"How much will I need to live the lifestyle I want?" is one of the most common retirement questions.
While there’s no one-size-fits-all answer—since everyone’s circumstances are different—we can offer a pretty good idea of the income you might need to enjoy your ideal retirement.
$50,000 per year is a fairly common goal for a retirement income, sitting just under the $51,814 figure recommended by the Association of Superannuation Funds of Australia (ASFA) for a comfortable retirement for a single person as at 2024.
To retire at age 60 with an income of $50,000 per year, a single person would need a super balance of around $515,000 (based on receiving a combination of Age Pension payments and super drawdown). To do the same at age 65 you would need around $360,000. These figures are determined using the Retirement Calculator as at December 2024.*
How much you’ll need will vary depending on the age you retire (and if you are single or part of a couple).
The super balance you’ll need for $50,000 per year will vary depending on what age you plan to retire at (the younger your retirement age, the more super you’ll need).
This table gives you an idea of how much you’ll need as a single person for a few different retirement ages. Again, the numbers are based on our Retirement Calculator.*
| Retirement age | Approx. super balance for $50,000 per year in retirement* |
|---|---|
| 60 | $515,000 |
| 65 | $360,000 |
| 70 | $270,000 |
Note, the above is based on you receiving a combination of Age Pension payments and super drawdowns when you retire.
How much you’ll need may be different if you’re part of a couple, as you and your partner may both be eligible for Age Pension payments, which would add to your combined income.
For a single retiree, an annual income of $50,000 is close to the ASFA’s comfortable retirement standard, which is currently set at $51,814. This estimate assumes you own your home outright, with no mortgage commitments.
While the exact number you need to retire comfortably varies from person to person, ASFA provides a useful benchmark through their Retirement Standard, which is updated quarterly.
For couples, $50,000 falls below the comfortable benchmark of $73,031 per year. In this case, the figure is closer to ASFA’s modest lifestyle standard, which allows for the basics but still provides more than the Age Pension alone. A modest lifestyle can be a good starting point for many, but it may not provide the level of comfort you desire.
Again, these figures are only a guide—your personal lifestyle choices and unique circumstances will play a big role in determining how much you’ll need in retirement.
The most recent numbers for those aged 65-84 looking to live a comfortable retirement lifestyle are below. These are based on the ASFA Retirement Standard as at September 2024.
| Modest retirement | Comfortable Retirement | |
|---|---|---|
| Couple | $47,475 | $73,031 |
| Single | $32,930 | $51,814 |
Remember, these figures are simply a starting point. To determine your own retirement needs, there are a number of important factors to consider:
When you’d like to retire
How long you expect your savings to last
How your super is invested
If you have other sources of income outside super
Taking these factors into account, as well as investment returns, annual inflation rates and fees, will help you create a clearer picture of what’s needed to enjoy the retirement lifestyle you’re aiming for.
Building a superannuation balance that supports $50,000 per year in retirement may seem daunting, but with the right strategies, it’s achievable:
1. Voluntary contributions
Adding extra contributions to your super—whether as a lump sum or regular payments—can significantly increase your savings. This is particularly effective when you harness the power of compound interest. Just be aware that contribution limits apply.
2. Salary sacrifice
Salary sacrificing involves directing a portion of your pre-tax income into your superannuation account. This not only boosts your retirement savings but also reduces your taxable income, which can be a win-win if you can afford to contribute more to your super.
3. Investment options
It’s important to review the investment options available through your super fund. Depending on your risk tolerance and the time left until retirement, choosing a balanced mix of growth and conservative investments can help maximize your returns.
4. Government co-contributions
If you’re a low-to-middle-income earner, the government may contribute up to $500 to your super if you make after-tax contributions.
5. Spouse contributions
If one partner has a significantly lower super balance, consider contributing to their super account or splitting your super contributions. Spouse contributions can help balance your combined retirement savings and make the most of both partners’ superannuation.
When planning for retirement, it’s important to keep in mind that most Australians will rely on a combination of super drawdowns and Age Pension payments to support their income.
You should review the eligibility requirements for the Age Pension to see if you will qualify.
For a single person, the full Age Pension currently sits at around $29,000 per year, while for a couple, it’s around $44,000. These numbers apply as at September 2024.
Even if you only receive a part pension, this extra income can help extend your super savings, providing peace of mind as you navigate retirement.
Issued by Togethr Trustees Pty Ltd ABN 64 006 964 049, AFSL 246383 ("Togethr"), the Trustee of Equipsuper ABN 33 813 823 017 ("the Fund"). Catholic Super is a division of the Fund. The information contained is general advice and information only and does not take into account your personal financial situation or needs. You should consider whether this information is appropriate to your personal circumstances before acting on it and, if necessary, you should seek professional financial advice. Where tax information is included, you should consider obtaining taxation advice. Before making a decision to invest in the Fund, you should read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) for the product which are available at csf.com.au. Financial advice may be provided to members by Togethr Financial Planning Pty Ltd (ABN 84 124 491 078 AFSL 455010) – a related entity of Togethr. Past performance is not a reliable indicator of future performance.
*Assumptions:
Figures determined using the Retirement Calculator as at December 2024:
| We acknowledge all First Peoples of the beautiful lands on which we live and work, and their enduring knowledge and connections to Country. We honour the wisdom of and pay respect to Elders past and present. |  |  |