Redefining a 'comfortable' retirement
How much do you think you need to live after you leave work?
Australians now need about $78,566 a year for a couple and $55,923 for a single person to enjoy a “comfortable” retirement, according to the latest Retirement Standard from the Association of Superannuation Funds of Australia (ASFA).
These figures, updated in mid‑2026, are widely used as the benchmark for what it takes to maintain a good standard of living after leaving the workforce.
They assume retirees own their home outright and are in relatively good health, with spending designed to support an active and engaged lifestyle rather than just the basics.
A “comfortable” retirement, as defined by ASFA, goes well beyond meeting essential costs. It includes private health insurance, regular leisure activities, reliable transport, and the ability to replace household items when needed.
Retirees at this level can afford occasional dining out, domestic travel, and even periodic overseas holidays, while maintaining financial security and independence.
By contrast, a “modest” retirement, costing about $52,473 a year for couples and $36,434 for singles, covers only basic living expenses with limited discretionary spending.
This lower benchmark relies more heavily on the Age Pension and involves tighter budgeting, fewer lifestyle choices, and less financial flexibility.
The gap between modest and comfortable retirement highlights the growing challenge facing Australians as living costs rise.
ASFA notes that expenses typically faced by retirees – such as food, energy, healthcare and insurance – have been increasing, putting additional pressure on retirement budgets.
To fund a comfortable lifestyle, ASFA estimates Australians retiring at around age 67 will need about $730,000 in superannuation for couples and $630,000 for singles, assuming they receive a part Age Pension.
These lump sum targets have climbed in recent years, reflecting higher living costs and the fact that the Age Pension alone is not enough to sustain a comfortable retirement.
Despite these rising figures, ASFA emphasises that retirement is typically less expensive than working life. Costs associated with employment disappear, many retirees pay little or no tax on superannuation income after 60, and concessions can help reduce everyday expenses.
Ultimately, the Retirement Standard serves as a planning tool rather than a one‑size‑fits‑all target. Individual needs vary based on lifestyle, health, housing, and personal goals.
Related reading: ASFA, MoneySmart
Photo by Paul T/Pexels
Disclaimer: This article and any links provided are for general information only and should not be taken as constituting professional advice. National Seniors Australia is not a financial adviser. You should consider seeking independent legal, financial, taxation, or other advice to check how any information provided relates to your unique circumstances.
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