One rule of thumb that’s often used, particularly for those on above-average incomes, is the two-thirds rule. It suggests that you’ll need around two-thirds of current gross income each year.
The Association of Super Funds of Australia (ASFA) puts together a Retirement Standard1 which you can also use to approximate how much you’ll need to live off in retirement. It takes into account the usual expenses for a retiree who owns their own home.
It’s not perfect – you’ll need to increase or decrease it depending on your own lifestyle - but it can be a handy starting point. Our budget planner is also a good tool to get a clearer picture of your likely spending.