The cost of living in retirement
If you plan to keep enjoying your current lifestyle when you retire, it's generally suggested that, if you own your own home, you'll need to save enough to provide you with at least 70% of your current annual income1.
The full Age Pension, if you're eligible, can provide you with $29,754 per year for a single income ($1,144 per fortnight - maximum basic rate including supplements). Read more on Services Australia's website.
However, research by the Association of Superannuation Funds of Australia (ASFA) indicates that relying solely on the Age Pension will not be enough for a comfortable retirement.
The below estimates assume you don't pay mortgage or rent
The below estimates assume you don't pay mortgage or rentASFA's Retirement Standard estimates the budget required for both a 'comfortable' retirement and a 'modest' retirement. Both budgets assume that retirees own their own home outright and are relatively healthy. If you don't own your own home, you'll need to factor in the additional expenditure to the estimates below.
If you're thinking about downsizing your family home for retirement, you may be able to contribute money from the sale into your super. Read more about downsizer contributions.
How much do you need to retire?
Most people want a comfortable retirement - whatever that looks like for them.
While this will mean different things to different people, everyone wants to be able to afford a good standard of living, with enough to spend on things like leisure activities, private health insurance and household goods.
Comfortable retirement around age 67
According to the Association of Superannuation Funds of Australia (ASFA), to achieve a comfortable retirement aged around 672, you need:
Single
$52,085 per year
Couple
$73,337 per year
On a fortnightly basis, a single person needs roughly $1,996, while a couple needs around $2,810 for a comfortable retirement.
A modest retirement, which allows for only basic activities although is better than relying only on the Age Pension, is estimated at $33,314 for singles per year, and $47,731 for couples.
Compare different lifestyles in retirement
The below table is based on ASFA research for retirees aged around 67.
It shows the expected lifestyles for a comfortable retirement, modest retirement and retirement relying on the Age Pension alone, per year.
The Age Pension annual amounts are approximate, based on maximum fortnightly rates, including supplements, as determined by Services Australia.
| Comfortable retirement | Modest retirement | Age Pension | |
|---|---|---|---|
Single | $52,085 | $33,314 | $29,754 |
| Couple | $73,337 | $47,731 | $44,855 |
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Health care and food |
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| Holidays and leisure |
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Car |
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As you get older, the budgets change
It's likely you'll need less money later in retirement.
This may be because you're no longer raising a family, paying tax on your income, making super contributions or paying off a home. Your priorities and requirements can also change as you age as you may spend more on assistance in or outside the home and medical expenses.
For people 85 and above, ASFA estimates the below amounts are required for a comfortable retirement3:
Single
$48,879 per year
Couple
$67,647 per year
On a fortnightly basis, a single person needs roughly $1,873 while a couple needs around $2,592 for a comfortable retirement.
The annual cost for a modest standard of living at 85 years old is $30,975 for singles and $44,325 for couples.
Are you on track for a comfortable retirement?
We know figuring out how to achieve a comfortable retirement can be overwhelming. Here are some possible next steps and resources to help you maximise your lifestyle in retirement.
Boost your retirement savings
Find out moreYou can take action to grow your retirement savings in several ways, including making extra contributions, combining your super to reduce the fees you pay, and salary sacrificing.
Retirement planning calculator
Use calculatorTry our retirement planning calculator for an estimate of how much you'll have when you retire, and how long it will last.
Register for a seminar or webinar
Find a seminar or webinarJoin one of our webinars or seminars to get more clarity on super, planning for retirement and some possible next steps.
1 Mercer CFA Institute Global Pension Index 2021, Pension reform in challenging times, accessed January 2024.
2 The Association of Superannuation Funds of Australia (ASFA), Retirement Standard, aged around 67, June quarter 2024.
3 The Association of Superannuation Funds of Australia (ASFA), Retirement Standard, aged over 85, June quarter 2024.
More information
- Read more about the ASFA Retirement Standard
- Keep track of your spending with the MoneySmart budget planner
- Get help with your retirement plans with our Retirement Options Service
Need help
- Call us on 13 43 72
- Use Live chat
Thank you for printing this page. Remember to come back to gesb.wa.gov.au for the latest information as our content is updated regularly. This information is correct as at 03 December 2024.