How much super do I need?

The amount of money you need depends on the lifestyle you want to lead in retirement. Depending on your situation you could combine your super income with the Australian Government’s Age Pension to help fund your retirement.

How much super you will need is a very personal issue and comes down to a number of factors including how you would like to spend your retirement.

However, as a guide, the Association of Superannuation Funds of Australia (ASFA) tracks the cost of living in retirement. The latest figures suggest a couple wanting a comfortable lifestyle in retirement will need $70,482 each year while a single person will need $50,004 each year¹.

The Australian Government’s Age Pension can provide you with income support and access to a range of concessions.

To be eligible you must:

• be aged 65 years or older if you were born before 1 July 1952 (from 1 July 2017 the qualifying age for the Age Pension will gradually rise to 67 for those born after 1 January 1957) and
• meet an income and assets test

You can learn more about the eligibility criteria for the Age Pension on the Department of Human Services’ website. If you are eligible, you may be able to top up the income you receive from your super with Age Pension payments.

Keep in mind opening, closing or starting a Pension account through your super fund could impact how much Age Pension you receive. If you apply for the Government Age Pension, 100% of your Pension account balance will be included in the assets test.

1. ASFA Retirement standard March Quarter 2023. The figures in each case assume that the retiree(s) own their own home, are around the age of 65 and relate to expenditure by the household. This can be greater than household income after income tax where there is a drawdown on capital over the period of retirement. Single calculations are based on female figures.