A comfortable retirement in Australia has an official price tag. On the ASFA Retirement Standard, it costs $56,166 a year for a single homeowner and $78,998 for a couple, funded by super lump sums of $630,000 and $730,000 at age 67. Most Australians retire somewhere between that standard and ASFA’s modest one, 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) | $36,548 | $56,166 |
| Annual income needed (couple) | $52,690 | $78,998 |
| 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, June quarter 2026 budgets; lump sums revised February 2026. Current as at October 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 $19,600 a year for singles and $26,300 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 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 growing supplement as the balance draws down.
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, the ability to replace appliances when needed, and reasonable leisure activities and memberships.
There is no business class travel, no investment property, no private school fees for grandchildren. This is a dignified, self-sufficient retirement with choice and security. Not a lavish one.
A modest retirement covers basic groceries, utilities and housing costs, basic health cover, infrequent low-cost leisure, limited domestic travel, and 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, but is not the main driver.
Ideal super balance by age: are you on track?
ASFA publishes target balances by age for someone on track for a comfortable retirement at 67, assuming income around $65,000 a year tracking inflation and 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 (lump sums revised February 2026); ASFA “Super Balance Detective” tool. Figures approximate.
How do real balances compare?
The median tells the honest story. On the latest ATO Taxation Statistics (2023-24, released June 2026), the median balance at 60 to 64 is around $203,000, less than half the bottom of the comfortable on-track range. That gap is real, but it is also why the Age Pension exists: it supplements the retirement income of the majority of Australians who retire below the comfortable benchmark.
Averages paint a brighter picture because large accounts pull them up: men at 60 to 64 average around $413,700 and women around $327,440 on the same ATO data. A couple at those averages holds roughly $740,000 combined, which now sits slightly above the $730,000 couple target. The gender gap remains significant, with women averaging around 20 per cent less super than men at this age, driven by career breaks, part-time work and the pay gap. Scott and Phil covered the women’s super gap in detail in Episode 17 of the 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 the super balance has to fund.
ASFA added a specific budget for private renters at the modest level in June 2025, and it confirms that renting retirees need meaningfully more 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 a year to the income target (varying significantly by city and dwelling), which requires a proportionally higher lump sum or other support such as Commonwealth Rent Assistance.
For homeowners who own outright, the ASFA figures apply as published. For those carrying a mortgage into retirement, the picture sits in between, which is one reason Scott and Phil spent a whole episode on the mortgage question: 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 sums in three years:
| 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 are updated quarterly. The lump sums are updated less often, reflecting a bigger structural reassessment. ASFA CEO Mary Delahunty explained the increase: retirees’ living costs have risen faster than Age Pension support, so retirees need to fund more of their lifestyle themselves. The modest couple figure also changed methodology, having previously matched the single figure.
If you were planning retirement around the old numbers, particularly $595,000 single or $690,000 couple, those benchmarks are now out of date by $35,000 to $40,000.
How the Age Pension fits in
Both benchmarks assume you receive some Age Pension, which is a detail many people miss.
The Age Pension is available from 67 and is means-tested. From 20 September 2026, the full rates are $1,237.70 a fortnight (about $32,180 a year) for a single and $1,866.00 a fortnight (about $48,516 a year) for a couple combined. Source: Services Australia. These figures are set by the Australian Government and are typically updated each March and September.
At the modest level, the pension covers most of the spending: the full single pension alone funds about 88 per cent of the $36,548 modest budget, which is why the lump sum needed is only $110,000 to $120,000. At the comfortable level, super does the heavy lifting early, and as the balance draws down over 20 to 25 years, the pension gradually fills a larger share. The $630,000 and $730,000 figures are modelled on that dynamic, which makes the ASFA calculation more sophisticated than a simple how-many-years-of-income exercise.
Phil walked through exactly how this interaction works with real case studies in Episode 10 of the podcast. For how to structure 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 are not the only view, and they may not match your actual retirement. Super Consumers Australia publishes alternative targets based on actual retiree spending from ABS data, and their figures tend to suggest many Australians need less than the ASFA comfortable standard, because real retiree spending drops noticeably through the middle years of retirement.
Your retirement may cost less if you own outright with low housing costs, you’re in good health, debt is cleared before retiring, your expectations are modest relative to ASFA’s comfortable definition, or you plan to downsize or travel domestically.
Your retirement may cost more if you rent (add $15,000 to $20,000 or more a year), you have ongoing health or care costs, you retire before 67 and have to bridge the gap yourself, you want more international travel than the ASFA model assumes, or you plan to support adult children or leave a meaningful inheritance.
Scott and Phil covered the gap between where Australians actually land and the benchmark in Episode 19: the average couple retires with about $540,000 combined, which was a $150,000 shortfall against the old comfortable standard and is closer to $190,000 against the updated $730,000 figure. The episode also covers the spending wave most retirees follow, higher in the active early years, lower in the middle, rising again late for healthcare, which the flat ASFA annual figure doesn’t fully capture. We generally find real client spending follows that wave rather than a straight line, 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 target for your age, there are concrete levers.
Using the concessional cap fully. The cap is $32,500 for 2026-27 and includes the employer’s 12% SG. If there is room above the SG, salary sacrifice can fill it: at a 37% marginal rate, each $10,000 of salary sacrifice saves roughly $2,200 to $2,400 in tax (depending on the Medicare levy) while boosting super.
Using catch-up contributions. If your total super balance is under $500,000, unused cap amounts from the previous five years can be carried forward and used in a single year. Unused cap from the 2021-22 financial year expires permanently on 30 June 2027, so the carry-forward balance in myGov is worth checking before then. Episode 7 covers the strategy in detail: The Superannuation Tax Strategy Most Australians Underuse.
Reviewing the investment option. Many Australians in their 50s sit in a default option more conservative than a 25-to-30-year horizon calls for. As Scott covered in Episode 1, a growth portfolio has historically outperformed a conservative one over long retirements, even accounting for downturns, and in the episode’s example the conservative option ran out 15 years earlier on the same spending.
Equalising super between partners. Where one partner holds significantly more, spouse contributions, contribution splitting or a recontribution strategy can balance the position and maximise the combined tax-free pension phase. See our guide on whether couples can combine super in Australia.
Planning the Age Pension interaction. How assets sit relative to the Centrelink tests makes a meaningful difference to total income, and getting it right before retiring is one of the highest-value planning decisions in the retirement phase.
For a snapshot of where your balance sits and what it’s projected to reach, 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 at 67 and around $56,166 a year in income. At the modest level, $110,000 and around $36,548 a year. For couples: $730,000 and $78,998 (comfortable) versus $120,000 and $52,690 (modest). The Age Pension covers most spending at the modest level, while comfortable is primarily super-funded with a partial pension supplement.
What is the ideal super balance by age in Australia? ASFA’s on-track targets for a comfortable retirement at 67 are roughly $150,000 to $200,000 at 40, $280,000 to $370,000 at 50 and $450,000 to $580,000 at 60. Most Australians are below these targets, which is why the Age Pension supplements the majority of retirements.
What is the cost of retirement in Australia in 2026? On the June quarter 2026 ASFA figures, a comfortable retirement costs about $56,166 a year for a single homeowner and $78,998 for a couple. A modest retirement costs around $36,548 for singles and $52,690 for couples. Both assume home ownership; renters need substantially more.
How much super do you need for a comfortable retirement in Australia? $630,000 at 67 for a single homeowner, $730,000 for a couple, on the February 2026 ASFA lump sums. These assume home ownership and a part Age Pension supplementing drawdown through retirement.
What is the difference between modest and comfortable retirement in Australia? About $19,600 a year in income and $520,000 in lump sum for a single person. Comfortable includes private health insurance, a car, annual domestic holidays, occasional overseas travel and regular dining out. Modest covers essentials and relies primarily on the Age Pension.
What if I retire before 67? You need more super, because you’re funding the whole gap before the Age Pension starts. The ASFA benchmark assumes retiring at 67; retiring at 60 adds seven fully self-funded years. Episode 19 of the podcast shows how even one year earlier can shift when the money runs out by five or more years.
Does the ASFA standard apply if I’m renting? No. The standard assumes home ownership. ASFA added a renting benchmark at the modest level in June 2025, and private renters need substantially more annual income to cover rent, which lifts the required balance significantly.
Is $500,000 enough to retire comfortably in Australia? For a single homeowner at 67, $500,000 sits below the $630,000 comfortable benchmark but well above the modest threshold, supporting a lifestyle in between, particularly with a part Age Pension. For a couple, $500,000 combined is well below the $730,000 benchmark. Whether it is sufficient depends on actual spending plans, home ownership and pension eligibility.
Ready to work out where you stand?
The ASFA benchmarks tell you what a comfortable or modest retirement costs. The more useful question is what your own balance and spending plans add up to, and that answer is individual.
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.
