• Single person: roughly $54,000 to $59,000 per year
  • Couple: roughly $73,000 to $77,000 per year

One of the most common — and important — questions Australians ask as they approach retirement is:

“How much income will I need to live comfortably?”

The short answer is: it depends. But the good news is that there are well‑researched benchmarks that give you a realistic starting point, and from there you can tailor the numbers to suit your own lifestyle, location, and expectations.

This article explains the commonly quoted figures, what “comfortable” really means, how much super you may need, and how to calculate a more personal retirement income target.

The Short Answer: Comfortable Retirement Income Benchmarks

To live comfortably in retirement in Australia (in today’s dollars):

  • Single person: roughly $54,000 – $59,000 per year
  • Couple: roughly $73,000 – $77,000 per year

These figures assume:

  • You own your home outright
  • You have access to the Age Pension (full or part)
  • Your lifestyle includes modest travel and leisure
  • You are not supporting dependants

To support this level of income, estimated superannuation balances at retirement are approximately:

  • $595,000 for a single person
  • $690,000 for a couple (combined)

These are guides, not guarantees — and many retirees live comfortably on less, while others choose to spend significantly more.

Where Do These Numbers Come From?

The most widely used benchmark in Australia is the ASFA Retirement Standard, published by the Association of Superannuation Funds of Australia (ASFA).

ASFA regularly analyses the cost of living for retirees and estimates how much income is needed for different lifestyle levels, adjusting for inflation over time.

You can explore the latest ASFA figures here:

Retirement Standard

The Australian Government’s Moneysmart website also provides calculators and guidance to help Australians estimate how much super they may need:

https://moneysmart.gov.au/grow-your-super/how-much-super-should-i-have

What Does “Comfortable” Actually Mean?

A comfortable retirement is not extravagant, but it is far from bare‑bones. According to ASFA, it typically includes:

Housing

  • Owning your home outright
  • Ongoing maintenance and repairs
  • Council rates, utilities, insurance

Renting in retirement significantly increases required income and super balances.

Healthcare

  • Private health insurance
  • Regular GP and specialist visits
  • Dental, optical, and pharmaceuticals

Transport

  • Running a reliable car
  • Fuel, servicing, registration, insurance
  • Occasional public transport or rideshares

Food & Daily Living

  • Good quality groceries
  • Eating out occasionally
  • Household goods and services

Leisure & Lifestyle

  • Hobbies and interests
  • Streaming services, internet, phone
  • Social activities and gifts

Travel

  • Regular domestic travel
  • Occasional shorter international trips

This level of spending is designed to allow retirees to enjoy life, remain socially connected, and maintain independence.

Comfortable vs Modest Retirement

It’s also helpful to understand that “comfortable” is not the minimum.

ASFA defines two main lifestyle levels:

Modest Retirement

  • Covers basic living expenses
  • Limited leisure and travel
  • Little financial flexibility

Comfortable Retirement

  • Broader lifestyle choices
  • Regular social activities
  • Travel and discretionary spending
  • Ability to replace household goods and vehicles when needed

Many retirees aim for somewhere between modest and comfortable, depending on priorities.

How Much Super Do You Really Need?

The often‑quoted super balances ($595,000 single / $690,000 couple) assume:

  • Retirement around age 67
  • Partial or full Age Pension eligibility
  • Investment earnings continuing in retirement
  • Spending aligned with ASFA’s “comfortable” budget

However, your personal number may be higher or lower depending on:

  • Whether you own your home
  • How long you expect to live
  • Your health and insurance needs
  • Desired travel and leisure
  • Other income sources

There is no single magic number.

The Role of the Age Pension

For many Australians, the Age Pension remains a crucial part of retirement income.

Even a part pension can significantly reduce the amount of super you need, because it:

  • Is indexed to inflation
  • Is paid for life
  • Acts as a safety net if investments underperform

Eligibility depends on:

  • Age
  • Assets test
  • Income test

Understanding how your super and assets interact with the Age Pension is essential when planning.

How to Calculate Your Personal Retirement Income Need

Rather than relying solely on averages, it’s best to build a personalised estimate.

1. Define Your Retirement Lifestyle

Ask yourself:

  • How often do I want to travel?
  • Will I downsize or relocate?
  • Do I plan to help children or grandchildren?
  • What hobbies or activities matter most?

2. Estimate Your Expenses

Break costs into categories:

  • Housing
  • Food
  • Utilities
  • Transport
  • Health
  • Insurance
  • Leisure and travel

This exercise alone often provides clarity and confidence.

3. Factor in Other Income

Don’t forget potential income from:

  • Age Pension
  • Part‑time or casual work
  • Investment income
  • Rental income
  • Annuities

4. Use Reliable Calculators

Two excellent free tools are:

  • ASFA Retirement Standard (benchmarks)
  • Moneysmart Retirement Planner (personalised projections)

These tools allow you to test different scenarios and assumptions.

Location Matters More Than You Think

Where you live can dramatically affect retirement costs:

  • Capital cities vs regional areas
  • Coastal lifestyle premiums
  • State differences in rates, insurance, and healthcare access

Some retirees significantly reduce expenses by downsizing or relocating — others happily spend more to stay close to family.

Final Thoughts: Focus on the Life You Want

The most important takeaway is this:

There is no single “right” retirement income number.

The ASFA figures provide a valuable starting point, but your ideal retirement depends on your personal vision of comfort, freedom, and security.

Start with the benchmarks, use calculators, and then adjust for your own lifestyle, values, and priorities. With thoughtful planning, a comfortable and fulfilling retirement in Australia is achievable for far more people than many realise.

This article is general information only and does not constitute financial advice. For personalised advice, consider speaking with a licensed financial adviser.