Retirement Planning: Are You on Track for a Comfortable Lifestyle?
The Retirement Question Every Australian Asks
One of the most common questions Australians ask when planning for retirement is:
"How much money do I actually need to retire comfortably?"
ASFA's Retirement Standard is considered Australia's benchmark guide for retirement living costs. It provides a realistic estimate of the income and superannuation balances required to fund both a modest and a comfortable retirement lifestyle.
Understanding these benchmarks can help you determine whether you're on track—and what steps you may need to take to achieve the retirement lifestyle you want.
The ASFA Retirement Standard is updated regularly and measures the amount of income retirees need to maintain specific lifestyles in retirement.
The benchmark assumes retirees:
Are aged between 65 and 84
Own their home outright (unless otherwise stated)
Are generally in good health
Draw part of their retirement income from superannuation and, where eligible, the Age Pension
The standard defines three main retirement lifestyles:
Comfortable Life Style
Modest Life Style
Age Pension Life Style
Please have a look at the following infographic to understand these lifestyles in detail.
Comfortable Retirement Is the New Minimum
A comfortable retirement lifestyle enables an older, healthy retiree to be involved in a broad range of leisure and recreational activities and to have a good standard of living through the purchase of such things such as house hold goods, private health insurance. a reasonable car, good clothes. a range of electronic equipment and domestic and occasionally international holiday travel.
A comfortable retirement may include:
Health & Wellbeing
Top-level private health insurance
Regular doctor and specialist visits
Pharmacy expenses
Technology & Connectivity
Reliable high-speed internet
Smartphone and computer
Streaming services
Lifestyle & Leisure
Club memberships
Social activities
Movies and entertainment
Exercise classes
Dining out occasionally
Travel
One domestic holiday each year
An overseas holiday approximately every seven years
Home & Transport
Maintaining a reliable vehicle
Home repairs and renovations over time
Replacement of household appliances
Please note that these are considered reasonable lifestyle expectations rather than extravagant spending.
“Your 40s and 50s are some of the most important years to get serious about retirement planning. You still have time to make meaningful changes, build your assets and close any retirement funding gap.
The earlier you understand what you’ll need for the lifestyle you want, the more choices and flexibility you’ll have when you reach retirement. Don’t wait until retirement is around the corner — start planning for the retirement you want today.”
Why Have the Required Balances Increased?
ASFA increased its retirement lump-sum targets for the first time in three years.
Several factors contributed:
1. Rising Living Costs
Retirees have experienced significant increases in:
Electricity
Council rates
Water charges
Medical services
Domestic travel
Food costs
Many of these costs have risen faster than overall inflation.
2. Changes to Age Pension Deeming Rates
Higher deeming rates can reduce Age Pension entitlements for some retirees, meaning more retirement income must come from personal savings and superannuation.
3. Longer Life Expectancies
Australians are spending more years in retirement, increasing the need for sustainable retirement income strategies.
Why Property Investors May Need Less Super
While ASFA focuses primarily on superannuation balances, retirement income can come from multiple sources.
Many Australians build retirement wealth through:
Investment properties
Share portfolios
Managed funds
Business ownership
Superannuation
For example, someone with:
$500,000 in super, and
An investment property generating positive rental income
may be in a stronger retirement position than someone with $500,000 in super alone.
The key consideration is not simply the size of your super balance but the amount of reliable income your assets can generate during retirement.
The Biggest Retirement Risk Isn't Running Out of Money
Many Australians delay retirement planning because they believe retirement is decades away.
However, the biggest risk is often not starting early enough.
Small actions taken today can have a significant impact:
Increasing super contributions
Paying down debt
Building investment assets
Reviewing retirement goals annually
Obtaining professional financial advice
The earlier you begin, the more time compounding has to work in your favour.
Final Thoughts
The latest ASFA Retirement Standard provides an important reality check for Australians.
A comfortable retirement is achievable for many people, but it requires planning, discipline, and a clear understanding of your future lifestyle goals.
The good news is that retirement is not simply about reaching a magic number like $1 million.
Instead, successful retirement planning focuses on creating sufficient income, maintaining flexibility, and building a portfolio of assets that supports the lifestyle you want to enjoy.
Whether you're 35, 45, or approaching retirement, the best time to review your retirement strategy is now.
Ready to Find Out If You're On Track for Retirement?
At PWF, we've been helping Australians build wealth and plan for retirement for over 22 years.
Our team can help you:
✓ Assess your retirement readiness
✓ Identify income gaps
✓ Review your superannuation strategy
✓ Explore property and wealth-building opportunities
✓ Create a personalised retirement roadmap
Book your complimentary Wealth Strategy Session today and discover what your future retirement could look like.
Source:
https://moneysmart.gov.au/glossary/asfa-retirement-standard
https://www.superannuation.asn.au/consumers/retirement-standard/
https://www.superannuation.asn.au/wp-content/uploads/2026/06/March2026-RS-Tables.pdf