Retirement Guide
Retirement planning in Australia. Made clearer.
How much you need, how super and the Age Pension fit together, and the practical steps that turn a good plan into a confident retirement.
Retirement in Australia has never been more flexible — or more complex. Superannuation rules, contribution caps, Age Pension thresholds and investment markets all shift over time. This guide brings the essentials together in one place, using the widely-cited ASFA Retirement Standard as a benchmark so you can pressure-test your own plan.
It is general information only and doesn't take your personal circumstances into account. If you'd like advice tailored to you, that's exactly what we do.
The big question
How much money do you actually need to retire?
The honest answer: it depends on the lifestyle you want, how long you'll live in retirement, whether you own your home, and how your money is invested. But a useful starting point is the ASFA Retirement Standard, published quarterly by the Association of Superannuation Funds of Australia.
The ASFA Retirement Standard, in one table
ASFA estimates the annual budget an Australian aged 65–84 needs to fund either a modest or comfortable lifestyle, assuming they own their home outright and are in relatively good health. Figures below are from ASFA's March 2026 quarter release.
| Lifestyle | Single (per year) | Couple (per year) | Lump sum at 67* |
|---|---|---|---|
| Modest | $36,434 | $52,473 | $110k / $120k† |
| Comfortable | $55,923 | $78,566 | $630k / $730k |
*Lump sums are ASFA's estimates for a single / couple, assuming drawdown of all capital alongside a part Age Pension, homeowner status, and an assumed investment earning rate of 6% p.a. †A modest lifestyle relies more heavily on the Age Pension, so the required super balance is far smaller. Source: ASFA Retirement Standard, March 2026 quarter.
Reality check
ASFA's numbers are a benchmark — not a prescription. If you plan to travel more, help adult children, replace a car every few years, or retire before 67, your target will be higher. Our retirement income calculator lets you model your own numbers.
Pillar one
Superannuation — the engine room
Super is the tax-advantaged wrapper Australians use to accumulate retirement savings. A few things worth knowing:
- The Superannuation Guarantee is 12% of ordinary time earnings from 1 July 2025.
- Concessional (pre-tax) contributions are capped at $30,000 in 2025–26, rising to $32,500 from 1 July 2026. Unused cap can be carried forward for up to 5 years if your total super balance is under $500,000.
- Non-concessional (after-tax) contributions are capped at $120,000 in 2025–26 (rising to $130,000 from 1 July 2026), and eligible members under 75 can bring forward up to 3 years' worth in a single year.
- The general transfer balance cap — the lifetime limit you can move into a tax-free retirement pension — is $2 million from 1 July 2025.
- You can generally access super from age 60 once you retire, or unconditionally from age 65.
- Investment mix, fees and insurance inside super all quietly compound over decades — small differences matter.
The power of compounding
A 40-year-old adding an extra $500 per month to super, earning 7% p.a. net of fees, could add roughly $390,000 to their balance by age 67. Not because $500 is a large sum — but because time is.
Model your superPillar two
The Age Pension — often the quiet co-pilot
The Age Pension isn't just for people with little super. Most Australian retirees will receive at least a part pension at some stage. Eligibility begins at age 67 and is subject to income, assets and residency tests. From 20 March 2026, the maximum fortnightly rate (including the Pension and Energy Supplements) is $1,200.90 for singles and $1,810.40 combined for couples — around $31,223 and $47,070 per year respectively.
Assets test
The full pension cuts out at higher asset thresholds — but your home isn't counted.
Income test
Deemed income from financial assets and any employment income can reduce your entitlement.
Concessions
Even a $1/fortnight part pension unlocks the Pensioner Concession Card and its benefits.
A practical framework
Five steps to a confident Australian retirement
01
Define your number
Decide the lifestyle you want in today's dollars. ASFA's Comfortable Standard is a fair starting anchor.
02
Audit what you have
Super balances, investments, property equity, debt, insurance. Consolidate where it makes sense.
03
Close the gap
Extra concessional contributions, debt reduction, salary sacrificing and smarter investment mix.
04
Plan the transition
Transition-to-retirement pensions, contribution timing, tax and Centrelink strategy.
05
Draw down with confidence
Structure your account-based pension, cash buffer and Age Pension interaction to last the distance.
Six retirement planning mistakes we see repeatedly
Leaving super on default for 30 years
The default option isn't wrong — it may just not fit your goals, timeframe or risk tolerance.
Underestimating longevity
A 65-year-old couple today has a good chance of one partner living into their 90s. Plan for a 25-30 year retirement.
Retiring too much in cash
Sitting entirely in cash feels safe but almost guarantees your purchasing power erodes.
Ignoring the Age Pension interaction
Small structural changes can meaningfully improve your entitlement — or protect it.
Not stress-testing the plan
Markets, health and family circumstances change. A plan that only works if everything goes right isn't a plan.
Waiting for 'someday'
The best time to start was ten years ago. The second-best time is now.
Frequently asked questions
How much do I need to retire in Australia?
The ASFA Retirement Standard (March 2026 quarter) suggests a couple aged 65–84 needs $78,566 per year for a comfortable retirement, or $52,473 for a modest lifestyle. Singles need $55,923 or $36,434 respectively. In lump-sum terms, ASFA estimates $730,000 for a couple and $630,000 for a single to fund a comfortable retirement alongside a part Age Pension.
At what age can I access my super?
You can generally access super once you reach preservation age (60 for anyone born after 1 July 1964) and meet a condition of release such as retirement. From age 65 you can access it whether you're working or not.
When am I eligible for the Age Pension?
The Age Pension age is 67 for anyone born on or after 1 January 1957. Eligibility also depends on residency and the income and assets tests.
Is my home counted for the Age Pension?
Your principal home is exempt from the Age Pension assets test. Other assets — investments, super in pension phase, second properties, vehicles — are counted.
When should I start planning for retirement?
Ideally as early as possible so compounding does the heavy lifting. Even within ten years of retirement, meaningful improvements are almost always possible through contribution strategy, debt reduction and investment structure.
Ready to turn this into your plan?
A short, no-obligation chat is the easiest way to see if we're the right fit.