ASFA (Association of Superannuation Funds of Australia) distinguishes between two retirement lifestyle standards:

• Modest: Covers basics and some small “extras”, but limited expenditure on discretionary things.
• Comfortable: As above, plus more discretionary spending, private health cover, more regular travel, and greater flexibility. (ASFA)

To “Retire Comfortably” is more than just a dream; it means being able to maintain a good standard of living. Key components include:

• Owning (or having paid off) your home, or at least having low housing costs.
• Good daily living expenses: food, utilities, transport, clothing.
• Private health insurance, or good access to healthcare without financial stress.
• Leisure & social activities: travelling (domestic or occasional overseas), hobbies, entertainment.
• Having a budget helps you retire comfortably.
• Comfortable durable goods: car, electronics, good furniture, and maintaining the home.
• Some buffer for unexpected events (e.g. health issues, home repairs).

Current ASFA / Other Guideline Figures (2024–25 / 2025–26)

Evaluating your financial needs and potential sources of income will help you achieve a comfortable retirement.

These are benchmarks (not guarantees) to help people assess whether their savings & income may suffice for what they consider comfortable or modest.

Scenario	Annual living cost (comfortable)¹	Annual cost (modest)¹	Lump sum in super needed for comfortable retirement²
Single home-owner, aged ~65-84	~ A$52,383–A$53,289	~ A$32,930–A$34,522	~$595,000 (qsuper.qld.gov.au)
Couple home-owners, aged ~65-84	~ A$73,031–A$75,319 (joint)	~ A$47,475–A$49,992	~$690,000 (combined) (mlc.com.au)

Footnotes:

1. These annual living costs assume owning your home, covering health, leisure, etc. Modest is more basic: fewer discretionary items. (qsuper.qld.gov.au)
2. The lump sum needed in super to generate enough income (plus combining with part Age Pension) to support the comfortable lifestyle. ASFA’s standard assumes retirement around age 67. (ASFA)

Also: the Superannuation Guarantee (SG) rate (i.e. what your employer must contribute to your super) is increasing to 12% from 1 July 2025, up from 11.5%. (Australian Taxation Office)

Key Factors Influencing Retirement Savings & Lifestyle

Ensuring your financial literacy is crucial in your journey to retire comfortably. Here are the main variables that can make a big difference and are a major factor in determining if you retire comfortably.:

1. Home ownership vs Renting / Mortgage
   • Owning your home (especially paying it off) reduces recurring housing cost burdens (rent or mortgage repayments, maintenance). ASFA assumes home-owning for its standard “comfortable” budgets. (ASFA)
   • If you're renting, your annual costs rise significantly, so you’ll need more in savings or income.
2. Life expectancy / how long you’ll need income
   • The longer you live, the more years you need to fund. Average life expectancy at age 65 in Australia is about 85.3 years for males, 88 years for females. (ASFA)
   • But many people live longer than the average; planning for “long tail” risk (living to 90s) is prudent.
3. Superannuation contributions (both mandatory & voluntary)
   • The Super Guarantee increases gradually; from 1 July 2025 it will be 12% of ordinary earnings. (Australian Taxation Office)
   • Voluntary contributions (salary sacrifice, additional contributions) can help close gaps especially if you had periods of low contributions or breaks from work.
4. Government support: Age Pension and other benefits
   • The Age Pension is a safety net; many retirees receive either full or partial pension. (australiansuper.com)
   • The amount you receive depends on your income, assets, whether you own your home, whether you're single or partnered. (Services Australia)
5. Inflation, rising costs (health, utilities, leisure etc.)
   • Costs of food, electricity, health care tend to increase faster than some general inflation measures. ASFA figures show rising costs in key essentials. (ASFA)
6. Tax, fees and investment returns
   • How well the super investments perform, what fees are paid, tax concessions for super, etc, all matter. Poor investment returns or high fees can erode savings over time.
7. Personal health, lifestyle choices, unexpected events
   • If you have higher medical needs or require aged care, costs can increase sharply.
   • Travel, hobbies etc vary by person. What one considers “comfortable” another might consider extravagant.

Why Financial Planning Matters if You Are to Retire Comfortably

Financial planning is the key to a comfortable retirement.

Because of the variables above, no one-size-fits-all plan works. Factors that cause variation:

• Whether you retire earlier or later: retiring later (if possible) means fewer years to fund, and more years contributing to super.
• Whether you've had breaks in earnings (e.g. caring responsibilities, part-time work) which reduce contributions.
• Where you live (urban/rural), cost of living, property prices etc.
• Health status: both expected need and capacity to work longer.
• Risk tolerance (how much you want in “safe” investments vs higher-return/higher-risk ones).

Without planning, people risk under-saving, being overly reliant on the Age Pension, or having to reduce lifestyle later. Planning helps you set realistic targets (e.g. “I want to do overseas travel every 2 years”, “I want private health cover”, etc) and measure whether your current savings trajectory will support that.

Current Guidelines & Figures — ASFA Retirement Standard & Others

Researching and putting together the data can help you make informed decisions to retire comfortably:

• ASFA’s budget estimates (June/September quarter 2025) for comfortable lifestyle for home-owning retirees aged 65-84:
  • Single: A$53,289/year (ASFA)
  • Couple: A$75,319/year (joint) (ASFA)
• For modest lifestyle:
  • Single: ~A$34,522/year (ASFA)
  • Couple: ~A$49,992/year (ASFA)
• Lump sums required (home owner, age ~67) for “comfortable” retirement:
  • Single: ~A$595,000 (ASFA)
  • Couple: ~A$690,000 (ASFA)
• Life expectancy data: average life expectancy at age 65 is ~85.3 for males, ~88 for females. (ASFA)
• Super Guarantee rate: rising to 12% from 1 July 2025. (Australian Taxation Office)

Planning for Longer Life Spans & “Tail Risk”

Because many people (especially women) live well beyond average life expectancy, planning only to the average can leave you exposed.

• For example, some financial planners and sources assume “exhaustion” of savings at around age 92, even though average life expectancy is lower. That gives margin for those who live longer. (ASFA)
• Also: standard deviations around life expectancy are non-trivial. A 65-year-old might expect to live 20+ years, but many will exceed that. (ASFA)

Including a safety buffer in your planning (e.g. a reserve, more savings than minimally needed) is advisable.

Practical Tips to Boost Retirement Savings & Improve Outcomes

Here are concrete actions individuals can take:

1. Maximise Superannuation Contributions
   • Be sure your employer is paying the full Super Guarantee.
   • If possible, make voluntary employer or personal (salary sacrifice) contributions. These can have tax advantages.
   • Take advantage of catch-up opportunities if you had periods of low income.
2. Start Early; Delay Retirement if Possible
   • The earlier you begin saving more, the more you benefit from compounding. Even small additional contributions in your 30s or 40s make a big difference.
   • Working a few extra years not only adds years of contributions but also shortens the period your savings must support.
3. Diversify Income Streams
   • Don’t rely solely on super and Age Pension. Think about investments (shares, property, term deposits), part-time work, passive income sources.
   • Consider whether your home equity can be used (downsizing, reverse mortgages in some cases) though these come with trade-offs.
4. Control Costs / Lifestyle Choices
   • Where you retire (location), whether you maintain a big mortgage or live debt-free, and lifestyle expectations (travel, etc.) greatly affect required savings.
   • If possible, reduce or eliminate debt before retirement.
5. Plan for Health & Aged Care
   • Health costs tend to rise with age, including private health insurance, co-payments, etc. Factor in reserves.
   • Consider insurance and savings specifically earmarked for potential aged care or health shocks.
6. Regularly Review Your Plan; Adjust for Inflation & Changing Circumstances
   • Track where you’re at vs your target. If inflation or cost of living rises faster than expected, adjust contributions or budget.
   • Life events (ill health, unemployment, caring roles) may require changing the plan.
7. Seek Professional Advice
   • A financial planner can help you model your own scenarios, taking into account your health, expected lifespan, investment risk tolerance, lifestyle goals.
   • Advice is especially useful when dealing with tax issues, investment portfolio design, and non-super saving/investments.

Summary & Take-Home Messages

• • “Comfortable retirement” for a single homeowner in Australia currently means something like A$52,000-53,000/year; for a couple about A$73,000-75,000/year (homeowning, aged 65-84).
  • To support that lifestyle, current benchmarks suggest needing ~A$595,000 (single) or ~A$690,000 (couple) in superannuation (plus the Age Pension).
  • Key variables that change how much you need: housing status, how long you live, contributions made over your life, investment returns, health status, lifestyle choices.

Understanding your income sources can help you retire comfortably.

• • The Super Guarantee rate increasing to 12% from 1 July 2025 is significant — a lever many people have some control over (through ensuring contributions are made properly, adding more if possible).
  • Planning for longer life, setting realistic budgets, diversifying income, and getting advice are essential.

Seeking professional advice may be beneficial to retire comfortably.

References

Always monitor your retirement savings to ensure you retire comfortably.

1. 1. ASFA Retirement Standard – “Retirement Standard Explainer” (ASFA) (ASFA)

Understanding the factors affecting retirement can help you retire comfortably.

1. 1. ASFA / QSuper article – “How much super do you need to retire comfortably?” (qsuper.qld.gov.au)
   2. Superannuation Guarantee rate schedule (ATO) documentation (Australian Taxation Office)
   3. Life expectancy & superannuation balances statistics — “An update on superannuation account balances” (ASFA) (ASFA)

Planning for inflation is essential if you wish to retire comfortably.

1. 1. MLC / other financial institutions’ guides to what “comfortable” & “modest” lifestyles entail (mlc.com.au)