A good monthly retirement income in Australia, based on the most recent ASFA Retirement Standard (December 2025 quarter), is around $6,375 per month for a couple and $4,520 per month for a single retiree who own their home and want a comfortable lifestyle. For a modest lifestyle the figures are lower, at around $4,239 per month for a couple and $2,933 per month for a single.
If you’ve read older guides on this topic and are working from a $4,400 to $6,000 per month figure, the numbers have moved. The comfortable retirement cost has risen 3.5% for couples and 3.6% for singles over the past 12 months, according to ASFA. The lump sum benchmarks that fund those incomes also increased in February 2026, the first revision in three years.
This guide walks through the current 2026 figures, what each lifestyle actually covers, where most retirees fall in the range, and how the gap between what you spend and what you need affects what your super balance has to do.
The current ASFA monthly income benchmarks (December 2025 quarter)
The Association of Superannuation Funds of Australia (ASFA) publishes a Retirement Standard each quarter that breaks down what retirees actually spend across categories like food, healthcare, housing, transport and leisure. The December 2025 quarter is the most recent release.
For homeowner retirees aged 65 to 84:
| Lifestyle | Single (monthly) | Couple (monthly) | Single (annual) | Couple (annual) |
|---|---|---|---|---|
| Comfortable | $4,520 | $6,375 | $54,240 | $76,505 |
| Modest | $2,933 | $4,239 | $35,199 | $50,866 |
These figures assume you own your home outright. If you rent, the numbers are meaningfully higher.
For renters in the same age band:
| Lifestyle | Single (monthly) | Couple (monthly) | Single (annual) | Couple (annual) |
|---|---|---|---|---|
| Comfortable | Roughly +$1,300 to $1,700 above homeowner figures | Same gap | $67,000+ | $90,000+ |
| Modest | $4,140 | $5,594 | $49,676 | $67,125 |
The renter gap is the single biggest variable in retirement income planning, more than lifestyle preference or location. Owning your home outright is worth roughly $15,000 to $20,000 per year of additional spending capacity at the same standard of living.
What “comfortable” and “modest” actually cover
The labels can be misleading until you see what’s behind them.
A comfortable lifestyle includes:
- Private health insurance at top hospital cover and extras
- A reasonable car that can be replaced when needed
- Regular leisure activities and dining out
- One overseas trip every few years plus domestic travel
- Quality clothing, household goods, and the occasional renovation
- Good internet, mobile, streaming services
A modest lifestyle covers:
- Basic private health insurance
- An older second-hand car
- Local outings and occasional inexpensive holidays
- Basic food, utilities, and transport
- Limited room for discretionary spending or unexpected costs
The gap between modest and comfortable is around $20,000 per year for singles and roughly $27,000 for couples. That difference funds private health, travel, the ability to replace a car when needed, and the resilience to absorb unexpected costs without falling back on credit.
There’s also a third unofficial standard, the “frugal” or Age-Pension-only lifestyle, which sits below ASFA’s modest benchmark. For couples that’s around $1,810 per fortnight ($3,925 per month) from the maximum Age Pension. For singles it’s $1,200.90 per fortnight ($2,602 per month). Many Australian retirees actually live at this level rather than the modest or comfortable benchmarks, particularly if they don’t own their home outright.
What lump sum funds a good monthly retirement income
ASFA also publishes the lump sum at age 67 needed to fund each lifestyle. These figures were revised upward in February 2026, the first change in three years.
Updated lump sum benchmarks (February 2026):
| Lifestyle | Single | Couple |
|---|---|---|
| Comfortable | $630,000 (was $595K) | $730,000 (was $690K) |
| Modest | $110,000 (was $100K) | $120,000 (was $100K) |
If you were planning around the old $595,000 single or $690,000 couple figures, those targets are now $35,000 to $40,000 short of what ASFA models as sufficient.
Both the modest and comfortable benchmarks assume retirees receive a partial Age Pension. The lump sums on their own wouldn’t fund the lifestyles without that government top-up. This is one of the most important pieces of context that gets lost: the ASFA standards are built on a combination of super drawdowns and Age Pension entitlements, not super alone.
Please note: All figures, projections and scenarios in this article are approximate and for illustrative purposes only. Individual outcomes will vary based on personal circumstances, investment returns, fees, and current government policy. This is general information, not personal advice.
Where most Australian retirees actually sit
The headline ASFA numbers describe what’s needed for a particular lifestyle. The reality of what most Australians retire with is different.
According to recent ABS and ASFA data, the average super balance at retirement for Australians aged 60 to 64 is around $400,000 to $420,000 for men and $350,000 to $360,000 for women. That’s well below both the new $630,000 single comfortable benchmark and the $730,000 couple benchmark.
The implication isn’t that most Australians retire poorly. It’s that the Age Pension does much more of the work in funding retirement than the ASFA benchmarks suggest for the average retiree. For a couple with combined super of $500,000 and a home, the Age Pension combined with drawdowns typically lands them somewhere between the modest and comfortable benchmarks, which is more than enough for many retirees.
The real planning question isn’t “how do I hit $730,000 by retirement”. For many couples and singles approaching retirement, it’s “how do I structure what I do have so it produces a reliable income that, combined with whatever Age Pension I qualify for, supports the lifestyle I actually want.”
The income mix most retirees actually use
A good monthly retirement income in Australia almost always comes from a combination of sources, not just one. The typical mix:
Superannuation account-based pension: The main source of regular income for most retirees, drawn from their super balance after they retire and meet a condition of release. Withdrawals are tax-free after age 60.
Age Pension: A safety net that supplements super for most retirees. As at 20 March 2026, the maximum combined Age Pension for a couple is $1,810.40 per fortnight ($47,070/year), or $1,200.90 per fortnight for singles ($31,223/year). Reduced amounts apply under the assets and income tests.
Investment income: Term deposits, shares, ETFs, or investment property income outside of super. Tax treatment depends on the structure.
Casual or part-time work: Many retirees do some paid work in early retirement. The Work Bonus exempts the first $300 per fortnight per person of employment income from the Age Pension income test, making part-time work surprisingly tax-efficient for pensioners.
Savings drawdown: Cash or term deposits held outside super, used for one-off costs or to smooth income.
For most retirees the proportions look something like: 50% to 65% from super (account-based pension), 25% to 40% from Age Pension, with the balance from investments, savings, or work. The exact split depends heavily on how much super you’ve accumulated, when you retired, and whether you own your home.
How to estimate your own “good” monthly income
The ASFA numbers are useful benchmarks but they’re averages. A more useful exercise is to estimate your own number based on three honest questions.
What are your essential fixed costs? Add up housing costs (rates, insurance, utilities, repairs, mortgage if any), food, transport, healthcare premiums and out-of-pocket costs, communications, and insurances. This is your retirement floor. Below this you can’t sustain your current life.
What discretionary spending matters most to you? Travel, dining out, hobbies, helping grandchildren, replacing a car every few years, home improvements. Be specific. “Travel” could mean a domestic trip every two years or two months overseas annually, and the dollar difference is huge.
What’s your age-80 number? Healthcare costs ramp up significantly in your late 70s and 80s. Private health premiums rise, out-of-pocket medical costs grow, and there’s the prospect of in-home care or aged care to factor in. Around 34% of total retirement savings is consumed by healthcare across the course of retirement. Plan for the late years, not just the early ones.
Once you’ve got those three numbers, the sum gives you a more accurate personal benchmark than the ASFA averages. For many couples it lands somewhere between $5,500 and $7,500 per month. For singles, $4,000 to $5,500 per month. Where you sit in that range depends almost entirely on housing costs, healthcare needs, and discretionary lifestyle.
How drawdown rate affects what your super can produce
A common shorthand is the 4% rule, which says you can draw 4% of your starting balance each year and have a high probability of the money lasting 30 years. On a $600,000 balance that’s $24,000 per year, or $2,000 per month, before any Age Pension.
The 4% rule originated from US research on US asset classes and isn’t a precise fit for the Australian system, where the Age Pension is a significant additional income source and where tax-free returns in pension phase change the maths. Most Australian retirees can sustainably draw a higher percentage in early retirement, particularly if they’re prepared to adjust spending in market downturns.
The minimum drawdown rates set by the government also matter. From age 65 to 74, the minimum drawdown from an account-based pension is 5% of the balance per year. This rises with age:
| Age | Minimum drawdown |
|---|---|
| Under 65 | 4% |
| 65 to 74 | 5% |
| 75 to 79 | 6% |
| 80 to 84 | 7% |
| 85 to 89 | 9% |
| 90 to 94 | 11% |
| 95+ | 14% |
A retiree drawing only the minimum is leaving some money on the table in the early years if their goal is a comfortable lifestyle, but they’re also preserving capital for later in retirement.
If your projected income is lower than what you want
A few options that often come up when the gap is identified early enough:
Catch-up concessional contributions. If your total super balance was below $500,000 at the last 30 June, you can make a single larger contribution using up to five years of unused concessional cap space. This can move tens of thousands of dollars into super at a 15% tax rate instead of your marginal rate. Unused cap from 2020-21 expires on 30 June 2026, so the window is closing.
Salary sacrifice in your final working years. Increasing salary sacrifice contributions in your last 5 to 7 working years can add significantly to your super balance, particularly if your marginal tax rate is 32.5% or higher.
Review your investment option. A conservative super option earning 3 to 4% per year produces a meaningfully different outcome than a balanced option earning 5 to 6%. For money you won’t need for 10+ years, going too conservative is one of the more common ways to under-deliver retirement income.
Consider working an extra one to two years. Each additional year of full-time work has compound effects on the final balance: an extra year of contributions, an extra year of growth, and one year less of drawdown.
Coordinate with the Age Pension. Structuring assets to optimise Age Pension entitlement can add thousands per year to total retirement income. The interaction between super withdrawal timing, asset values, and the assets test is one of the highest-value planning areas in the years either side of pension age (currently 67).
Frequently asked questions
What is a good monthly retirement income in Australia in 2026? For homeowner retirees aged 65 to 84, ASFA’s December 2025 quarter benchmarks are $6,375 per month for a couple and $4,520 per month for a single for a comfortable lifestyle. For a modest lifestyle the figures are $4,239 per month for a couple and $2,933 per month for a single. Renters need substantially more.
How much super do I need for a comfortable monthly retirement income? ASFA’s February 2026 lump sum benchmarks are $630,000 for singles and $730,000 for couples. These figures assume you own your home and will receive a partial Age Pension. Both benchmarks were increased in February 2026 from the previous $595,000 and $690,000 figures.
What’s a realistic monthly retirement income for the average Australian? The average retiree has $400,000 to $420,000 in super (men) or $350,000 to $360,000 (women), which is below ASFA’s comfortable benchmarks. Combined with the Age Pension, most average-balance retirees who own their home end up between the modest and comfortable standards, typically around $3,500 to $5,500 per month for couples and $2,500 to $4,000 per month for singles.
How much does the Age Pension pay each month? As at 20 March 2026, the maximum Age Pension for a couple is $1,810.40 per fortnight, or roughly $3,925 per month combined. For singles it’s $1,200.90 per fortnight, or roughly $2,602 per month. The actual amount depends on the income and assets tests. Most retirees with super receive a part pension rather than the maximum.
How do I get a steady monthly income from my super? The most common structure is an account-based pension, which converts your super balance into a regular fortnightly or monthly income stream. Withdrawals are tax-free after age 60. The government sets minimum annual drawdown rates (5% per year from 65 to 74, rising with age), but you can draw more if needed. This is generally a better structure than withdrawing super as a lump sum.
What’s the difference between modest and comfortable retirement income in Australia? About $20,000 per year for singles and $27,000 per year for couples. The comfortable standard includes private health insurance, regular dining out, a reasonable car that can be replaced, occasional overseas travel, and home improvements. The modest standard covers basics but leaves little room for discretionary spending or unexpected costs.
Do I need more than ASFA’s comfortable benchmark to retire comfortably? For most homeowners, no. The ASFA benchmarks model a genuinely comfortable lifestyle including travel and discretionary spending. However, if you have higher-than-average healthcare needs, plan extensive overseas travel, want to support adult children financially, or live in a higher-cost area, you may need more than the benchmark figures. The benchmarks are starting points, not personal targets.
How does inflation affect my retirement monthly income target? The ASFA benchmarks are updated quarterly to reflect inflation. The comfortable benchmark rose 3.5 to 3.6% over the year to December 2025 quarter. When planning your own retirement income, the safer approach is to plan in current dollar terms and ensure your super and Age Pension entitlements are indexed to inflation (both account-based pensions through investment returns and the Age Pension through CPI-linked indexation provide some protection).
Worth getting right
A good monthly retirement income in Australia isn’t a single number. It depends on whether you own your home, how much you’ve saved in super, what lifestyle you want, what your healthcare needs are, and how the Age Pension fits into the picture. The ASFA benchmarks are a useful starting point but they’re averages, and your actual number could be higher or lower.
If you’d like to work through what your specific monthly retirement income could look like given your current super, expected Age Pension entitlement, and lifestyle goals, book a free chat with the Wealthlab team. No cost, no pressure, no jargon.
For a quick general snapshot of where your retirement income position currently stands, the Wealthlab retirement quiz and the free Wealthlab super calculator are both useful starting points. For deeper detail on how the Age Pension, super, and retirement income all interact, The Wealthlab Podcast covers it in detail with Scott and Phil.
