When people start thinking seriously about retirement, one question always comes up “What does a comfortable retirement in Australia actually look like?”For some, it’s about freedom to travel and enjoy new experiences. For others, it’s about financial peace of mind being able to pay bills without stress, cover healthcare, and still afford little luxuries like dining out or upgrading household items.
The idea of a comfortable retirement in Australia isn’t about being rich it’s about security, choice, and living well. Let’s explore what that means in real terms, how much income you’ll need, and how much superannuation is recommended to achieve it.
Comfortable vs Modest Retirement
The ASFA Retirement Standard is the most trusted guide for retirement living costs in Australia. It defines two key lifestyles:
- Modest retirement: Covers only the basics food, housing, utilities, clothing, and limited leisure.
- Comfortable retirement: Provides enough income to enjoy travel, good health cover, hobbies, regular leisure activities, and social outings, all without financial stress.
👉 Put simply: a modest retirement means surviving, while a comfortable retirement in Australia means living.
How Much Does a Comfortable Retirement in Australia Cost?
According to ASFA’s 2025 estimates:
- A single person needs around $51,000 per year.
- A retired couple needs around $70,000 per year.
To support this lifestyle, ASFA suggests:
- $595,000 in super for singles
- $690,000 in super for couples
👉 These figures assume you own your home and will also receive some Age Pension support to top up your income later.
What Does Comfortable Retirement in Australia Include?
A comfortable retirement isn’t extravagant, but it allows freedom of choice. It typically includes:
- Healthcare & security: Private health insurance and out-of-pocket medical costs.
- Transport: Owning and replacing a reliable car when needed.
- Travel: Annual domestic holidays plus occasional international trips.
- Lifestyle: Dining out regularly, keeping up with hobbies, memberships, or sports.
- Household upgrades: Ability to replace appliances, furniture, clothing, and technology.
- Social life: Enough money to enjoy entertainment, family events, and community activities.
The goal is financial confidence knowing you can do these things without draining your savings too quickly.
The Reality: Average Super Balances at 60–64
While ASFA provides clear targets, the average Australian retires with less. ATO data shows:
- Men aged 60–64 average around $359,000 in super.
- Women aged 60–64 average around $289,000 in super.
This is well below the “comfortable” benchmark, which means many retirees rely on a mix of superannuation, Age Pension, and personal savings to fund their lifestyle.
How to Work Toward a Comfortable Retirement in Australia
Even if your balance is below the benchmark, there are strategies to improve your position:
- Boost contributions – Use salary sacrifice or after-tax contributions while working.
- Spouse strategies – Spouse contributions or contribution splitting can help even out balances.
- Investment choices – Review your fund’s investment option to balance growth and security.
- Leverage Age Pension – Many Australians will qualify for part or full Age Pension, which supplements super.
- Downsize if needed – Selling a larger home can free up funds and reduce expenses.
FAQs:
1. How much super do I need for a comfortable retirement in Australia?
ASFA recommends around $595,000 for singles and $600,000 for couples, assuming home ownership and some Age Pension eligibility.
2. What annual income is considered comfortable?
About $50,000 for singles and $70,000 for couples, which covers health, travel, leisure, and living costs without financial stress.
3. What if I retire with less than the benchmark?
You can still enjoy retirement with careful budgeting, part Age Pension, and lifestyle adjustments. Many retirees manage comfortably with less super.
4. Does comfortable retirement include overseas travel?
Yes. It generally includes some international trips, as well as annual domestic holidays.
5. Is the Age Pension part of the calculation?
Yes. ASFA assumes most retirees will receive at least a part Age Pension to supplement their super savings.
Comfortable Retirement Isn’t Just About Money
While the ASFA numbers are useful, remember: retirement isn’t only about super balances. It’s about how you want to live.Some retirees are happy with a modest lifestyle and plenty of time at home with family. Others want the freedom to travel and spend more on leisure. Your version of “comfortable” might look different from the ASFA benchmark and that’s okay.
The real goal is peace of mind: knowing you can cover essentials, afford some luxuries, and enjoy retirement without constant financial stress.
A comfortable retirement in Australia isn’t about luxury it’s about security, freedom, and enjoying the lifestyle you’ve worked for. In dollar terms, that means around $51,000 a year for singles and $72,000 for couples, with recommended super balances of $600k–$700k.
But remember, comfort is personal. Even if you fall below the benchmarks, smart planning, Age Pension, and good money management can still give you peace of mind and the retirement you deserve.
At Wealthlab, we help Australians create strategies that turn their super into a secure, sustainable, and comfortable retirement.
👉 Book a consultation today and start planning your retirement on your terms.
Learn More About Retirement & Superannuation
https://www.ato.gov.au/api/public/content/0-74828496-dead-4b1a-8503-ffbe95d37398?
https://treasury.gov.au/policy-topics/superannuation
https://www.servicesaustralia.gov.au/who-can-get-age-pension?