The two most commonly used benchmarks for retirement in Australia are the modest and comfortable standards published by ASFA (the Association of Superannuation Funds of Australia). Most Australians fall somewhere between the two, and understanding what each actually covers is the fastest way to work out where you stand.
Here is a plain-English breakdown of what each standard includes, what they cost, the super balances needed at every age to stay on track, and what the numbers mean if you rent rather than own.
Modest vs Comfortable Retirement: What’s the Actual Difference?
ASFA defines two retirement lifestyles. The difference between them is not small.
| Modest retirement | Comfortable retirement | |
|---|---|---|
| Annual income needed (single) | $35,199 | $54,837 |
| Annual income needed (couple) | $50,866 | $77,375 |
| Super balance needed at 67 (single) | $110,000 | $630,000 |
| Super balance needed at 67 (couple) | $120,000 | $730,000 |
| Home ownership assumed | Yes | Yes |
| Age Pension supplement assumed | Yes (majority of income) | Yes (partial) |
Source: ASFA Retirement Standard, February 2026 update (Current as at May 2026)
Please note: All figures, tables and scenarios in this article are for general illustration only and are based on published ASFA data. Individual outcomes depend on personal circumstances, retirement age, home ownership status, investment returns and fees. This is general information, not personal advice.
The gap between modest and comfortable is roughly $20,000 a year for singles and $27,000 for couples. That difference funds private health insurance, a car you can replace when needed, regular dining out, annual domestic holidays and an overseas trip every few years. A modest retirement doesn’t include most of those things.
The lump sum gap is even more striking: $520,000 more for a single person, $610,000 more for a couple. The reason the modest lump sum is so much lower is that the Age Pension covers most of the spending at that level. A modest retiree is essentially living largely on the Age Pension with a small super supplement. A comfortable retiree is primarily funding their own lifestyle from super, with the Age Pension providing a declining supplement over time.
What Does a Comfortable Retirement Actually Cover?
The comfortable standard is not extravagant. ASFA’s budget covers:
- Private health insurance (hospital and extras)
- A reliable car, replaced as needed
- Annual domestic holidays
- An overseas trip approximately every seven years
- Regular dining out and social activities
- Quality clothing and household goods
- Ability to replace appliances and home fittings when needed
- Reasonable leisure activities, hobbies and memberships
There is no business class travel, no investment property, no private school fees for grandchildren. This is a dignified, independent retirement with choice and security. Not a lavish one.
What a modest retirement covers:
- Basic groceries, utilities and housing costs
- Basic health cover
- Infrequent, low-cost leisure activities
- Limited domestic travel
- Public transport rather than a car in some scenarios
A modest retiree relies on the Age Pension as the primary income source. Super extends it slightly but is not the main driver.
Ideal Super Balance by Age: Are You on Track?
This is the question behind “ideal super balance by age australia” searches. ASFA publishes target balances by age milestone for someone on track for a comfortable retirement at 67. These assume a future pre-tax income of $65,000 per year tracking inflation, with the 12% SG applying throughout.
| Age | On-track balance (comfortable retirement target) |
|---|---|
| 30 | ~$55,000 to $75,000 |
| 35 | ~$100,000 to $135,000 |
| 40 | ~$150,000 to $200,000 |
| 45 | ~$210,000 to $280,000 |
| 50 | ~$280,000 to $370,000 |
| 55 | ~$360,000 to $470,000 |
| 60 | ~$450,000 to $580,000 |
| 67 | $630,000 (single) / $730,000 (couple) |
Sources: ASFA Retirement Standard February 2026; ASFA “Super Balance Detective” tool
These are targets for a comfortable retirement for a single homeowner. Couples tracking toward $730,000 combined would use higher combined figures at each milestone.
How do real balances compare?
The median Australian super balance (the midpoint where half of Australians have more and half have less) sits well below these targets at every age. The median for ages 60 to 64 is approximately $250,000, compared to the comfortable target of $450,000 to $580,000. That gap is real, but it’s also why the Age Pension exists: it supplements the retirement income of the majority of Australians who retire with less than the comfortable benchmark.
Average balances (which include high-balance accounts) paint a more optimistic picture: men aged 60 to 64 average around $395,000, women around $313,000. A couple at that age holds a combined average close to $700,000, which is within range of the $730,000 couple target.
The gender gap at every age remains significant. Women average roughly 25 to 30% less super than men, driven by career breaks, part-time work and the pay gap. Scott and Phil covered this in detail in Episode 17 of the Wealthlab Podcast.
To check where your balance sits relative to these targets, use the free Wealthlab super calculator.
What If You’re Renting? The Numbers Are Higher
The ASFA standard assumes you own your home outright at retirement. If you rent, the required income is substantially higher because rent becomes an ongoing major expense that the super balance needs to fund.
ASFA updated the standard in June 2025 to include a specific modest retirement budget for private renters. The bottom line: renting retirees need meaningfully more super than the headline figures suggest, even at the modest level.
A rough guide: if you expect to rent in retirement, add approximately $15,000 to $20,000 per year to the annual income target to cover rent costs (varies significantly by city and dwelling type). This requires a proportionally higher lump sum, or a plan for the rental burden to be covered by other income sources such as government rent assistance.
For homeowners who own outright, the ASFA figures apply as published. For those still carrying a mortgage into retirement, the picture sits between renting and owned: you have a fixed housing cost that will eventually end, but it draws on income and assets during the repayment period.
This is one reason Phil and Scott emphasise paying off the mortgage before or at retirement, as covered in Episode 5 of the Wealthlab Podcast: “Should You Pay Off Your Mortgage With Super at 60?”
What the February 2026 ASFA Update Actually Changed
The February 2026 revision was the first update to ASFA’s lump sum figures in three years. Here’s what changed:
| Previous lump sum | Updated lump sum (Feb 2026) | |
|---|---|---|
| Comfortable single | $595,000 | $630,000 |
| Comfortable couple | $690,000 | $730,000 |
| Modest single | $100,000 | $110,000 |
| Modest couple | $100,000 | $120,000 |
The income figures (how much you spend each year) are updated quarterly. The lump sum figures (how much super you need at 67) are updated less frequently, reflecting a bigger structural reassessment.
ASFA CEO Mary Delahunty explained the increase: retirees’ living costs have risen, but Age Pension support hasn’t kept pace, meaning retirees need to fund more of their lifestyle themselves. The upward revision in modest-level lump sums also reflects a change in how ASFA models the couple figure, which was previously the same as singles at the modest level.
If you were planning retirement around the old numbers, particularly the $595,000 single or $690,000 couple figures, those benchmarks are now out of date by $35,000 to $40,000.
How the Age Pension Fits In
Both the modest and comfortable benchmarks assume you receive some Age Pension. This is an important detail many people miss.
The Age Pension is available from age 67 and is means-tested. The current full Age Pension rates (from March 2026) are approximately:
- Single: $29,000 per year
- Couple combined: $43,700 per year
At the modest level, the Age Pension covers most of the spending. The lump sum of $110,000 to $120,000 needed is essentially a buffer on top of the pension, not a standalone fund.
At the comfortable level, super does the heavy lifting in early retirement. As the balance is drawn down over 20 to 25 years, the Age Pension gradually fills a larger share of income needs. The $630,000 and $730,000 figures are modelled on this gradual drawdown pattern.
This is what makes the ASFA calculation more sophisticated than a simple “how many years of income does this fund” exercise. It is a dynamic model where the Age Pension supplement increases as super decreases over time.
Phil walked through exactly how this interaction works with real case studies in Episode 10 of the Wealthlab Podcast: “How the Age Pension Really Works”. For more on how to structure your assets to get the most from both super and the pension, see our Pension and Centrelink advice page.
Is the ASFA Benchmark the Right Target for You?
ASFA’s figures are the most widely referenced benchmark in Australia, but they’re not the only view, and they may not match your actual retirement.
Super Consumers Australia publishes an alternative set of targets based on actual retiree spending data from the ABS. Their figures tend to suggest many Australians need less than the ASFA comfortable standard, because real retiree spending patterns show significant reduction in spending in the middle and later years of retirement.
Your retirement may cost less if:
- You have low housing costs (own outright, minimal rates and maintenance)
- You’re in good health with limited healthcare costs
- You’ve paid off all debt before retiring
- Your lifestyle expectations are modest relative to the ASFA “comfortable” definition
- You plan to downsize, travel domestically rather than internationally, or reduce discretionary spending
Your retirement may cost more if:
- You rent (add $15,000 to $20,000+ per year)
- You have ongoing health expenses or care needs
- You retire before 67 (the gap to Age Pension age requires more super to bridge)
- You want to travel internationally more frequently than the ASFA model assumes
- You plan to support adult children or leave a meaningful inheritance
Episode 19 of the Wealthlab Podcast, “Is Early Retirement a Trap? The $150K Gap Most Aussies Miss”, covers the spending wave pattern most retirees follow: higher spending in the active early years, lower in the middle, then rising again in the final years due to healthcare. The ASFA flat annual figure doesn’t fully capture this, which is why building some buffer above the benchmark is prudent.
How to Get Closer to the Comfortable Standard
If your balance is tracking below the comfortable target for your age, there are concrete steps that can close the gap.
Use the concessional cap fully. The $30,000 annual concessional contributions cap includes your employer’s 12% SG. If you have room above the SG rate, salary sacrifice can fill it. At 37% marginal rate, each $10,000 of salary sacrifice saves approximately $2,200 in tax while boosting your super.
Use catch-up contributions. If your balance is under $500,000 and you haven’t maximised contributions in the past five years, unused cap space can be carried forward and used in a single year. Unused amounts from the 2020/21 financial year expire permanently on 30 June 2026. Check your carry-forward balance in myGov now. Episode 7 of the Wealthlab Podcast covers this in detail: “The Superannuation Tax Strategy Most Australians Underuse”.
Review your investment option. Many Australians in their 50s are in a default balanced option that is more conservative than necessary for the 25 to 30 years their money actually needs to last. As Scott covered in Episode 1, a growth portfolio historically outperforms a conservative one over long retirements, even accounting for downturns.
Equalise super between partners. If one partner has significantly more super than the other, spouse contributions, contribution splitting or a recontribution strategy can balance the position and maximise the combined tax-free pension phase. See our guide on can couples combine super in Australia.
Plan the Age Pension interaction. How you structure assets relative to the Centrelink assets and income tests makes a meaningful difference to your effective total income. Getting this right before you retire is one of the highest-value planning decisions in the retirement phase.
For a snapshot of where your balance sits now and what it’s projected to reach at retirement, use the free Wealthlab super calculator.
Frequently Asked Questions
How do modest and comfortable retirement savings targets compare in Australia?
At the comfortable level, a single homeowner needs $630,000 in super at 67 and around $54,837 per year in income. At the modest level, the same single homeowner needs $110,000 and around $35,199 per year. For couples, it’s $730,000 and $77,375 (comfortable) versus $120,000 and $50,866 (modest). The Age Pension covers most spending at the modest level, while the comfortable standard is primarily funded by super with a partial Age Pension supplement.
What is the ideal super balance by age in Australia?
ASFA publishes target balances for someone on track for a comfortable retirement at 67. At 40, the target is approximately $150,000 to $200,000. At 50, approximately $280,000 to $370,000. At 60, approximately $450,000 to $580,000. Most Australians are below these targets, which is why the Age Pension supplements retirement income for the majority of retirees.
What is the cost of retirement in Australia in 2026?
According to ASFA’s February 2026 update, a comfortable retirement costs approximately $54,837 per year for a single homeowner and $77,375 for a couple. A modest retirement costs around $35,199 per year for singles and $50,866 for couples. Both figures are for homeowners. Renters need substantially more to cover ongoing rent costs.
How much super do you need for a comfortable retirement in Australia?
$630,000 at age 67 for a single homeowner, $730,000 for a couple (ASFA February 2026 figures). These assume home ownership and a partial Age Pension supplementing drawdown over retirement.
What is the difference between modest and comfortable retirement in Australia?
About $20,000 per year in income and $520,000 in lump sum for a single person. A comfortable retirement includes private health insurance, a car, annual domestic holidays, occasional overseas travel, regular dining out and ability to replace household items. A modest retirement covers essentials only and relies primarily on the Age Pension.
What if I retire before 67?
If you retire before 67, you need more super because you’re funding a longer period before the Age Pension kicks in. The ASFA benchmark is for retirement at 67. Retiring at 60 adds seven years of full self-funding, which significantly increases the required lump sum. Episode 19 of the Wealthlab Podcast covers the impact of retiring one year earlier on retirement funding.
Does the ASFA standard apply if I’m renting?
No. The standard assumes home ownership. ASFA updated in June 2025 to include a renting benchmark at the modest level. Private renters in retirement need substantially more annual income to cover rent on top of living expenses, which increases the required super balance significantly.
Is $500,000 enough to retire comfortably in Australia?
For a single homeowner at 67, $500,000 is below the ASFA comfortable benchmark of $630,000. It is above the modest threshold and would support a lifestyle somewhere between modest and comfortable, particularly with a part Age Pension. For a couple, $500,000 combined is well below the $730,000 comfortable benchmark. Whether it is sufficient depends heavily on your actual spending plans, home ownership status and whether you’re eligible for a part Age Pension.
Ready to Work Out Where You Stand?
The ASFA benchmarks tell you what a comfortable or modest retirement costs. The more important question is whether your balance is on track to get there.
Use the free Wealthlab super calculator to see how your current balance compares to Australian averages and the retirement income targets above. It takes about two minutes and requires no sign-up.
If you’d like to talk through what your retirement income could actually look like, book a free chat with the Wealthlab team. No jargon, no obligation.
