It's the most googled superannuation question in Australia, and for good reason: most of us have no idea whether we're on track. The number bandied around — "you need $1 million" — is simultaneously too high for most Australians and too low for others. The real answer depends on how you want to live, when you want to retire, and whether you'll receive the aged pension.
This guide uses the latest ASFA Retirement Standard figures (2025) to give you a concrete starting point, then explains how to personalise it for your own situation.
The Association of Superannuation Funds of Australia (ASFA) publishes quarterly estimates of what different retirement lifestyles actually cost. Their March 2025 figures are the most current available and are widely used by financial planners, super funds, and the government.
| Lifestyle | Single/year | Couple/year | What it covers |
|---|---|---|---|
| Comfortable | $51,278 | $72,148 | Private health cover, regular dining out, domestic travel, reasonable car |
| Modest | $33,134 | $47,731 | Basic activities, limited dining out, infrequent travel, older car |
| Age Pension only | $29,754 | $44,898 | Basic essentials only — very tight budget |
The "comfortable" standard assumes you own your home outright at retirement — if you're still renting, add at least $15,000–$25,000 per year to these figures.
To generate the ASFA comfortable income from super alone, using a 4% annual drawdown rate (the standard financial planning rule of thumb), you'd need:
| Target income | Super needed (4% drawdown) | Notes |
|---|---|---|
| $51,278 (comfortable single) | ~$1,282,000 | Super only, no aged pension |
| $72,148 (comfortable couple) | ~$1,804,000 combined | Super only, no aged pension |
| $51,278 (comfortable single) | ~$595,000 | Super + part aged pension |
| $72,148 (comfortable couple) | ~$690,000 combined | Super + part aged pension |
The aged pension changes everything. A single retiree with $595,000 in super receives a part pension from age 67 — worth around $15,000–$20,000/yr — which significantly reduces how much their super needs to generate. The $595,000 and $690,000 figures are the official ASFA benchmarks that account for this blended approach.
The 4% drawdown rule says you can withdraw 4% of your super balance per year and — assuming a moderate investment return of around 5–6% in retirement — your balance should last 25–30 years. It's a rule of thumb, not a guarantee, but it's the starting point most Australian financial planners use.
A $700,000 balance at retirement generates roughly $28,000/year at 4%. Add the full aged pension ($29,754 in 2025–26) and you'd have $57,754/year — just above the comfortable single threshold. This is why many Australians can retire comfortably with less than $700,000 if they're eligible for a full or part pension.
Your super balance at retirement depends on six things, roughly in order of importance:
Here are some illustrative projections for a 35-year-old with $120,000 in super, planning to retire at 67, using a 7.5% return and 3% salary growth. All figures in today's dollars.
| Salary | No extra contributions | $500/mth salary sacrifice | Comfortable target? |
|---|---|---|---|
| $70,000 | ~$620,000 | ~$860,000 | With pension: ✓ yes |
| $90,000 | ~$800,000 | ~$1,080,000 | ✓ comfortably |
| $120,000 | ~$1,050,000 | ~$1,350,000 | ✓ well above target |
| $55,000 | ~$490,000 | ~$680,000 | With pension: borderline |
At $90,000 salary, sacrificing an extra $500/month into super adds approximately $280,000 to the real retirement balance over 32 years — and the after-tax cost is only around $345/month because of the tax saving. That's an incredibly efficient way to reach your target.
This is the most overlooked factor in retirement planning. Industry super funds (AustralianSuper, Hostplus, Rest) typically charge 0.5–0.9% per year. Some older retail funds (through banks and life insurers) charge 1.5–2.0%.
On a $400,000 balance, the difference between 0.5% and 1.5% fees is $4,000 per year in extra charges. Compounded over 20 years, that gap can exceed $150,000 in lost retirement savings. The APRA annual performance test and Superannuation Product Identification Number (SPIN) system make it easier than ever to compare funds — and switching takes about 10 minutes via myGov.
The age pension in 2025–26 pays $29,754/year for singles and $44,898/year for couples. You're eligible from age 67, subject to income and assets tests.
The assets test for homeowners: you can hold up to $314,000 in assets (excluding your home) and still receive the full pension. The pension phases out at around $695,500 for singles. This means many Australians with $500,000–$600,000 in super will receive at least a part pension — significantly reducing how much their super needs to generate.
The ASFA benchmarks are a starting point, but your target is personal. Consider:
Enter your age, salary, current balance and retirement age to see your projected balance — and whether you're on track for a comfortable retirement.
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