How much will you need to retire comfortably?
How much will you need to retire comfortably?
Picture retirement like building your dream home. The Age Pension is your solid foundation, but it’s your superannuation and savings that build the walls and roof that make it truly liveable.
Recent figures from the Association of Superannuation Funds of Australia (ASFA) highlight how much you might need. A comfortable lifestyle, covering private health cover, regular outings, an annual holiday and staying connected with smartphones and NBN, now costs around $75,319 a year for a couple and $53,289 for a single person. Rising health and energy prices are pushing these costs up. A more modest lifestyle, focusing on the basics, comes in at about $49,992 for couples and $34,522 for singles.
To fund these lifestyles, ASFA estimates that at age 67 you’ll need about $690,000 in superannuation for a couple or $595,000 for a single. For a modest retirement, $100,000 is considered sufficient for either singles or couples. These estimates assume you own your home and will receive some Age Pension support.
The gap between the Age Pension and your dream lifestyle
The Age Pension provides a valuable safety net, but it won’t cover everything. From 20 September 2025, the full Age Pension pays $1,178.70 per fortnight for singles and $1,777.00 for couples. That’s roughly $30,600 a year for singles and $46,200 a year for couples. Compare these numbers with the comfortable lifestyle budgets above and you’ll see why building your super matters.
Think of John and Marie, both 65 and hoping to retire next year. They’ve paid off their mortgage and plan to travel interstate to see their grandchildren. Their super totals $400,000, which will provide an income of about $16,000 a year if they follow the standard 4 % drawdown rule. Adding the full Age Pension (around $46,200), their annual income would be about $62,200, well short of the $75,319 comfortable benchmark. To close that gap, they could boost their super with extra contributions before retirement, reconsider their travel plans or explore part‑time work.
Steps to build your retirement plan
Planning early puts you in control. Here’s how to get started:
Estimate your expenses: List what you’ll spend on essentials like housing, food and utilities, as well as hobbies, travel and health. Remember to account for digital connectivity costs; ASFA’s latest update includes budgeting for smartphones and NBN plans, around $58 per week for couples at the comfortable level and $45 per week at the modest level.
Know your income sources: Check your super balance and project how much it will provide each year. Include the Age Pension and any other income, such as casual work or investments.
Identify any shortfall: If your projected income falls short of your desired lifestyle, consider:
Making extra contributions (salary sacrifice or personal contributions) while you’re still working.
Reviewing your investment strategy to ensure it balances growth and security.
Downsizing or relocating to free up equity.
Adjusting your retirement goals, perhaps scaling back travel plans or delaying retirement by a year or two.
Review regularly: Budgets and super rules change. Rates for the Age Pension and superannuation guarantee contributions are indexed over time, so revisit your plan at least annually.
Bridging the gap with Face Up Life
At Face Up Life we believe retirement should be about choice and joy, not fear and confusion. Our role is to help you:
Clarify your goals and timeline.
Project your income with and without the Age Pension.
Explore strategies to maximise your pension entitlements.
Make confident decisions about your retirement funding.
Imagine waking up on your first day of retirement feeling secure, knowing you’ve built a future that supports the life you want. Book your free initial call today and let’s bridge the gap between where you are and where you want to be.
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