation Funds of Australia (ASFA) publishes a helpful benchmark called the Retirement Standard. As of late 2024, here’s what they estimate:
For a couple retiring at 67:
- Comfortable retirement: $76,505 per year (September 2025)
- Modest retirement: $50,866 per year (September 2025)
What does “comfortable” actually mean?
A comfortable retirement means you can afford:
- Regular dining out and entertainment
- Domestic and occasional international travel
- A reasonable car
- Private health insurance
- Home maintenance and improvements
- Hobbies and leisure activities
It’s not lavish—it’s a good quality of life without constant money stress.
What about “modest”?
A modest retirement covers the basics:
- Essential bills and groceries
- Occasional dining out
- Minimal travel (mostly domestic)
- Basic healthcare
- Limited discretionary spending
It’s manageable, but you’ll be watching your budget carefully.
How Much Super Do You Need?
To fund a comfortable retirement, ASFA estimates a couple needs around $690,000 in superannuation (September 2025) (combined) at age 67, assuming you’ll also receive a part Age Pension.
For a modest retirement, you’d need around $100,000 (combined).
These figures assume:
- You own your home outright (no mortgage)
- You retire at 67
- You draw down your super over your lifetime
- You receive at least a part Age Pension
If you don’t own your home or want to retire earlier, these numbers increase significantly.
The Age Pension: What You Can Expect
The Age Pension provides a safety net, but it’s not generous.
As of 2025 (September), the maximum Age Pension for a couple is around $46,000 per year (combined). That’s roughly in line with a modest retirement, but well below a comfortable retirement.
However, many couples won’t receive the full pension because:
- Their combined assets exceed the threshold (around $481,500 for homeowners (September 2025).
The Age Pension uses strict asset and income tests, so if you have significant super or investments, your entitlement reduces or disappears entirely.
Bottom line: Don’t rely solely on the Age Pension to fund the retirement you want.
What If You Want to Retire Earlier or have more income and flexibility in retirement?
Retiring at 60 or 65 instead of 67 or earlier changes everything.
You’ll need more money because:
- You’re funding more years without income
- You can’t access the Age Pension until 67
- Your super has less time to grow
A rough rule of thumb: to be completely self funded without relying on the government you need around a capital base that could generate around 5% – 7% of earnings per year.
So if you want to retire at 60 with a comfortable lifestyle but want $100,000 per annum, you might need closer to $1,400,000 – $2,000,000 (combined) to bridge the gap until the Age Pension kicks in, if at all you are eligible.
The Big Variables That Change Your Number
- Home ownership
If you’re still paying rent in retirement, add at least $30,000-$50,000 per year to your budget. That means you’d need significantly more in super—potentially an extra $400,000-$500,000.
- Health costs
Private health insurance, medications, aged care—these can add up. Budget at least $5,000-$10,000 per year for a couple.
- Lifestyle expectations
Want to travel extensively? Maintain a boat? Support adult children or grandchildren? Your number goes up.
Prefer a quiet life at home with minimal spending? Your number might be lower than ASFA’s estimates.
- Longevity
Australians are living longer. A 67-year-old couple today can reasonably expect one partner to live into their 90s.
That’s 25-30 years of retirement to fund. Running out of money at 85 isn’t an option.
- Inflation
The cost of living doesn’t stop rising in retirement. What costs $100,000 today might cost $164,000+ in 20 years.
Your retirement plan needs to account for this.
So What’s Your Number?
Here’s a simple exercise to get started:
Step 1: Estimate your annual retirement expenses
- Think about your current spending, minus work costs (commuting, lunches, work clothes)
- Add in what you want to do (travel, hobbies, leisure)
- Don’t forget one-off costs (car replacement, home maintenance)
Step 2: Subtract guaranteed income
- Age Pension (if eligible)
- Any other pensions or annuities
Step 3: Calculate the gap
- What’s left is what your super and investments need to cover
Step 4: Divide annual income by between 4% – 7%
- This gives you a rough target for how much you need saved (assuming a 5%-7% withdrawal rate.
Example 1: Partial Age Pension
- Annual expenses: $75,000
- Part Age Pension: $20,000
- Gap to fund: $55,000
- Savings needed: $55,000 /5% = $1,100,000
Example 2: Fully Self Funded
- Annual expenses: $100,000
- Part Age Pension: $0
- Gap to fund: $100,000
- Savings needed: $100,000 / 5% = $2,000,000 or $1,428,000 if assuming a 7% return
This is a simplified approach, but it gives you a ballpark figure.
What If You’re Behind?
If you’ve run the numbers and you’re not where you need to be, don’t panic. You have options:
- Increase super contributions
- Salary sacrifice more into super (pre-tax dollars)
- Make after-tax contributions if you have surplus cash
- Take advantage of catch-up contributions if you’re eligible
- Work longer
- Even 2-3 extra years makes a massive difference
- Your super keeps growing and you’re not drawing it down
- Downsize or relocate
- Moving to a cheaper area or smaller home can free up capital
- Downsizer contributions (if over 55) can boost your super
- Adjust expectations
- Retire later, spend less, or find part-time work in retirement
- Many retirees find fulfillment (and income) in casual or consulting work
- Get professional advice
- A financial planner can model different scenarios and help you bridge the gap
The Real Answer
So how much does a couple need to retire in Australia?
For most couples aiming for a comfortable retirement:
- $700,000 – $1 million in combined super (if you own your home and retire at 67)
- $1 million+ if you want to retire earlier or have higher lifestyle expectations
- $1.5 million+ if you don’t own your home outright
But your number might be different.
The point isn’t to hit some arbitrary target it’s to understand what you need for the retirement you want, and then work backwards to make it happen.
Where to Start
If you’re not sure where you stand or what you need to do:
- Check your super balance – Log into your super account and see where you’re at
- Estimate your retirement expenses – Be realistic about what you’ll actually spend
- Understand your Age Pension entitlement – Use the government’s online calculator
- Run the numbers – Work out if there’s a gap and how big it is
- Get advice – A financial planner can help you create a clear plan to get there
Retirement planning isn’t about perfection. It’s about having a plan, starting early, and adjusting as you go.
And if you’re reading this thinking “I should have started this years ago” the second best time to start is now.
Want help figuring out your retirement number and whether you are on track?
We work with couples across Brisbane, Gold Coast, South East Queensland and Australia wide to create realistic, personalised retirement plans. Whether you’re decades away or retiring next year, we can help you understand where you stand and what you need to do.
Book a consultation or get in touch let’s work it out together.
