If you own your home and want a comfortable lifestyle, the latest ASFA Retirement Standard (December 2025 quarter) puts the number at around $76,505 a year for a couple and $54,240 a year for a single retiree. That works out to roughly $6,375 a month for couples and $4,520 a month for singles.
For a modest lifestyle, those figures drop to about $50,866 a year for couples and $35,199 a year for singles.
Those are the headline benchmarks, but they assume you own your home, retire around 65, and are in reasonably good health. The number that actually matters for you is the one that funds the retirement you want, not the one ASFA models for the average Australian. This guide walks through how to land on that number, where the income comes from, and how to make it last.
What the ASFA standard tells us in 2026
ASFA publishes its Retirement Standard each quarter, breaking down what retirees actually spend across categories like food, health, transport, housing and leisure. The figures below are for retirees aged 65 to 84 who own their home outright.
| Lifestyle | Single (annual) | Couple (annual) | Couple (monthly) |
|---|---|---|---|
| Comfortable | ~$54,240 | ~$76,505 | ~$6,375 |
| Modest | ~$35,199 | ~$50,866 | ~$4,239 |
Source: ASFA Retirement Standard, December 2025 quarter. Figures are reviewed each quarter and the lump sum benchmarks were last revised in February 2026.
The comfortable budget covers private health insurance, occasional overseas travel, dining out, the ability to replace household goods, and a reasonable car. The modest budget covers essentials with some basic leisure spending, but not much room for the extras most pre-retirees picture when they think about life after work.
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.
How to work out the retirement income you actually need
Averages are a useful starting point but a poor planning tool. Two couples with identical super balances can need very different incomes depending on whether they travel, support adult children, run two cars, or have ongoing health costs. Here’s a more honest way to land on a number.
1. Start with your essential expenses
Add up what you’ll spend each month regardless of lifestyle:
- Housing costs (rates, maintenance, insurance, or rent)
- Utilities (electricity, gas, water, internet)
- Groceries and household supplies
- Healthcare (private health insurance, GP visits, prescriptions)
- Transport (fuel, public transport, vehicle running costs)
If you’re spending $3,500 a month on essentials now, you’ll likely still need around that figure in retirement, minus your commute and work-related costs.
2. Layer in lifestyle spending
This is where retirements diverge. Common categories include:
- Travel (domestic and overseas)
- Hobbies, clubs and memberships
- Dining and entertainment
- Gifts to family or financial help for adult children
- Health and fitness
An overseas trip every year typically adds $10,000 t
3. Account for inflation
Even at 2 to 3% a year, inflation compounds. A budget of $5,000 a month today is closer to $6,500 to $7,000 a month in real terms a decade from now. Building investments that grow with inflation, rather than sitting entirely in cash, is one of the bigger conversations our advisers have with clients in the first year of retirement.
4. Subtract any remaining debt
Ideally you’d be debt-free at retirement, but plenty of Australians aren’t. A $1,200 monthly mortgage repayment adds around $15,000 a year to the income drawn from super, which is a significant call on the balance.
5. Use the 70% rule as a sense check, not a target
A common rule of thumb is that you’ll need about 70% of your pre-retirement income to maintain a similar lifestyle. On a $100,000 salary, that’s roughly $70,000 a year, or about $5,800 a month. The logic is that commuting, work clothing and contributions to super drop away, but health and leisure spending rises. It’s a sense check, not a personal target. Run the numbers against your own categories and adjust from there.
How much super sits behind that income
ASFA’s lump sum benchmarks were revised upward in February 2026, the first change in three years. To fund a comfortable retirement, ASFA now estimates:
- Single: around $630,000 (up from $595,000)
- Couple: around $730,000 (up from $690,000)
Both figures assume you own your home and will receive a partial Age Pension. If you were planning around the older targets, you’re now roughly $35,000 to $40,000 short of what ASFA models as sufficient.
Scott and Phil unpacked this gap in our podcast episode Is Early Retirement a Trap? The $150K Gap Most Aussies Miss. One data point worth holding on to from that conversation: around 34% of retirement savings end up consumed by healthcare costs, and the final 24 months of life typically account for 50 to 80% of total lifetime healthcare spend. That changes how you think about the buffer above ASFA’s number, not just the number itself.
Want to see how your own balance compares? The free Wealthlab super calculator gives you a quick projection in two minutes.
Where your retirement income comes from
Most retirees fund their lifestyle from a combination of four sources rather than any single one.
Superannuation, usually via an account-based pension. This is the main income source for most retirees, offering tax-free withdrawals after 60 and flexibility over how much you draw.
The Age Pension. From 20 March 2026, the maximum Age Pension is $1,200.90 per fortnight for singles (about $31,223 a year) and $1,810.40 combined per fortnight for couples (about $47,070 a year), including the pension and energy supplements. These rates are indexed every March and September. Eligibility depends on age (currently 67), residency, and the income and assets tests run by Services Australia. Many retirees who assume they won’t qualify actually receive a part pension once their super starts drawing down.
Investments outside super. Property, shares and term deposits can top up income and provide some hedge against inflation, though each comes with its own tax and liquidity considerations.
Savings or part-time work. A growing number of retirees pick up casual or consulting work in the first few years of retirement, which can extend how long the super balance lasts. The Work Bonus lets pensioners earn up to $300 a fortnight from employment without it counting against the income test.
If you want to understand the rules around accessing your super at different ages, the ATO’s guide to super withdrawal options is a clear starting point.
Making the income last (the harder problem)
Knowing your number is the first part. Making the money last 25 to 30 years is the part most retirees underestimate. A few principles we generally find work well across the clients we see.
Open an account-based pension when you retire. Converting super into an account-based pension means earnings on the balance become tax-free after 60, and you can adjust the income you draw as your needs change. The minimum drawdown rates set by the ATO start at 4% and rise with age.
Diversify across growth and defensive assets. Going entirely conservative at retirement is one of the more common mistakes we see. Scott walked through this on the podcast Why Playing It Safe in Retirement Can Cost You More with a worked example: a couple with $500,000 in super spending $75,000 a year. A growth-oriented portfolio funded retirement to their late 90s. A conservative portfolio ran out 15 years earlier. The “safest” option wasn’t actually safe.
Review your drawdowns each year. The often-cited “4% rule” is a starting heuristic. On a $700,000 balance, drawing 4% gives you $28,000 a year. Whether that’s actually sustainable depends on your returns, fees, inflation, and how long retirement runs. We generally find that an annual review, rebalancing rather than reacting to headlines, beats a static plan.
Plan for healthcare separately. Maintaining private health insurance and keeping a buffer for out-of-pocket medical costs is one of the easier wins. Even setting aside an extra $200 to $300 a month for future health expenses takes pressure off the main budget when those costs eventually rise.
Reassess Age Pension eligibility regularly. As your super balance reduces with drawdowns, you may move from no pension into part pension, which materially changes your income picture. The thresholds also change twice a year. Many retirees miss the moment they first become eligible.
Where to go next
Two companion posts cover related angles:
- What Is a Good Monthly Retirement Income in Australia? breaks down the latest monthly figures and where most retirees actually fall in the range.
- How Much Money Do Most People Retire With covers average super balances and how to close the gap if you’re behind.
For broader planning, our retirement planning and pension and Centrelink service pages walk through how the pieces fit together.
FAQs
What retirement income do I need for a comfortable lifestyle in Australia? According to the ASFA Retirement Standard (December 2025 quarter), singles need around $4,520 a month and couples around $6,375 a month for a comfortable lifestyle, assuming home ownership. That covers private health insurance, occasional overseas travel, and a reasonable car.
What retirement income do I need if I rent? Renters typically need an additional $1,000 to $2,000 a month, depending on the city and housing type. ASFA now publishes a separate modest standard for private renters, and Commonwealth Rent Assistance may apply if you’re receiving the Age Pension.
What retirement income do I need to travel regularly? For one overseas trip a year, factor in an extra $10,000 to $15,000 a year (around $900 to $1,200 a month). The figure varies a lot by destination, length of stay, and travel style.
What retirement income do I need if I retire early? Retiring before preservation age (60 for anyone born after 1964) means funding your lifestyle without super or the Age Pension for the gap years. Plan for 25 to 30 years of income rather than the traditional 20, and build a buffer for healthcare costs, which rise faster than general inflation.
What retirement income do I need for a modest lifestyle? A modest lifestyle covers essentials and basic leisure. According to ASFA’s December 2025 quarter figures, singles need around $2,933 a month and couples around $4,239 a month. The Age Pension covers most of this for couples who own their home.
How much super do I need to generate that income? ASFA’s February 2026 lump sum benchmarks are $630,000 for singles and $730,000 for couples for a comfortable lifestyle, both assuming home ownership and partial Age Pension. For a modest lifestyle, the benchmarks are $110,000 and $120,000 respectively, because the Age Pension covers most modest-level spending.
Ready to map out your own number?
Averages are useful, but the only retirement income that matters is the one that funds yours. If you want to think through what your number looks like in practice, book a free chat with the Wealthlab team. No pressure, no jargon, and no sales pitch.
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