How Much Super Do You Need to Retire in Australia?
"How much super do I need?" is the most common retirement question Australians ask — and the answer is frustratingly personal. It depends on when you want to retire, how much you plan to spend, whether you own your home, and whether you qualify for the Age Pension. This page gives you the benchmarks, the data, and a framework to find your own number. For a personalised projection, use the Super Planning tool.
ASFA Retirement Standard: the official benchmark
The Association of Superannuation Funds of Australia (ASFA) publishes quarterly benchmarks for retirement spending. These figures assume the retiree owns their home outright and is in reasonably good health. The two tiers — modest and comfortable — represent different lifestyle expectations.
| Lifestyle | Single (per year) | Couple (per year) |
|---|---|---|
| Modest | $32,666 | $47,113 |
| Comfortable | $51,630 | $72,663 |
A modest retirement covers basic living — essentials, some leisure, and infrequent travel. A comfortable retirement adds regular dining out, quality clothing, a reasonable car, private health insurance, and domestic and occasional international holidays. Both assume the retiree starts drawing at age 67 and lives to around 85-90.
ASFA estimates that to fund a comfortable retirement at age 67, a single person needs a super balance of around $595,000 and a couple needs around $690,000 (in addition to the Age Pension). These lump-sum targets are the most commonly cited benchmarks in Australian retirement planning.
Super balance needed at retirement by spending level
The ASFA figures are helpful, but your spending may not match their categories. The table below shows how much super you need at retirement based on your own annual drawdown, assuming a 4% withdrawal rate (25x multiplier). The "years at 5% return" column shows approximately how long the balance lasts if you draw the stated amount each year and earn a 5% nominal return on the remaining balance.
| Annual Spending | Super Needed (25x) | Years at 5% Return |
|---|---|---|
| $40,000 | $1,000,000 | 33+ |
| $50,000 | $1,250,000 | 33+ |
| $60,000 | $1,500,000 | 33+ |
| $70,000 | $1,750,000 | 33+ |
| $80,000 | $2,000,000 | 33+ |
| $100,000 | $2,500,000 | 33+ |
At a 4% withdrawal rate with a 5% return, the portfolio theoretically lasts indefinitely (you are withdrawing less than the return). In practice, inflation, market volatility, and sequence-of-returns risk mean the balance will eventually decline — but the 25x target gives strong longevity. If you receive Age Pension income on top of this, your drawdown rate from super can be lower, extending the balance further.
How much super does the average Australian have?
Understanding where you stand relative to the typical Australian can be motivating — or a useful reality check. The table below shows median super balances by age bracket, based on ATO data.
| Age Bracket | Median Super Balance | Gap to ASFA Comfortable (Single) |
|---|---|---|
| 25-34 | ~$30,000 | $565,000 |
| 35-44 | ~$80,000 | $515,000 |
| 45-54 | ~$150,000 | $445,000 |
| 55-64 | ~$200,000 | $395,000 |
The gap between median balances and the ASFA comfortable standard is large across every age group. Even in the 55-64 bracket, the median balance of $200,000 is well below the $595,000 target. This gap explains why the Age Pension remains critical for most Australian retirees — it fills the shortfall between what super provides and what a comfortable retirement costs.
If your balance is above the median for your age, you are ahead of most Australians. If it is below, the strategies in the section further down can help you close the gap.
How Age Pension reduces the amount you need
The Age Pension is available from age 67 and is means-tested against both income and assets. For those who qualify, it significantly reduces how much super you need to self-fund.
As of 2024-25, the maximum fortnightly Age Pension rates (including supplements) are approximately:
- Single: ~$28,514 per year ($1,096.70 per fortnight)
- Couple combined: ~$42,988 per year ($826.70 each per fortnight)
The assets test reduces the pension by $3 per fortnight for every $1,000 of assets above the lower threshold ($301,750 for a single homeowner, $451,500 for a couple homeowner). The income test reduces it by 50 cents for every dollar of income above $204 per fortnight for a single or $360 combined for a couple. Whichever test produces the lower pension amount applies.
For planning purposes, if you expect to receive the full Age Pension, you can reduce your annual self-funded requirement by the pension amount. A single person targeting $50,000 per year in retirement income only needs to self-fund $21,486 from super ($50,000 minus $28,514). At a 4% drawdown, that requires $537,000 in super rather than $1,250,000.
Worked example: couple with $500,000 in super at 65
Consider a couple, both aged 65, who own their home and have a combined super balance of $500,000. They want to live at the ASFA comfortable standard, which requires $72,663 per year.
At age 67, they become eligible for the Age Pension. With $500,000 in assessable assets (assuming all super has been converted to an account-based pension by then), the assets test reduces their pension. The lower threshold for a homeowner couple is $451,500, so they are $48,500 over. The reduction is $48,500 divided by $1,000, times $3 per fortnight, which equals approximately $3,783 per year. Their Age Pension is roughly $42,988 minus $3,783, equalling approximately $39,205 per year.
Drawing from super at a 5% rate on $500,000 provides $25,000 per year. Combined with the reduced pension of $39,205, total annual income is approximately $64,205. This is below the comfortable standard of $72,663, leaving a gap of about $8,450 per year.
To close this gap, the couple could: draw a higher percentage from super in the early years (accepting the balance will decline faster), earn part-time income before 67, or reduce their lifestyle expectations slightly. As their super balance declines, their Age Pension entitlement increases (lower assets means less reduction), creating a natural balancing effect. By their mid-70s, the full pension may compensate for the lower super drawdown.
How to close the gap if you are behind
If your super balance is below where you want it to be, several strategies can help:
- Salary sacrifice. Contributing pre-tax income to super is taxed at 15% instead of your marginal rate. For someone in the 30% bracket, every $10,000 salary sacrificed saves $1,500 in tax while boosting super by $8,500 (after 15% contributions tax). The total concessional cap for 2024-25 is $30,000, including employer contributions.
- Catch-up contributions. Since 2018-19, if your total super balance is under $500,000, you can carry forward unused concessional cap amounts from the previous five years. This allows lump-sum contributions well above the standard annual cap — useful after receiving a bonus, inheritance, or property sale proceeds.
- Consolidate funds. Many Australians have multiple super accounts from different employers, each charging separate fees. Consolidating into a single, low-fee fund eliminates duplicate insurance premiums and administration charges. Even saving $500 per year in fees compounds significantly over 20 years.
- Reduce fees and switch to index funds. High-fee actively managed super options erode returns over decades. A difference of 0.5% per year in fees on a $200,000 balance costs over $50,000 in foregone growth over 20 years. Low-cost index options within your super fund can substantially improve outcomes.
- Government co-contribution. If you earn under $58,445 and make a personal after-tax contribution, the government adds up to $500 to your super. This is free money for eligible lower-income earners.
Model your super growth
Enter your current super balance, contributions, and expected return to project your balance at retirement and model drawdown scenarios.
Use the Super Planning tool →Frequently asked questions
Is $500,000 enough super to retire on?
What is the average super balance at 60?
When can I access my super?
What are the minimum super drawdown rates?
Does my home count towards the assets test for Age Pension?
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