When it comes to retirement planning, most of us have a vague idea of what we want – freedom, security, time with family, maybe a bit of travel. But the big question remains: how much do you actually need to retire comfortably?
At FMS Group, we work closely with clients across the Central Coast and Sydney’s North Shore to help turn vague dreams into clear, practical plans. Here’s what you need to know about the cost of retirement in Australia, and how we can help you prepare for it.
Start Retirement Planning by Defining “Comfortable”
Everyone’s version of a comfortable retirement is different. For some, it means travelling overseas once a year. For others, it’s about staying close to home, helping the grandkids, or pursuing hobbies without financial stress.
That said, the Association of Superannuation Funds of Australia (ASFA) provides some helpful benchmarks to help you plan for the cost of retirement. As of March 2025, ASFA estimates that a couple aged over 65 needs approximately $73,875 per year to live a “comfortable” retirement, while a single person would need around $52,383 annually.* This assumes you own your home outright and are relatively healthy.
But these are just averages, and your lifestyle, health needs, family situation and goals will all influence what’s right for you.
Factors That Influence the Cost of Retirement
There’s no one-size-fits-all answer to how much you’ll need. Some of the key factors to consider include:
- Housing: Are you mortgage-free, renting, or planning to downsize?
- Health: Do you have private health cover? Any known medical needs?
- Lifestyle: Travel, dining out, supporting family… what will your day-to-day look like?
- Location: Living costs vary. A beachside retirement on the Central Coast might differ from an inner-city lifestyle in Sydney.
- Longevity: Australians are living longer, meaning your retirement savings may need to last 25-30 years or more.
Superannuation Is Just the Start
While superannuation is a key part of retirement funding, it often isn’t enough on its own. According to recent data, the average super balance at retirement is still falling short of ASFA’s recommended targets, especially for women.
That’s why it’s so important to take a holistic approach. At FMS Group, we help you review your superannuation performance, contributions, and investment strategy, and then look at your broader financial position, including:
- Non-super investments
- Downsizing or equity release
- Centrelink entitlements
- Estate planning
- Tax strategies
How Much Do You Really Need to Retire?
As a general rule of thumb, many planners suggest aiming for 70–80% of your pre-retirement income per year. But the most accurate way to determine your number is to:
- Forecast your expenses: Include essentials and discretionary spending
- Estimate how long you’ll need income for: Based on your health, family history, and retirement age
- Calculate your income sources: Superannuation, investments, pension, part-time work
Working with a qualified financial planner is the best way to map this out and avoid underestimating what you’ll need.
Planning Early = Peace of Mind Later
Whether you’re a few years out or still decades from retirement, the earlier you start planning, the better your outcomes will be. Small changes now – like salary sacrificing to super, investing wisely, or paying off debt – can have a huge impact over time.
“A comfortable retirement isn’t just about the numbers”, says Christine Hornery, Director at FMS Group. “It’s about knowing you’re free to live the life you want. That peace of mind comes from planning ahead.”
Let FMS Group Help You Prepare for Retirement
At FMS Group, we’re passionate about helping individuals and families build secure financial futures. We’ll help you take the guesswork out of retirement planning and guide you through each step, with clear advice and a personalised strategy.
Whether you’re just getting started or reviewing your current plan, we’re here to help.
Call 1300 982 499 to book a consultation.
*Source: ASFA Retirement Standard, March Quarter 2024
Disclaimer: This blog is general in nature and does not constitute personal financial advice. Please speak to a qualified financial advisor about your individual circumstances.