How much does the average retired person spend a month in Australia?”If you’ve ever asked yourself you’re already thinking like a smart planner.
Understanding your likely monthly expenses is one of the most important steps in preparing for retirement. It helps you know how much super you’ll need, what lifestyle you can afford, and whether your savings will last.
In this guide, we’ll break down how much the average retired person spends each month in Australia, what affects those costs, and how you can plan ahead for a comfortable lifestyle.
What Does “Average Retirement Spending” Really Mean?
When we talk about average retirement spending, it refers to how much retirees typically spend each month on essentials (like food, housing, and transport) and lifestyle choices (like holidays, hobbies, and health care).
Your expenses depend on your lifestyle, location, and whether you own your home. But national research gives us reliable benchmarks.
According to the ASFA Retirement Standard (June 2025):
- A comfortable lifestyle costs about $53,289 per year for singles and $72,148 for couples.
- A modest lifestyle costs around $34,000 for singles and $49,000 for couples.
That translates to monthly spending of roughly:
| Lifestyle Type | Single | Couple |
|---|---|---|
| Comfortable | ~$4,440/month | ~$6,010/month |
| Modest | ~$2,830/month | ~$4,080/month |
These figures assume you own your home outright and live a relatively healthy, independent lifestyle.
What’s Included in the Average Retiree’s Monthly Spending?
Here’s a breakdown of where the money goes for the average retired person each month:
| Category | Comfortable Lifestyle (Single) | Modest Lifestyle (Single) |
|---|---|---|
| Housing & Utilities | $550 | $400 |
| Food & Groceries | $680 | $500 |
| Health & Medical | $440 | $300 |
| Transport | $410 | $300 |
| Leisure & Recreation | $800 | $350 |
| Clothing & Personal Care | $200 | $120 |
| Household Goods | $180 | $100 |
| Insurance & Other Costs | $300 | $200 |
| Total Monthly Estimate | ~$4,400 | ~$2,800 |
These are general benchmarks your own expenses may vary depending on your location, health, and lifestyle choices.
Why Retirement Costs Are Rising in 2025
Inflation has pushed up the cost of living for retirees.
The latest ASFA report shows that the cost of a comfortable retirement rose 1.72% over the past year, mainly due to:
- Higher food and utility prices,
- Rising health insurance premiums, and
- Increasing travel and leisure costs.
That’s why planning ahead is so important even a small increase in annual costs can make a big difference over a 25-year retirement.
Factors That Affect How Much Retirees Spend
Here are some key factors that influence how much the average retired person spends a month:
- Home Ownership:
Retirees who own their home outright spend significantly less than those renting. Rent can add $2,000–$3,000 per month in major cities. - Location:
Living in Sydney or Melbourne is more expensive than regional areas. Coastal towns and smaller cities often offer a lower cost of living. - Health Costs:
Medical expenses increase with age especially for private health insurance and prescriptions. - Lifestyle Choices:
Dining out, travel, and entertainment costs vary widely. A “comfortable” retirement includes regular holidays, private health cover, and dining out a few times a week. - Inflation and Market Conditions:
The cost of goods, services, and insurance rises over time meaning your retirement income needs to grow, too.
How Much Super Do You Need for These Monthly Costs?
To cover those average monthly expenses, you’ll need a super balance that can generate enough income.
ASFA suggests that for a comfortable retirement:
- Singles need about $595,000 in super,
- Couples need around $690,000 in super (both retiring at 67).
For a modest lifestyle, the Age Pension may cover most costs, but having some super savings still helps cushion rising expenses.
How Much Super Do I Need to Retire Comfortably in Australia – Discover the super balance required for a stress-free retirement.
How to Manage Retirement Spending Wisely
If you’re planning your retirement budget, here are a few tips:
✅ Create a Retirement Budget:
List all monthly expenses (essentials and extras) to see how much you’ll need.
✅ Use the 4% Rule:
Many retirees use this rule withdrawing around 4% of their savings each year to live comfortably without depleting their funds too fast.
✅ Review Your Super Fund:
Choose a fund with strong performance and low fees to maximise your returns.
✅ Consider an Account-Based Pension:
This allows flexible, tax-free income once you retire.
✅ Account for Inflation:
Revisit your spending plan every year to adjust for rising prices.
FAQs:
1. How much does the average retired person spend a month in Australia?
Around $4,400 per month for singles and $6,000 per month for couples, according to ASFA’s 2025 data.
2. What’s the difference between a comfortable and modest retirement?
A comfortable lifestyle allows travel, dining out, and private health cover. A modest lifestyle covers basics like food, bills, and local leisure.
3. How can retirees reduce monthly spending?
Consider downsizing, consolidating insurance, or moving to regional areas where costs are lower.
4. How can I plan for retirement expenses?
Use a retirement calculator, review your super, and speak with a financial adviser to map out an income plan.
5. Do Age Pension payments cover average retirement costs?
The Age Pension helps, but it’s often not enough for a comfortable retirement combining it with superannuation income is ideal.
Plan Your Retirement Around Real Costs
So, how much does the average retired person spend a month?
Around $4,000 to $6,000, depending on your lifestyle and whether you own your home.
Knowing these numbers gives you a powerful head start in planning your future. It helps you understand how much super you’ll need and what lifestyle you can afford.
At Wealthlab, we help Australians build smart retirement strategies from budgeting and super optimisation to personalised income plans.
👉 Book a consultation today and take the first step toward a confident, well-planned retirement.