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One million dollars? $73,000 a year? Just the minimum drawdown? With so many figures flying around, it’s no wonder retirement planning can feel like a moving target.

We’ve all seen the numbers pinned to achieving a comfortable retirement. And while there’s no single number that works for everyone, there are some helpful guidelines and principles to consider when you’re working out what you’ll need for your goals and your circumstances.

More than half of Australians over 50 don’t believe they’ll achieve a comfortable retirement, but that doesn’t mean it really is out of reach.1 The good news is that many of us may already be closer than we think, and are overestimating what we need. 

Whether you want to travel the world or just enjoy a coffee at your local café each week, the key is understanding what “comfortable” really means for you and making your super work for the life you want. 

The reality check: expectations vs spending habits

Australians could be overestimating how much they’ll need in retirement. Many believe they’ll need $823,000 or more in savings to feel “comfortable,” but official guidance from the Association of Superannuation Funds of Australia (ASFA) puts the benchmark lower: around $690,000 for a couple and $595,000 for a single homeowner.

Still, people are naturally cautious. Research shows that around half of retirees draw only the minimum from their super, and 65% of balances go unspent by average life expectancy.

So how do you know what you need?

There’s no one right number but there are a few key factors to consider when figuring out what retirement income might suit you.

Your ideal retirement amount depends on:

  • Your total savings: How much do you have across super and other investments? 

  • Your retirement income goals: Are you aiming for $45,000 a year or $75,000?

  • The lifestyle you want: Basic comforts, or regular travel and luxury experiences?

  • Home ownership: Owning your home outright can significantly lower your income needs.

  • Pre-tax vs post-tax: ASFA household budgets are calculated in pre-tax dollars — if you're drawing from a tax-free pension account, you may need less than you think. 

  • How much you’d like to leave as a legacy: Understanding inheritance and what you’re willing to sacrifice for that.

How much you need is totally up to you

How much you need for retirement all depends on what your priorities for your retirement are. Some people aim to preserve their super for as long as possible (or as a legacy), sticking to the minimum drawdown rates. Others are focused on financial security, drawing a little more but still being cautious. Many simply want to maintain the lifestyle they’re used to, while others plan to “live it up” with travel, hobbies and more frequent spending. Each of these choices comes with a different price tag.

ASFA defines a comfortable retirement as one where you can enjoy a good standard of living covering all the basics like groceries, energy bills and healthcare, plus extras like private health insurance, regular leisure activities, and the occasional holiday. 

For a single retiree aged 65–84, that works out to about $51,805 a year, or $73,077 for a couple. It assumes that you own your own home, free and clear. 

By contrast, a modest retirement supports a more frugal lifestyle covering essential needs but with fewer luxuries. Think home-cooked meals, limited travel and a tighter budget for things like entertainment. The estimated annual cost? Around $32,897 for singles and $47,470 for couples.

Explainer: the 70/30 rule

The 70/30 rule is a general guideline suggesting you’ll need about 70% of your pre-retirement income to maintain your lifestyle in retirement. Why less? You’re likely to spend less on commuting, work expenses and mortgage repayments. That said, this is just a starting point, and it won’t suit everyone.

If you earned $100,000 pre-retirement, 70/30 suggests you may need around $70,000 per year in retirement. But if you plan to travel or support family, you might need more. If you’re comfortable living modestly, you might need less.

The key to a successful retirement: Planning 

Whether your priority is peace of mind, living it up, or leaving a legacy the most important step is to get clear on your own goals.

Use the general guidelines as a launchpad, but take the time to look at your personal circumstances. How much do you really need each year? How much do you want to spend? And how confident do you feel about using your super?

Ready to map your own path to retirement? 

Download our Retirement Guide and take the first step to a retirement that fits you.

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Next steps for deferred members

If you’re a SASS deferred member, knowing your options can help you make sure you have the funds to suit your retirement lifestyle.

Next steps

Where to next?

Ask an Expert: With all this market volatility, should I switch my investment to cash? >

Retirement planning isn’t just about money — it’s about time too >

What happens to my SASS benefit if I don’t choose when I retire?  >

Market review and outlook >

Back to Edition 20 >

Issued by Aware Financial Services Australia Limited (ABN 86 003 742 756, AFSL 238430); wholly owned by' Aware Super (ABN 53 226 460 365).

Past performance is not indicative of future performance.

General advice only. Consider if this is right for you having regard to your objectives, financial situation, or needs, which have not been accounted for in this information. Read the PDS and TMD before deciding to acquire, or continue to hold, any financial product. You should read the Financial Services Guide, before deciding about our financial planning services.

1 Colonial First State, Rethinking Retirement Report 2025