We break down the latest ASFA super and retirement benchmarks, explain why the “right number” is different for everyone, and share what Viridian advisers tell their clients.
It’s the question almost every Australian asks at some point: how much money do I actually need to retire?
You’ve probably heard figures thrown around — a million dollars, $500,000, “enough to live on.” But when you sit down and try to figure out your number, it can feel overwhelming. The short answer? It depends on how you want to live. The longer answer is more useful, and that’s what this article is for.
The benchmark most Australians start with
The most widely used guide is the ASFA Retirement Standard, published by the Association of Superannuation Funds of Australia. It estimates what retirees actually spend each year, and it’s updated every quarter to keep pace with the real cost of living.
Here’s where the numbers sit as of the latest data (Dec 2025):
ASFA Retirement Standard Benchmarks
Source: ASFA Retirement Standard & Moneysmart.gov.au. Assumes you own your home outright, retire at 67, and live to around 85.
These figures give you a starting point. But as our advisers will tell you, a starting point is not a plan.
Why the “right number” is different for everyone
Senior Financial Advisor Amanda Ragkousis puts it simply: “The biggest mistake I see is people chasing a dollar figure without thinking about the life behind it.”
She’s right. Two couples with $730,000 in super can have completely different retirements depending on whether they still have a mortgage, how healthy they are, and whether they plan to travel or stay close to home.
Here are some of the real-life factors that shift what “enough” looks like:
- Do you own your home outright? The ASFA figures assume you do. If you’re renting or still paying off a mortgage, your costs will be significantly higher.
- When do you plan to stop working? Retiring at 60 instead of 67 means seven extra years of drawing on your savings before the Age Pension kicks in.
- What does your health look like? Out-of-pocket medical costs and potential aged care needs are regularly underestimated.
- Do you have family to support? Many retirees help adult children with housing deposits or contribute to grandchildren’s education.
Executive Advisor Martin Sherwood sees this often: “Clients tell me they need a million dollars, but when we map out how they actually spend, some need more and some need far less. The number on its own doesn’t mean much.”
The common traps that catch people out
There are a few assumptions that trip up even well-prepared retirees:
- Trap 1: “I should never touch my capital.”
Executive Advisor Cameron Paul hears this regularly. “Many clients believe they have to live only off investment earnings. That’s not how retirement income works for most people. Your super is designed to be drawn down over time.” Holding back too much can mean a smaller, less enjoyable retirement than you can actually afford.
- Trap 2: “A calculator told me I’ll be fine.”
Online retirement calculators can be a helpful first step, but they usually assume smooth, steady returns and ignore real-world messiness, things like unexpected health costs, helping a child buy their first home, or simply spending more in early retirement when you’re active and healthy.
- Trap 3: Forgetting the Age Pension.
Many Australians will qualify for a full or part Age Pension, which can meaningfully top up their retirement income. The current full pension for a couple is roughly $46,000 per year (including supplements). It’s not luxury money, but it’s real income that your plan should account for.
What about higher-income retirees?
If you’ve earned well during your working life, your expectations in retirement are usually higher too and that’s perfectly reasonable.
Amanda notes that for many of her higher-income clients, “retirement isn’t about downsizing their life. It’s about maintaining the lifestyle they’ve built, with more freedom to enjoy it.”
These clients often have the capacity to hold growth-oriented investments for longer, which means their wealth can continue to grow even after they stop working. But it also means they need to think carefully about structuring their assets, managing contribution caps, and deciding when and how to pass wealth to the next generation.
So… how much do YOU need?
If you take one thing from this article, let it be this: the right retirement number is the one built around your life, not someone else’s benchmark.
A good place to start is understanding your actual spending. Track what you spend now, separate the essentials from the discretionary, and then think about what might change in retirement. Will you travel more in the early years? Could health costs rise later? Do you want to help the family along the way?
From there, a conversation with a qualified financial adviser can turn that picture into a real plan; one that accounts for tax, super rules, Centrelink eligibility, and the curveballs life inevitably throws.
As Martin puts it: “The goal isn’t to predict every detail. It’s to build a plan that gives you confidence and room to adjust.”
Ready to map out your retirement?
Speak to a Viridian adviser today. We’ll help you figure out what “enough” looks like for your life.
