Project your total retirement income from superannuation, Age Pension, and other investments. Compare to ASFA comfortable and modest lifestyle benchmarks.
| Item | Value |
|---|
| Standard | Single (pa) | Couple (pa) |
|---|---|---|
| Comfortable lifestyle | $50,981 | $72,663 |
| Modest lifestyle | $33,134 | $47,731 |
| Super required (comfortable, single) | ~$595,000 | |
| Super required (comfortable, couple) | ~$690,000 | |
The answer depends on three variables: your desired retirement lifestyle, how long you expect to live, and what other income sources you have (Age Pension, investment property, part-time work). ASFA publishes quarterly benchmarks as the most authoritative Australian reference:
| Retirement Standard | Single (Annual) | Couple (Annual) | Super Needed (no pension) |
|---|---|---|---|
| Comfortable retirement | $51,630 | $72,663 | ~$595k (single), ~$690k (couple) |
| Modest retirement | $33,134 | $47,387 | ~$100k (pension supplements rest) |
Most Australians retire at a point between these two standards, with a combination of super drawdown and a full or partial Age Pension. Your home ownership status matters significantly — homeowners have lower essential costs and need less investment income.
The retirement calculator projects your super balance using compound growth applied to: (1) your current balance, (2) ongoing SG contributions (12% of salary), and (3) any salary sacrifice you make. Investment returns are modelled as a net-of-fees annual return, with inflation adjustment using the real return formula: Real return = ((1 + nominal) ÷ (1 + inflation)) − 1.
| Scenario (Starting age 35) | Balance Now | SG + Salary Sac | Net Return | Projected at 67 |
|---|---|---|---|---|
| Base case | $80,000 | 12% only | 7% | ~$910,000 |
| Extra $500/month salary sacrifice | $80,000 | 12% + $6k/yr | 7% | ~$1,190,000 |
| Higher earner | $150,000 | 12% of $120k | 7% | ~$1,610,000 |
| Later starter (age 45) | $60,000 | 12% of $90k | 7% | ~$640,000 |
Starting retirement savings 10 years earlier is more powerful than doubling your contribution rate. Consider: $500/month invested from age 25 at 7% p.a. reaches approximately $1.23 million by age 65. The same $500/month starting at age 35 reaches only $604,000 — less than half, for only 10 fewer years of investing. This is the compound growth effect in action.
How much super do I need to retire comfortably in Australia?
ASFA's 2025-26 benchmark for a comfortable retirement is $51,630/year for a single person and $72,663/year for a couple. To fund this entirely from super with no Age Pension, you need approximately $595,000 (single) or $690,000 (couple). Most Australians retire with a combination of super and a partial Age Pension, which significantly reduces the required balance.
What is the superannuation guarantee rate in 2025-26?
The SG rate is 12% of ordinary time earnings from 1 July 2025, paid by your employer into your nominated super fund. This is the minimum — you can add more through salary sacrifice (up to the $30,000 concessional cap including employer contributions) to accelerate retirement savings.
When can I access my superannuation?
Preservation age is 60 for anyone born after 30 June 1964. At 60, you can access super if you have retired or commenced a transition-to-retirement (TTR) income stream while still working. At 65, access is unconditional regardless of employment status.
How does inflation affect retirement savings?
Inflation erodes the real purchasing power of your savings. If your portfolio earns 7% but inflation runs at 3%, your real return is approximately 3.88% (Fisher equation). The retirement calculator accounts for this by projecting both the nominal balance and the real purchasing power equivalent in today's dollars.
What is the difference between comfortable and modest retirement in Australia?
ASFA's comfortable retirement standard ($51,630/year single) covers a broad range of leisure activities, good quality food, private health insurance, and periodic domestic travel. The modest standard ($33,134/year) provides only basic activities above the safety net. The Age Pension alone provides approximately $31,223/year for singles — near the modest standard.