Estimating how much you need to retire in Australia depends on your desired lifestyle, housing situation, and whether you own your home. Broadly, Australian guidance centers on ASFA’s Retirement Standard, which provides benchmark annual budgets for modest and comfortable retirements for both singles and couples. Here’s a concise framework to help you gauge your target savings. Direct answer

• A common target widely used by financial planners is to accumulate enough super and other assets to fund a comfortable retirement for a typical couple, or a modest retirement for a single, based on ASFA benchmarks. As of recent quarters, ASFA estimates for retirees aged 65–84 indicate:
  • Comfortable lifestyle: around $75,000 per year for couples, and about $53,000 per year for singles (before tax). This corresponds to total savings in the hundreds of thousands to over a million, depending on investment returns, age at retirement, and other income streams. Note that renting vs owning a home and health status can shift these numbers significantly.

• For a more direct target, many people use:
  • Modest retirement: roughly $34,000–$35,000 per year for couples or about $33,000 per year for a single, depending on whether home ownership is assumed.

* Comfortable retirement (homeowners): typically around $75,000 per year for couples or around $53,000 per year for singles.

• In dollar terms for retirement savings, ASFA’s standards (as of mid-2025) suggest:
  • Modest retirement (including some age pension support): roughly $100,000 for singles or about $150,000–$200,000 for couples, if relying mainly on super plus some pension. These figures vary with assumptions about home equity and pension eligibility.

* Comfortable retirement (no mortgage, healthy):
  * Singles: around $430,000–$595,000 in super and saved assets (depending on age and pension support).

  * Couples: around $690,000 or more in combined super and non-super assets, again under favorable health and housing assumptions.

Key considerations

• Housing: Home ownership dramatically affects required savings. If you own your home outright, you’ll need less (or can maintain a similar standard with less annual drawdown). Renting increases annual budget needs and often raises the required nest egg.

• Age and life expectancy: The longer the retirement horizon, the more you need to fund, unless you expect higher returns or pension support. Planning often centers on ages 65–84 as a typical window for ASFA benchmarks.

• Pension and other income: The Age Pension can fill a portion of the gap for eligible retirees, reducing the required personal savings. Eligibility varies by assets, income, and other factors.

• Health and lifestyle: A “comfortable” lifestyle implies broad participation in leisure, travel, and activities. A “modest” lifestyle emphasizes essentials with limited extras. Use these as guiding targets rather than exact numbers.

Practical steps

• Use ASFA Retirement Standard as your baseline for budgeting: determine your preferred lifestyle (modest vs comfortable) and housing status (owner vs renter), then translate that into annual income needs.

• Estimate total retirement savings needed by age 65 (or your planned retirement age) by applying a sustainable withdrawal rate (commonly around 3–4% in many plans, adjusted for taxes and longevity). This helps translate annual needs into a target nest egg.

• Run personalized scenarios with a financial planner or a calculator from MoneySmart or ASFA to incorporate current super balances, expected contributions, investment returns, and pension eligibility.

If you’d like, share:

• Your planned retirement age and current super balance
• Whether you own your home or plan to rent
• Target retirement lifestyle (modest or comfortable)
• Any expected other income (pension, rental income, etc.)

I can then tailor a step-by-step savings target and withdrawal plan for your situation.