How much do you actually need to retire comfortably in Australia? The Association of Superannuation Funds of Australia (ASFA) answers that question every quarter with its Retirement Standard — the most widely cited benchmark for retirement income in the country. It translates vague worries about “having enough” into concrete annual budgets and lump-sum targets, which makes it the natural starting point for building your plan.
This guide covers the latest figures and how to apply them. It sits under our retirement planning pillar and pairs with how much money you need to retire in Australia, which turns these benchmarks into your personal number.
What the ASFA Retirement Standard measures
The ASFA Retirement Standard estimates the annual income a retiree needs to fund two lifestyle tiers — modest and comfortable — based on the real spending patterns of Australian retirees. It’s built from an actual basket of goods and services (food, housing costs, energy, health, transport, leisure) and updated each quarter to track the cost of living.
Two important assumptions underpin every ASFA figure:
- The retiree owns their home outright (so no rent or mortgage in the budget).
- The retiree is in reasonably good health at the start of retirement.
If you rent, or expect significant health costs, your real number will be higher.
Modest vs comfortable
- Modest lifestyle — better than the Age Pension alone, but still fairly basic. Covers the essentials with limited discretionary spending: modest holidays, budget dining out, an older car, no frills. A modest lifestyle can be funded largely by the Age Pension plus a relatively small super balance.
- Comfortable lifestyle — a good standard of living. Includes private health insurance, regular leisure and dining, domestic travel and the occasional overseas trip, a reasonable car and the ability to replace household items as needed.
The February 2026 figures
For a homeowner retiring at 67, the current ASFA benchmarks are:
| Lifestyle | Single (per year) | Couple (per year) |
|---|---|---|
| Comfortable | $54,837 | $77,375 |
And the lump sum ASFA estimates you need at age 67 to fund a comfortable retirement — assuming you also receive a part Age Pension — has risen with cost-of-living pressures:
| Household | Lump sum needed at 67 (2026) | Previous estimate |
|---|---|---|
| Single | $630,000 | $595,000 |
| Couple | $730,000 | $690,000 |
The reason these lump sums are lower than many people expect is that they assume a part Age Pension tops up your income. Your own capital only needs to cover the gap between your target spend and what Centrelink pays.
Why the numbers keep moving
ASFA revises the Standard quarterly because the cost of a comfortable retirement is a moving target:
- Cost-of-living pressures. Elevated prices for groceries, insurance, energy and health care have pushed the required income up, and lifted the comfortable lump-sum targets from $595k/$690k to $630k/$730k.
- Age Pension indexation. The Age Pension is adjusted twice a year, which changes how much of your budget the pension covers and therefore how big a lump sum you personally need.
- Health and insurance costs. Private health premiums and out-of-pocket medical costs are a large and growing slice of a comfortable retiree’s budget.
How to use the Standard in your plan
Treat the ASFA figures as a well-researched starting point, then tailor them.
1. Pick your tier and set a target
Decide whether you’re aiming for a modest or comfortable lifestyle, then note the annual figure for your household. That’s your income goal. Convert it into a personal capital target using our how much money you need to retire walkthrough, or focus on the super side with how much super do I need to retire.
2. Check whether you’re on track
Most super funds let you compare your projected balance against the ASFA lump sums. If you’re behind, your main levers before retirement are salary sacrifice and after-tax contributions within the 2026-27 caps (concessional $32,500, non-concessional $130,000).
3. Factor in the Age Pension
Because the lump-sum estimates assume a part pension, understanding your likely entitlement matters. See Age Pension eligibility and the assets test to sense-check how much Centrelink might contribute.
4. Adjust for your circumstances
Add a buffer if you rent, plan lots of travel, want to help family, or expect higher health costs. Subtract if you’ll spend more frugally. The Standard is a guide, not a rule.
A quick sense-check
A single homeowner targeting a comfortable $54,837 a year, with a part Age Pension of around $18,000, needs to self-fund roughly $36,800 a year. Drawing about 5–6% from an account-based pension, that points to a super balance in the region of the $630,000 ASFA benchmark — which is exactly how the figure is derived.
Modest vs comfortable: which should you aim for?
Choosing your tier is really a lifestyle decision, and it’s worth understanding what separates the two in practice.
A modest retirement is noticeably better than living on the Age Pension alone, but it’s still constrained. Think of an older but reliable car, budget-friendly leisure and dining, domestic holidays only, and careful management of health costs. Because a modest lifestyle sits much closer to the Age Pension, it can be funded with a relatively small super balance on top of the pension — making it a realistic target for people who reach retirement with limited savings.
A comfortable retirement is the one most people picture: private health insurance, regular meals out, a reasonable car, a good range of leisure activities, domestic travel and an occasional overseas trip, plus the ability to replace household goods and run the heating or cooling without watching the meter. It requires meaningfully more capital, which is why the ASFA lump-sum benchmarks are built around it.
Many retirees land somewhere between the two, or move along the scale over time — spending more comfortably in the active early years of retirement and more modestly later on. There’s no obligation to pick one and stick with it; the tiers are simply reference points.
Common misunderstandings
- “I need the full lump sum in cash.” No — it’s the capital that, combined with a part pension, funds your target income over a full retirement.
- “The comfortable figure is the minimum.” It isn’t. A modest lifestyle is perfectly viable and needs far less.
- “It applies to renters too.” The figures assume you own your home; renters need more.
- “It’s fixed.” It’s revised every quarter, so check the latest release when you plan.
Related reading
Use these benchmarks alongside how much money you need to retire in Australia, then plan how to draw the income via account-based pensions and understand the safety net in the Age Pension guide. Everything ties back to the retirement planning pillar.
This article is general information only and not financial or tax advice; consider your own circumstances and speak to a licensed adviser or the ATO before acting.