The cost of living in retirement
If you plan to keep enjoying your current lifestyle when you retire, it's generally suggested that you'll need to save enough to provide you with at least 70% of your current annual income.1
The full Age Pension, if you're eligible, can provide you with $31,223 per year for a single income ($1,201 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 apply to homeowners and renters
The below estimates apply to homeowners and rentersASFA's Retirement Standard estimates the budgets needed for both a 'comfortable' and 'modest' lifestyle in retirement. Both budgets assume that retirees own their own home outright and are relatively healthy.
The Retirement Standard also has a separate lifestyle budget for retirees who are renting privately. It’s set at the modest level to provide a more practical benchmark for those who’ve been unable to buy their own home. This budget includes the level of Rent Allowance available to those receiving the Age Pension.
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.
Annual lifestyle budgets for retirees aged 65 to 84
According to the Association of Superannuation Funds of Australia (ASFA), for retirees (homeowners) aged 65 to 84 to fund a comfortable lifestyle in retirement, you need:
Single
$55,923 per year
Couple
$78,566 per year
On a weekly basis, a single person needs roughly $1,071, while a couple needs around $1,505 for a comfortable retirement.
A modest retirement lifestyle - which is considered better than relying solely on the Age Pension but still only allows for basic living expenses - has an estimated annual budget of $36,434 for singles and $52,473 for couples, assuming you own your own home.2
If you’re renting in retirement, you need approximately $51,164 as a single person and $69,002 as a couple per year to fund a modest lifestyle.3
Compare different lifestyles in retirement
The below table is based on ASFA research for retirees aged around 65 to 84.
It shows the expected lifestyle expenses allowed for in a comfortable retirement, a modest retirement and a 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 | |
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Single | $55,923 | $36,434 | $31,223 |
| Couple | $78,566 | $52,473 | $47,070 |
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Superannuation balances required to retire at 67
ASFA also estimates the average super balances needed to retire at 67 to fund a comfortable and modest retirement.
To retire at 67 and achieve a comfortable retirement, you need a super balance of:
Single
$630,000
Couple
$730,000
These estimated lump sums assume you’re a homeowner, and you’ll spend all your super and other retirement savings during retirement, as well as receive a part Age Pension.
To retire at 67 and achieve a modest retirement as a homeowner, you need a super balance of $110,000 as a single person and $120,000 as a couple.
These estimated lump sums are relatively low as the Age Pension is enough to cover many of the expenses required for a modest standard of living.2
To retire at 67 and achieve a modest retirement as a private renter, you need a super balance of $340,000 as a single person and $385,000 as a couple.3
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 aged 85 and above, ASFA estimates the below annual budgets are required for a comfortable retirement:
Single
$53,656 per year
Couple
$73,970 per year
On a weekly basis, a single person needs roughly $1,028 while a couple needs around $1,417 for a comfortable retirement.
The annual cost for a modest standard of living at 85 years old and beyond is $34,374 for singles and $49,255 for couples. Both the comfortable and modest budgets assume you’re a homeowner.4
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 Moneysmart, Work out how much you need to retire, accessed July 2026
2 The Association of Superannuation Funds of Australia (ASFA), Retirement Standard, retirees aged 65-84 (homeowners), March quarter 2026.
3 The Association of Superannuation Funds of Australia (ASFA), Retirement Standard, retirees aged 65-84 (renters), March quarter 2026.
4 The Association of Superannuation Funds of Australia (ASFA), Retirement Standard, aged over 85, March quarter 2026.
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 16 July 2026.