How Much Super Do I Need to Retire?
It's one of the most common retirement planning questions:
"How much super do I need to retire?"
$500,000?
$1 million?
$2 million?
The answer is less straightforward than many people expect.
There is no universal super balance that guarantees a comfortable retirement because retirement is ultimately a spending question, not just a savings question.
Start With the Retirement You Want
Before calculating a target super balance, ask:
What do I actually want retirement to look like?
Consider:
housing
travel
cars
private health insurance
dining and entertainment
hobbies
helping children or grandchildren
home renovations
major one-off expenses.
Someone wanting $50,000 a year will have very different capital requirements from someone wanting $120,000.
What Does a "Comfortable Retirement" Cost?
The ASFA Retirement Standard provides a useful Australian benchmark.
As at the March quarter of 2026, ASFA estimates a comfortable lifestyle for a homeowner at approximately $55,923 per year for a single person and $78,566 for a couple.
ASFA's corresponding estimated lump sums at age 67 are approximately $630,000 for a single and $730,000 for a couple, assuming eligibility for some Age Pension.
These figures are useful benchmarks — not personalised retirement targets.
Why You Might Need More — or Less
Your required balance will depend on factors including:
when you retire
whether you own your home
how much you spend
other investments
Age Pension eligibility
investment returns
inflation
longevity
whether you want to leave an inheritance.
If you own investment property or substantial assets outside super, for example, your super balance alone doesn't tell the full story.
Likewise, someone who rents in retirement may face substantially different expenses from someone who owns their home outright.
Work Backwards From Income
Instead of beginning with a round-number target such as "$1 million", start with your desired lifestyle.
For example:
Desired annual retirement spending: $90,000
Then identify possible sources of income:
account-based pension
Age Pension, if eligible
investment income
rental income
cash
part-time work.
You can then model how much capital may be required to support the gap.
Don't Forget Inflation
A retirement income target of $80,000 today won't necessarily buy the same lifestyle in 15 years.
Inflation means the cost of goods and services generally increases over time.
This is one reason retirement projections need to look forward rather than simply multiply today's annual spending by an arbitrary number of years.
Retirement Could Last Decades
Someone retiring in their early 60s may need their assets to support them for 25 or 30 years — potentially longer.
That means retirement planning has to balance two competing risks:
spending too much too quickly and being so cautious that you unnecessarily restrict your lifestyle.
A retirement strategy can help determine an appropriate balance between spending, investing and retaining capital.
How Much Super Do You Need to Retire in Perth?
For people approaching retirement in Subiaco and across Perth, the better question isn't simply:
"How much super should I have?"
It's:
"How much income do I want in retirement, where will that income come from, and how long does it need to last?"
Once those questions are answered, your target becomes much more meaningful.
This article contains general information only and does not take into account your objectives, financial situation or needs.