“Will you have enough to retire?”
Australians retire with less than they need . If you’ve ever sat at a BBQ listening to a mate talk about their super and thought, “Hang on, am I even close?”, you’re not alone. The tough truth: most Aussies aren’t.
Here’s the kicker, around 75%–80% of Australians retire with less than $500,000 in their super. Sounds like a lot of money, right? But when you stack it against what’s actually needed for a comfortable lifestyle, it’s not even close.
In this article, we’ll unpack:
- What “enough” really means in retirement.
- How much super most Australians actually retire with.
- Why the gap exists.
- What you can do now if you’re worried you’re behind.
What Does “Enough” in Retirement Actually Mean?
The Association of Superannuation Funds of Australia (ASFA) sets the benchmark with its Retirement Standard. It outlines how much you need for two lifestyles:
- Modest lifestyle – covers the basics but leaves little room for extras.
- Comfortable lifestyle – allows you to travel, eat out, run a car, and enjoy leisure without financial stress.
As of 2024, the lump sums needed at retirement are:
| Lifestyle | Single Person | Couple |
| Comfortable | $595,000 | $690,000 |
| Modest | $100,000 | $115,000 |
Source: ASFA Retirement Standard
Plain English definition:
- A comfortable retirement means you can afford private health cover, own a car, take holidays, and enjoy a decent standard of living.
- A modest retirement keeps the lights on and food on the table, but luxuries are limited.
👉 Key Takeaway: To retire comfortably, most Australians will need around $690k as a couple, or $595k as a single, in super savings.
How Much Super Do Australians Actually Retire With?
Here’s the uncomfortable truth:
“Around 75% to 80% of individuals have balances below $500,000 around the time of retirement.”
(ASFA Report, 2024)
So while the benchmark for a comfortable retirement sits around $600k–$700k, the reality is that most people never get there.
That glossy “average balance” stat you sometimes see? Forget it. Averages hide the real story. Three out of four Australians fall short of the comfortable line. And remember, these are balances at the moment of retirement. Once you start drawing down, that money needs to last another 20 or 30 years.
👉 Key Takeaway: Most Australians retire with less than they need often falling short of the comfortable benchmark by $100k or more.
Why Do So Many Fall Short?
There are a few reasons most Australians miss the mark:
- Super is still young – compulsory super only kicked off in the 1990s. If you’re in your 60s today, you didn’t have super for most of your working life.
- Career breaks – common for people who’ve stepped out of the workforce to raise families.
- Part-time work – lower income equals lower contributions.
- Fund fees and poor performance – small drags over decades compound into big holes.
- Rising costs – what looked “enough” ten years ago doesn’t stretch nearly as far today.
And here’s where myths get dangerous. Don’t fall for the idea that the Age Pension will magically plug the gap, it’s more like pocket money than a lifestyle. Yes, it’s important, but it was always designed as a safety net, not your main retirement income.
What Can You Do If You’re Not On Track?
If you’re in your 50s or 60s and worried you’ll be part of the 80%, you’re not alone. The good news is there are levers you can still pull.
1. Review your super fund
- Check what you’re paying in fees and whether your fund is performing.
- Compare it against the official regulator performance test.
2. Consider extra contributions
- Salary sacrifice or after-tax contributions can add up surprisingly fast.
- Even a few years of extra effort can leave you tens of thousands better off.
3. Plan your retirement income strategy
- Your lump sum isn’t the finish line, it’s the starting pot.
- Transition-to-retirement strategies and account-based pensions can smooth the shift.
4. Check Age Pension eligibility
- Most Australians end up with a mix of super and Age Pension.
- Understand the income and asset tests early so you’re not caught off guard.
The bottom line? Being behind doesn’t mean it’s game over. But waiting until you’re already retired to make changes will almost always leave you worse off.
👉 Key Takeaway: Small steps today compound into a better tomorrow. Don’t wait until the year you hang up the work boots.
Frequently Asked Questions
1. How much super do I need to retire comfortably in Australia?
ASFA estimates around $595,000 for a single and $690,000 for a couple.
2. What if I retire with less than $500k?
You’ll likely need to rely more on the Age Pension and careful budgeting, which generally means a more modest lifestyle.
3. Can I retire early with less than the ASFA benchmark?
Yes, but it usually means cutting back expenses, working part-time, or leaning more on the Age Pension.
4. How much does the Age Pension pay?
As of 2024, the maximum Age Pension is about $1,116 per fortnight for singles, or $1,682 combined for couples (Services Australia).
5. What is the average super balance at retirement?
Men typically retire with $450k–$500k; women are closer to $400k or less.
6. Do women retire with less super than men?
Yes. On average, women retire with 20–30% less due to lower lifetime earnings and career breaks.
7. What is the difference between modest and comfortable retirement?
A modest lifestyle covers essentials, while comfortable allows for holidays, eating out, and better healthcare.
8. Can I live only on the Age Pension?
It’s possible, but it generally only supports a modest lifestyle, and not the level most people hope for.
9. How can I check if I’m on track for retirement?
You can use the ATO’s retirement planner, but for a clearer picture, it’s best to review your plan with a licensed adviser.
10. What should I do if I’m nearing retirement and short on savings?
Options include making catch-up contributions, delaying retirement, downsizing, or combining super with Age Pension entitlements.
Final Thoughts
The numbers don’t lie: most Australians retire with less than they need. While the ASFA benchmarks put a comfortable lifestyle at around $600k–$700k, three in four retirees don’t reach that mark.
That doesn’t mean you should panic, it means you should plan. Reviewing your fund, adding extra where you can, and setting up the right retirement income strategy can all help close the gap.
Don’t buy into hype, don’t rely on averages, and don’t assume the system will look after you. Retirement planning isn’t about guesswork, it’s about making clear, confident decisions with the information in front of you.
👉 At Wealthlab, we help Australians cut through the noise and understand what’s really needed for retirement. Book your free super review today and plan with confidence.
Learn More About Retirement & Superannuation
https://www.superannuation.asn.au/consumers/retirement-standard/
https://moneysmart.gov.au/grow-your-super/how-much-super-should-i-have