Many Australians aim to retire at 60. The amount needed to make this possible depends on several things, including the kind of retirement lifestyle you want
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Super required to retire at 60
Many Australians aim to retire at 60. The amount needed to make this possible depends on several things, including the kind of retirement lifestyle you want.
The Association of Superannuation Funds of Australia (ASFA) has identified two key retirement lifestyles in Australia:
- Modest
- Comfortable
To retire comfortably aged 60, a single person would need a super balance of around $470,000 (for an income in retirement of about $52,000 per year*), and a couple would need a combined super balance of around $600,000 (for a combined income in retirement of about $73,000 per year*).
*Based on a combination of super drawdown and Age Pension payments
Retirement Centre support
Not sure where to begin? Our Retirement Centre can provide one-on-one support and answer the questions you might be too shy to ask. Our services are available to all.
Modest retirement
A modest retirement provides a lifestyle that's better than relying solely on the Age Pension but still requires careful budgeting. This means affording basic necessities such as housing, food, and healthcare, with minimal capacity for luxuries According to ASFA, this equates to an annual income of $33,000 for singles and $48,000 for a couple.^
Comfortable retirement
A comfortable retirement allows for a higher standard of living, covering additional expenses such as more frequent dining out, regular domestic and international holidays, and maintaining a reliable car. According to ASFA, this equates to an annual income of $52,000 for a single person, and $73,000 for a couple.^
^ASFA Retirement Standard, June quarter 2024.
Working out how much you’ll need to retire at 60
You can work out how much you’ll need in retirement savings by calculating your expected annual living expenses with a retirement budget, which can include:
- Everyday costs such as groceries and bills.
- More significant expenses like travel, leisure activities, and medical care.
For Australians aiming to retire at 60, it makes sense to plan for at least 20 to 30 years of income. You can access your super from age 60, but you won’t have access to the Age Pension (assuming you qualify) until you’re aged 67.
Our Retirement Lifestyle calculator can help you workout how much you’ll need for your desired lifestyle. Try it today.
Examples of how much is needed to retire comfortably
David and Karen are a couple, both aged 60, and have decided to retire. Together, they’ve accumulated $600,000 in superannuation and their goal is to generate a comfortable income in retirement. Once they turn age 67 they will be eligible for the full Age Pension.
After reviewing the ASFA Retirement Standard and using the Retirement Lifestyle calculator, they decide they’d like an annual income of $72,000 to support their lifestyle, which includes occasional travel, dining out, and some home improvements.
Using the Retirement Calculator, they find that they can withdraw $72,000 per annum from their super to cover their needs until they qualify for the Age Pension at 67. Once receiving the Age Pension they are able to use their superannuation to top up their income to continue to reach their $72,000 requirement.
In this scenario, David and Karen feel confident they can retire at 60 and maintain their desired standard of living. They understand, however, that their super balance could fluctuate based on market performance.
Retiring at 65 means you are closer to claiming the Age Pension, which can reduce how much super you need. As a single person, a balance of around $270,000 would be enough for an income of about $52,000 per year (using a combination of super drawdown and Age Pension payments), which is approximately what ASFA estimates is needed for comfortable retirement.
Delaying retirement until 70 means your super will need to last for fewer years. A single person would need a balance of around $170,000 for an income of about $52,000 per year (using a combination of super drawdown and Age Pension).
Figures determined using the Retirement Calculator as at November 2024.
- Based on the Retirement Calculator
- Super balance is in today’s figures
- Age Pension rates are as at November 2024
- Invested in the ‘assertive’ option returning 7.5%pa
- Fees and costs as at November 2024.
- No insurance premiums
- 2.5% CPI
- 1.5% Improvement in living standards
How much do you need to retire?
For the most accurate and up-to-date information, online tools like our retirement calculators can help you estimate how much you’ll need based on your age, working situation and preferred lifestyle.
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How much do you need to retire?
For the most accurate and up-to-date information, online tools like our retirement calculators can help you estimate how much you’ll need based on your age, working situation and preferred lifestyle.
Your retirement questions answered
A financial planner can take the guesswork out of retirement. Book a time for an initial conversation and we can help you map out your retirement goals, supporting services, and next steps.
This initial appointment is obligation free and available to all fund members at no additional charge.
Book a time to talk to our advice team or call us on 1800 065 753
Have a general enquiry? Contact our Helpline.
Frequently asked questions
It depends on your lifestyle and financial goals. For up-to-date figures, use our Retirement Calculator to model different scenarios and estimate your required balance.
Retiring with $500,000 at 60 is enough for a single person to retire comfortably with an income of about $52,000 per year*, which is approximately what ASFA estimates is needed for a comfortable retirement. You can explore different options using our Retirement Calculator to see how long your balance will last based on your expected spending and withdrawal rate.
*With a combination of super drawdown and Age Pension payments
A couple could retire with $500,000 in super, with an income of about $66,000*, but they would be below the ASFA Retirement Standard of $73,337 per year for a comfortable retirement for a couple. You can see how long your super balance might last in retirement using our Retirement Calculator.
*With a combination of super drawdown and Age Pension payments
With $1 million, a couple could enjoy a comfortable retirement, depending on their lifestyle, desired income and Age Pension eligibility. For a detailed assessment, use our Retirement Calculator to explore how this balance would perform over time.
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