What is a good monthly retirement income in Australia?”,If you’ve ever asked yourself you’re already thinking ahead and that’s a great start.
Retirement is about more than stopping work; it’s about maintaining your lifestyle, covering your bills, and enjoying the freedom you’ve worked for.
But how much income do you actually need each month to make that possible in Australia?
In this blog, we’ll break down what a good monthly retirement income looks like in 2025, what affects that figure, and how to plan for your ideal lifestyle.
What Is a Good Monthly Retirement Income in Australia?
According to the Association of Superannuation Funds of Australia (ASFA) Retirement Standard (June 2025), here’s what a good monthly retirement income looks like:
| Lifestyle | Single | Couple |
|---|---|---|
| Comfortable Retirement | ~$4,440 per month | ~$6,010 per month |
| Modest Retirement | ~$2,830 per month | ~$4,080 per month |
A comfortable lifestyle means being able to afford regular holidays, dining out, quality healthcare, and a car upgrade every few years.
A modest lifestyle covers basics like housing, groceries, transport, and local leisure but little room for extras.
So, when people ask “what is a good monthly retirement income?”, the answer depends on what kind of lifestyle you want to enjoy.
How Much Income Do You Need to Live Comfortably?
A comfortable retirement in Australia generally requires:
- Singles: Around $53,000 per year
- Couples: Around $72,000 per year
That translates to roughly $4,400–$6,000 per month assuming you own your home outright and live a relatively healthy lifestyle.
But remember: inflation, healthcare costs, and personal goals can all affect what’s “good” for you.
What Makes Up Your Monthly Retirement Income?
Most Australians draw retirement income from a mix of sources:
- Superannuation Income:
The main source of retirement income. You can convert your super into an account-based pension, providing flexible, tax-free payments after age 60. - Age Pension:
The government’s Age Pension provides a safety net.
As of 2025, maximum payments are about:- $1,116 per fortnight for singles (~$2,400/month)
- $1,682 per fortnight for couples (~$3,600/month combined)
- Investment Income:
Dividends, property rent, or term-deposit interest can supplement your monthly income. - Part-Time or Casual Work:
Many retirees choose light work or consulting to stay active and top up their income.
Factors That Affect What a “Good” Retirement Income Looks Like
Everyone’s retirement needs are different. Your ideal monthly income depends on:
- Home Ownership — Retirees without a mortgage spend $1,000–$2,000 less per month.
- Location — Living in Sydney or Melbourne is costlier than regional towns.
- Health Costs — Private health premiums, medication, and dental care rise with age.
- Lifestyle — Travel, dining, and hobbies make a big difference to monthly budgets.
- Inflation — Prices rise over time, so plan for income that can grow with it.
How to Calculate Your Ideal Monthly Retirement Income
To find your personal “good” monthly income, start by asking three questions:
- What are my fixed costs?
Include food, utilities, insurance, and medical expenses. - What lifestyle do I want?
Do you plan to travel, dine out, or maintain a car? - What’s my super balance?
Use a retirement calculator (like Moneysmart’s) to see how long your super will last at different withdrawal rates.
Most retirees use the 4% rule withdrawing around 4% of their total savings per year.
For example, with $600,000 in super, that’s about $24,000 per year ($2,000/month) plus any Age Pension or investment income.
How to Boost Your Monthly Retirement Income
If your projected income looks lower than ideal, here are ways to improve it:
✅ Contribute More to Super:
Salary sacrifice or make voluntary contributions while you’re still working.
✅ Review Your Investment Option:
A balanced or growth fund can deliver stronger long-term returns than a conservative one.
✅ Delay Retirement:
Working even one or two extra years can significantly increase your final balance.
✅ Start an Account-Based Pension:
Gives you flexibility and regular income, with tax-free earnings once you’re over 60.
✅ Consult a Financial Adviser:
Professional advice helps you find the right balance between risk, returns, and income stability.
FAQs:
1. What is a good monthly retirement income for a single person in Australia?
Around $4,400 per month provides a comfortable lifestyle for singles, according to ASFA’s 2025 data.
2. What is a good monthly retirement income for couples?
Couples need about $6,000 per month for a comfortable lifestyle covering travel, dining, and healthcare.
3. Can I live comfortably on the Age Pension?
The Age Pension alone provides a modest lifestyle. To live comfortably, most retirees need extra income from super or savings.
4. How much super do I need to earn that income?
Around $595,000 for singles or $690,000 for couples, assuming you draw down super at around 4% per year and supplement with Age Pension.
5. What’s the best way to create a steady retirement income?
Combine your super with an account-based pension and investment income for flexibility and tax-free earnings.
So, What Is a Good Monthly Retirement Income?
So, what is a good monthly retirement income in Australia?
For most people, it’s between $4,000 and $6,000 a month, depending on lifestyle, health, and housing.
The key is to plan early, review regularly, and make your money work for you not the other way around.
At Wealthlab, we help Australians understand their super, create realistic income strategies, and retire with confidence.
👉 Book a consultation today to see how much you’ll need each month and how to make it happen.