How much do you need to retire?

When planning on retiring, think about the lifestyle that you want.  You might be planning on becoming a grey nomad dong the big lap, travelling often overseas, spending more time with family, volunteering or learning new skills.

The amount of super that that you will need may surprise you!

This is the one question that we are asked daily in our practice.  It is also the question that seems to cause the most angst with clients when making the decision to retire.


The Association of Superannuation Funds of Australia Limited (ASFA), regularly compiles a Retirement Standard report setting out how much is required for both couples and singles to live a comfortable and modest lifestyle in retirement, linked here.

The report consists of a detailed budget breakdown for retirees before and after age 85.

One issue that we find is often overlooked by clients when determining how much they need to retire, is the existence of the Age Pension here in Australia. 

This is an Assets and Income tested pension available to all eligible retirees over age pension age, currently age 67 for those born after the 1st January 1957.

Clients will often not be entitled to the age pension immediately at age 67, however they will become eligible as their retirement assets are accessed through the drawdown phase.

It is the existence of the Age Pension and its tendency to naturally increase over time as assets reduce, that makes the amount needed to retire on a lot less than most people think.

As of writing this article the amount a couple needs to live a comfortable life is $69,691 per annum.

Here at CTWealth, we have run modelling to determine how much super a couple would need if they were to retire at age 60 with their own home paid off and live on $70,000 per annum indexed each year at 2.5% with the funds to be exhausted at age 90.

Assuming both members of a couple are aged 60 now, a balance of around $400,000 each in a super fund returning 6.50% per annum, when the Age Pension is factored in, is expected to achieve this goal.

This is substantially less than many people think.

Everyone’s situation is different so to determine your required super balance and retirement plan.

To book a complimentary ten minute phone consultation with Cameron Teague, our Certified Financial Planner, click on the link below.