How much super will I need?
Written and accurate as at: Aug 22, 2018 Current Stats & Facts
Many of us will spend more than a quarter of our life retired, as people are now living until an average age of 86 years (if you’re male) and 89 years (if you’re female). Life expectancy is expected to rise to 91 for males and 93 for females by 2050. So, you might need a lot more money for your retirement than you think. Unless you’re counting on a lotto win or growing your own personal money tree, super can help you enjoy your retired days by allowing you to maintain a good standard of living, which isn’t achievable by receiving just the Age Pension.
Did you know?
Will your retirement live up to your daydreams? According to the Australian Bureau of Statistics (2018), currently:
around 1.8 million people rely mainly on the Age Pension for their income in retirement
around 575,000 people rely mainly on superannuation income
in 2011-12, 50 per cent of retiree couples had an annual income of less than $28,260 a year
in 2011-12, 50 per cent of single retirees had an annual income of less than $21,700 a year.
How much super will I need?
According to the Association of Superannuation Funds of Australia’s Retirement Standard, to have a ‘comfortable’ retirement, single people will need $545,000 in retirement savings, and couples will need $640,000. You can use this guide to estimate how much money you’ll need to have a ‘comfortable’ or ‘modest’ retirement. See the box below for more information. The Standard is updated four times a year to take into consideration the rising price of items like food and utility bills, as well as changing lifestyle expectations and spending habits. The Standard includes the cost of things such as health, communication, clothing, travel and household goods.
How much does it cost to life a comfortable lifestyle?
| Comfortable | Modest | Age Pension | |
| Single | $42,764 per year | $27,368 per year | $21,222 per year * |
| Couple | $60,264 per year | $39,353 per year | $31,995 per year * |
| Home maintenance | Replace kitchen and bathroom over 20 years | No budget for home improvements. Can do repairs, but can’t replace kitchen or bathroom | No budget to fix home problems like a leaky roof |
| Personal costs | Better quality and larger number of household items and appliances and higher cost hairdressing | Limited number of household items and appliances and budget haircuts | Less frequent haircuts or getting a friend to cut your hair |
| Household costs | Can run air conditioning | Need to watch utility costs | Less heating in winter |
| Entertainment | Restaurant dining, good range & quality of food | Take out and occasional cheap restaurants | Only club special meals or inexpensive takeaway |
| Technology | Fast internet connection, big data allowance and large talk and text allowance | Limited talk and text, modest internet data allowance | Very basic phone and internet package |
| Clothing | Good clothes | Reasonable clothes | Basic clothes |
| Travel | Domestic and occasional overseas holidays | One holiday in Australia or a few short breaks | Even shorter breaks or day trips in your own city |
| Health | Top level private health insurance | Basic private health insurance, limited gap payments | No private health insurance |
| Transport | Owning a reasonable car | Owning a cheaper more basic car | No car or, if you have a car, it will be a struggle to afford repairs |
| Leisure | Take part in a range of regular leisure activities | One leisure activity infrequently, some trips to the cinema or the like | Only taking part in no cost or very low-cost leisure activities. Rare trips to the cinema |
* Base rate before payment of supplements.