Retirement could last 25–30 years or more … Plan your retirement income with confidence.

Retirement planning in Australia is complex. Super rules, Age Pension eligibility and tax strategies all affect how much income you can generate in retirement. So it is important that you get a good understanding of this.

Financial decisions that you make before and during retirement may affect your income, lifestyle and security for decades. Questions like these often come up:

How much super do I need to retire?
Will my savings last long enough?
Can I retire on $1 million?
How does the Age Pension work?

How Retirement Income Is Built in Australia

Many Australians assume retirement income comes entirely from their super.

In reality, retirement income is usually built from multiple sources working together.

Most Australians fund retirement using a combination of superannuation, the Age Pension and personal investments.

Can You Retire Yet?

Many Australians approaching retirement are unsure about three key questions:

• How long will my super last?

• Will I qualify for the Age Pension?

• How much income can I generate each year?

These questions can have a huge impact on when you retire and how comfortable retirement feels.

Here is a simple example of a couple aged 60 with:

• $750,000 in super
• their home paid off

They may be able to generate income from:

• Superannuation income streams
• Age Pension (when eligible)
• Personal savings or investments

The exact outcome depends on factors such as spending levels, investment returns and Age Pension eligibility.

This Is Where Retirement Planning Makes a Difference

A structured retirement plan can help you:

✓ understand how long your super may last
✓ maximise Age Pension entitlements
✓ reduce tax in retirement
✓ generate a stable retirement income

Not sure if you can retire yet? Book a retirement planning consultation and we’ll help you understand:

• How long your super may last

• Whether you may qualify for the Age Pension

• How much income you could generate

A Quick Retirement Reality Check

According to the ASFA Retirement Standard a comfortable retirement costs about:

$54,840 per year for singles
$77,375 per year for couples

Other important realities:

Retirement may last 25–30 years or more
Inflation can significantly increase living costs
Many retirees receive part Age Pension payments

Understanding how these factors affect your situation is key to building a retirement strategy.

Who Retirement Planning Is For

This service is designed for people who are:

Within 10 years of retirement
Recently retired and reviewing their income strategy
Unsure how long their super may last
Wanting to understand the Age Pension
Looking for a clear strategy to turn savings into income

Many of our clients have super balances between $300,000 and $2 million.

This guide explains the key parts of retirement planning in Australia, and how super, investments and the Age Pension work together to support your income in retirement.

The Three Pillars of Retirement Income in Australia

Most Australians fund their retirement using a combination of three sources:

Income Source	What It Does
Superannuation	Primary retirement savings
Age Pension	Government safety net
Investments	Additional income and flexibility

1. Superannuation

Super is the primary retirement savings system in Australia. Throughout your working life, employers contribute to your super fund. These contributions are invested and grow over time.

When you retire, super can be converted into a retirement income stream to support your lifestyle.

2. The Age Pension

The Age Pension provides a government-funded income for eligible retirees.

Many Australians assume they won’t qualify, but a large number of retirees receive at least a part Age Pension.

This can provide:

Additional income
Concession cards
Healthcare discounts
Utility savings

3. Personal Savings and Investments

Many retirees also have savings outside of super, including:

Investment properties
Shares
Managed funds
Cash savings

These assets can provide additional income and financial flexibility during retirement.

Can You Retire on $1 Million?

Many Australians approaching retirement have around $1 million in super and investments.

For many people, this can provide a comfortable retirement — particularly for homeowners who qualify for some Age Pension support. However, how long $1 million lasts depends on factors such as:

Your retirement spending
Investment returns
Inflation
Your retirement age
How long you live

How Long Will Your Retirement Savings Last?

Australians are living longer than ever. It’s not unusual for retirement to last 25–30 years or more. That means your savings need to support you for several decades.

Your retirement income usually comes from a combination of:

Investment returns
Super withdrawals
Age Pension payments

The Biggest Risks in Retirement

Retirement planning involves managing several important risks.

Longevity Risk: Living longer than expected and running out of money.

Inflation Risk: Rising living costs reducing your spending power.

Market Risk: Investment markets fluctuating over time.

Spending Risk: Withdrawing too much too early in retirement.

Understanding these risks helps retirees make better financial decisions.

Creating a Retirement Income Strategy

Retirement planning isn’t just about building savings. It’s about creating a strategy for turning those savings into reliable income.

This may involve:

Structuring superannuation pensions
Coordinating super with the Age Pension
Creating a sustainable withdrawal strategy
Managing investment risk
Planning for inflation

A well-designed strategy helps ensure your savings can support your lifestyle for decades.

Retirement Planning Resources

Explore our retirement guides:

These guides can help you better understand the key decisions involved in planning a successful retirement.

Are You Approaching Retirement?

If you are within 10 years of retirement, understanding how your super and investments will support your income is an important step.

A personalised retirement plan can help you understand:

How long your savings may last
The income your super could generate
Whether you may qualify for the Age Pension
The investment strategy suited to your goals

A clear plan can help you approach retirement with confidence and peace of mind.

Retirement Advice Experience

Our Certified Financial Advisers Cameron Teague and Tim Poole regularly help clients:

Transition from full-time work to retirement
Structure superannuation income streams
Understand Age Pension eligibility
Create investment strategies designed for retirement income

Retirement planning involves complex decisions, and having a structured strategy can help ensure your savings support your lifestyle for decades.

Retirement Financial Planning in Australia

Planning your retirement income is one of the most important financial decisions you will make.

A retirement financial plan can help you understand:

• How long your super may last
• How the Age Pension may supplement your income
• How to structure investments tax efficiently
• How much income you may be able to generate each year

At CTWealth, retirement planning focuses on helping Australians transition from accumulating wealth to generating a reliable retirement income.

For many people this includes coordinating:

• superannuation income streams
• Age Pension entitlements
• investment income
• tax-efficient withdrawal strategies

The goal is simple: creating a sustainable retirement income that supports your lifestyle for the long term.

Thinking about retirement in the next 5–10 years?

A retirement planning consultation can help you understand:

✓ when you may be able to retire
✓ how long your super may last
✓ how the Age Pension may support your income

Book a retirement planning consultation today.

General information disclaimer:

This page provides general information only and does not take into account your objectives, financial situation or needs. Consider seeking personal financial advice and/or tax advice before making decisions.

The figures used in this article are examples only and rely on a number of assumptions including investment returns, inflation and retirement spending. Actual outcomes will vary depending on individual circumstances.

Retirement Planning FAQ

How much super do I need to retire?

For many Australians a comfortable retirement requires around $600k–$700k per person, depending on lifestyle and Age Pension eligibility.

Can I retire at 60?

Many Australians can access super at 60, but retirement income planning is essential to ensure savings last.

Will I get the Age Pension?

Eligibility depends on your assets, income and age.

Retirement planning is the process of identifying your preferred retirement age, the retirement income that you will need and any capital expenditure requirements. Then, putting in a plan in place to achieve it, so that you can live your ideal retirement lifestyle.

Your retirement plan may also include a provision for the intergenerational transfer of wealth.

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 1^st 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 $77,735 per annum (Dec 2025 quarter).

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.

When is the right time to start planning your retirement?

By effectively planning for your retirement, you will have the confidence to retire knowing that you will be able to comfortable achieve your ideal lifestyle in this next chapter of your life.

Ideally, preparing for retirement begins at least 10 years out from your retirement date.

What will your retirement expenses be?

Planning your upcoming retirement?

You’ve been working throughout of your life, saving, and building your super so that you can enjoy life more when you stop working.

Depending on when you stop working, you might be retired for 20 years or more. So it is important to consider what your retirement expenses will be.

Everyone’s lifestyle will be different but here are a few things to consider:

• Housing: do you own your own house or rent? Think about what this will cost in the future. Are there renovations or upkeep expenses that you should factor in? You might consider downsizing if the family home is no longer suitable.

• Children and family: do you plan to offer additional financial support?

• Health and wellbeing: you might need to set aside more money for medical expenses, medical insurance and preventative health checks.

• Car: consider maintenance costs for your car. Will you need a new car in the next 10–20 years? What is the cost of your car maintenance?

• Daily travel expenses: if you’re not travelling to and from work every day, you might find you save on public transport and parking costs.

• Other expenses: will you have money set aside to cover unforeseen expenses and emergencies? What won’t you need anymore?

• Hobbies: you may already have some, or you might use your spare time to learn something new. Hobbies are a great way to keep in touch with friends and meet new people.

• Travel: You might want to do the big lap around the country, or explore the world.

• Activities with family and friends: social outings are a big part of most people’s lives. You might find you’re busier than ever once you’ve got more downtime.

• Volunteer: many retirees find volunteer work a rewarding way to use their spare time.

• Working part-time: you might prefer to keep working, or to start a new or different job once you’ve retired.

Most retirees receive income from at least a couple of sources. These may include the money in your super account and also investments outside super. The money you live on in retirement may also include some kind of pension payment or allowance from the Government.

The challenge is, many people find that even if they’re eligible for the Government Age Pension, it may not be quite enough to live comfortably.

One option is to use your super to top up any Age Pension payments that you’re eligible for. This will give you more income to cover your retirement expenses.

Can I make additional contributions to my Super pre retirement?

Yes, you can and it something that you should seriously consider.

Small amounts can make a real difference to your super balance. Adding a few extra dollars today means that you’ll have more savings down the road.

Making additional contributions to your super can also benefit you now, not just in the future, because making voluntary contributions could mean that you pay less tax overall.

The earlier that you add, the more that it could grow over time.

You can add to your Super in different ways:

Salary sacrifice (before tax)
After-tax contributions
Downsizer contributions
Spouse contributions

Will I get the Government Aged Pension when I retire?

If you are planning for your retirement, you will be wondering if you will get the Government Aged Pension.

The Government Age Pension is a regular fortnightly income, paid by the Government via Centrelink. It is designed to help eligible older Australians pay for basic living expenses.

If you’re eligible, it can supplement payments from your super and provide an additional income once you’ve stopped working. The great news is, you don’t have to spend all of your super before you can access it.

Before you can receive your first payment, you’ll need to meet age and residential requirements set by the Government. If you meet these conditions, you’ll then need to pass the Assets test and the Income test. These are used to determine your eligibility and the Government Age Pension payment amount you may receive.

If you’re approaching retirement, it’s a good idea to get some advice about your finances and to plan ahead. Everyone’s circumstances are unique so personal advice is required.

How do I access my Super when I retire?

Some of your options to access your super include:

Start an income stream

A retirement income stream turns your super into regular tax-free income payments. You can change your payment amount at any time, and your money stays invested in your superannuation account so your savings continue to grow.

Withdraw a lump sum

You could choose to alternatively take your superannuation as a lump sum.

You don’t have to take it all at once. As an example, you could decide to leave some of it in your super account and make withdrawals as you need it. You need to keep in mind that taking a lump sum can have tax and Centrelink implications. Also, the returns on investments outside super are usually taxable.

Lump sum and income stream

Another option is to take out a lump sum, and then to use the rest of your money to start an income stream pension.

This could suit you if you plan on buying a new home, going on a holiday, or you want to pay off some debt before you start taking a regular income from your super.

How do account based pensions work?

With an account based pension, you can turn your super into a regular income.

You can change how much income you receive and how often you want it as long as you meet government set minimum payment amounts. Payments are tax free once you turn 60.

If you need additional fund, to pay for bills, renovations, a car or holidays, you can withdraw extra money whenever you need it.

What is a Transition To Retirement (TTR)?

Wondering what transition to retirement (TTR) is?

It is a strategy recognised by the Government that allows you to access some of your super, while you’re still working. You could use it to work less and access your super to top up your reduced take home pay.

Transition to retirement is complex and everyone’s circumstances are unique so personal advice is required.

Are you entitled to a Seniors Card?

Are you approaching your 60th birthday and wondering if you will get a Seniors Card?

Seniors Cards are available to Australian residents aged 60 and over who are not working full-time, no matter what their income is.

The cards provide discounts on goods and services like transport, accommodation, restaurants, entertainment, financial products, furniture and electrical goods.

Each State and Territory Government issues its own Seniors Card and determines who is eligible. Contact your local office to apply for a card.

Should I combine my Super before retiring?

If you have more than one Super account, you could be wasting money paying more than one set of fees.

The more fees you pay, the less super for you.

Check your Super using myGov, or by phoning the ATO’s lost super search line on 13 28 65.

What should your insurance be at retirement?

Most super funds like Australian Super, Australian Retirement Trust, QSuper, Hostplus and Cbus, offer automatic insurance to protect your income and the people that mean the most to you.

The thing is, how do you know if the type and level of cover that you have is right for your? How much cover do you need? As you get older, your insurance needs will change, so you might find yourself with too much, too little or the wrong type of cover.

Your cover might need to change if:

You get married or divorced
You start or end a de facto relationship
Your adult children move out or you add to your family (including step children)
You take out a mortgage to purchase or build your main principle place of residence
Your spouse, de facto or other dependents dies
Your job or salary changes

You can choose the types of cover that you need:

Death cover (also known as life insurance). This can help ease financial stress by paying a lump sum to your beneficiaries if you die.
Total & Permanent Disablement (TPD) Cover. This can pay you a lump sum if you become totally and permanently disabled and no longer able to work.
Income Protection. This can help if you become ill or injured and can’t work temporarily. You can apply to increase, reduce or cancel your Income Protection at any time to suit your needs.

Why is important to nominate beneficiaries?

It is very important to nominate beneficiaries. You may not realise, that even if you have a valid Will and you specify where you want your assets to go, this may not apply to your super.

That’s why it’s important to nominate a beneficiary, so that your Super fund knows who you’d like to receive your super in the event of your death.

There are a few ways you can do this:

Non-binding nominations: A non-binding nomination is not legally binding, but it lets your Super fund know who you’d prefer to receive your super if you die. So although they will take your nomination into account, in the end the Super fund have to decide who your account would be paid to according to your situation at the time and in accordance with the law.

Binding nominations: A binding nomination provides more certainty over who receives your death benefit. If you make a binding nomination, your Super fund will pay your account to the person/s you’ve nominated … as long as your nomination is valid at the time of your death. A binding nomination is valid if it was made within three years of your death, all the individuals nominated are alive at the time of your death (ie, if you nominated four beneficiaries and one was no longer alive at the time of your death, your nomination would be invalid), and all the individuals nominated are eligible.

You can make a non-binding or binding nomination, plus you have an additional option to nominate a reversionary beneficiary. This means whoever you nominate can then choose to receive the balance of your account as an income in the event of your death. If so, they would receive regular payments from your account until the balance reaches $0.

Your beneficiaries can be:

• Your spouse or partner

• Your children

• Other financial dependants

• Your estate or legal personal representative.

What is your retirement age?

Are you wondering what your retirement age is?

Technically retirement is whenever you decide it’s time to cease working in paid employment. Accessing your super and the Government Age Pension however are set at specific pre determined dates.

For anyone born after the 1st July 1964 your preservation age is 60. This is the age when you can access your super under normal retirement rules once you reach a trigger of release.

For anyone born after 1st January 1957 your Age Pension age is 67.

You may also need to meet other criteria to access your super or be eligible for the Government Age Pension.

Your retirement age may not be the same as your preservation age or your pension age.

Your preservation age is when you can access your super and your pension age is when you could qualify or be eligible for the Government Age Pension, also known as the qualifying or eligibility age.

Your preservation age and your ‘pension age’ are set by the government. It depends on your birthdate, and it is very common to confuse the two.

It is a tax planning strategy where one member of a couple contributes into their spouse’s superannuation account.

This can be done by providing the contributor with a personal tax offset for doing so.

The maximum spouse offset amount available is $540 per financial year. It is based on the receiving spouse’s income and the amount contributed.

There are rules around the amount that can be contributed and claimed as a spouse contribution tax offset strategy.

Super earnings are tax free after 60 only if you have met the definition of retirement or attained age 65 and have used your super to commence an account-based pension income stream.

It is important to note that just turning age 60 does not signify tax-free super investment earnings. However, age 60 generally does mean that super withdrawals are received tax free.

Have you got your thinking cap on about how to avoid capital gains when you retire?

A strategy that you could consider is making deductible contributions to super to offset capital gains tax if the asset sold was owned in your personal name.

Consider waiting until you have no other taxable income before you sell the investment, in order to reduce the impact of CGT.

Otherwise, if the asset is owned within super, you could consider converting your super into the pension phase prior to selling the investment.

Everyone’s situation is different so to determine your required Super balance and retirement plan, book an initial 1 hour retirement planning consultation with Cameron Teague.

The fee for this consultation is $440.

Retirement Planning Australia: Super & Age Pension Guide (2026)