How much super do you need to be comfortable?
The answer depends on a few factors like how you’re planning to spend your retirement and how long your money needs to last. But to give you an idea, the Association of Super Funds of Australia (ASFA) puts together a Retirement Standard which estimates how much it costs for both a modest and comfortable retirement lifestyle. It takes into account the usual expenses for a retiree who owns their own home.
According to the ASFA, a comfortable lifestyle for a single person costs $43,184 a year, or $59,236 for a couple. Figures for a modest lifestyle are $23,797 and $34,226 respectively.2
The government’s Age Pension is slightly lower than the modest lifestyle figures, which is a good reminder of why we might want to stretch our super as far as possible in retirement