ASFA Retirement Standard 2026: How Much Super for a Comfortable Retirement

About the Association of Superannuation Funds of Australia (ASFA) publishes the Retirement Standard quarterly, estimating how much retirees need for different lifestyles. As of March 2026, the targets at age 67 are: Comfortable lifestyle — $595,000 (single) or $690,000 (couple). This covers a good standard of living including private health insurance, a reasonable car, regular domestic travel, good food and wine, leisure activities, and home renovations.

Modest lifestyle — approximately $100,000 (single) or $120,000 (couple). This covers basic living expenses, budget food, public transport, limited leisure, and reliance on the Age Pension for most income.

These figures assume you own your home outright — if you're renting in retirement, you'll need significantly more to cover housing costs. The gap between modest and comfortable is enormous — approximately $25,000 per year in spending for a single retiree.

ASFA's comfortable retirement budget for a single person includes approximately $48,000–$50,000 per year in spending. This breaks down to roughly: housing (rates, maintenance, insurance) $6,500, energy/comms $4,500, food $9,000, clothing $2,500, health/insurance $7,000, transport $8,000, leisure $10,000, household goods $2,500. For a couple, the annual budget is approximately $68,000–$70,000.

This lifestyle includes: replacing your car every 5–7 years, domestic holidays 3–4 times per year, good quality food and wine, private health insurance, regular club memberships and social activities, and occasional international travel. It doesn't include luxury spending — no business class flights, no expensive overseas holidays every year, and no supporting adult children financially.

If your retirement aspirations exceed the comfortable standard, you'll need more than $595K.

For the Age Pension provides a baseline income for retirees who meet income and asset tests. As of March 2026, the maximum Age Pension is approximately $29,000 per year for a single person and $44,000 per year for a couple (combined). This is enough for ASFA's modest retirement but falls well short of the comfortable standard.

Most retirees receive some Age Pension — only about 30% of retirees are fully self-funded. The assets test free area is approximately $301,750 for a homeowner single and $451,500 for a homeowner couple.

Above these thresholds, the pension reduces by $3 per fortnight for every $1,000 in assets. Your super balance counts as an asset once you reach Age Pension age.

Effectively, having super doesn't eliminate the pension — it supplements it.

Many retirees with $300K–$500K in super receive a part pension plus super income, landing somewhere between modest and comfortable.

To figure out your gap: 1) Determine your target — ASFA comfortable ($595K single, $690K couple) or your own estimate. 2) Check your current super balance via your fund or myGov. 3) Use our retirement calculator to project what your balance will be at 67, given your current contributions and expected returns.

4) The difference between your projected balance and your target is your 'gap'. For example, a 40-year-old with $100,000 in super earning $85,000 per year with 12% SG and 7% returns is projected to reach approximately $490,000 by age 67.

That's $105,000 short of the comfortable target. To close this gap, they'd need to salary sacrifice approximately $3,000 per year ($58/week) — costing only about $40/week after the tax benefit. The earlier you calculate your gap and start closing it, the less it costs per week.

You can also use the Savings Mate Retirement Calculator to project your super balance at retirement and see how extra contributions change the outcome.

1) Salary sacrifice — the most powerful tool for most employees. Tax savings mean it costs less than saving outside super. Even $50/week from age 35 could add $200,000+ to your retirement balance.

2) Government co-contribution — if you earn less than $62,488 and make a $1,000 non-concessional contribution, the government adds up to $500 for free. 3) Spouse contributions — if your spouse earns under $40,000, you can claim an 18% tax offset (up to $540) on contributions you make to their super.

Don't gloss over this. 4) Consolidate accounts — multiple super accounts mean multiple sets of fees. One account is cheaper. 5) Check your investment option — growth options typically outperform balanced/conservative over 10+ year horizons. 6) Use the carry-forward rule if over 50 — catch up on unused contribution caps from previous years.

7) Consider a financial advisor — the cost of a single session to build a retirement plan is tiny compared to the potential savings.