By Philippa Billings, Chief Advice Officer

Most Australians need roughly $630,000 in superannuation to fund a comfortable retirement at age 67 — if they're single. For couples, that figure climbs to around $730,000. These are the benchmarks published by the Association of Superannuation Funds of Australia (ASFA) for May 2026, and they're a useful starting point for anyone trying to picture what "enough" actually looks like. The honest answer, though, is that the right number depends heavily on your lifestyle, your health, when you plan to retire, and what other assets you have outside of super.

What does "comfortable retirement" actually mean?

ASFA defines a comfortable retirement as one that allows a person to maintain a good standard of living — think occasional dining out, a domestic holiday each year, good health cover, and the ability to replace household items as needed. The ASFA December 2025 figures sit at around $55,000 per year for a single person and $77,370 for a couple living comfortably.

A more modest retirement — covering essentials but with little room for extras — costs significantly less. ASFA puts that at roughly $35,500 per year for singles and $51,300 for couples. These figures assume the retiree owns their home outright.

Understanding where you see yourself on that spectrum is one of the most important starting points in any retirement conversation.

How long does retirement income need to last?

This is where many people underestimate the challenge. The average Australian woman who reaches 65 can expect to live well into her mid-80s. For men, life expectancy at 65 is around 84. That means retirement income may need to stretch 20 to 25 years — sometimes longer.

A useful way to think about it: if someone retires at 67 with $500,000 in super, drawing down $40,000 per year with modest investment returns, the balance could run out well before age 90. A superannuation retirement calculator can model different drawdown scenarios and show how long a given balance is likely to last — which is why tools like a retirement income calculator can be genuinely eye-opening.

What factors affect how much super you'll actually have?

Several variables shape where someone ends up:

Contributions history. The compulsory employer Superannuation Guarantee (SG) rate is currently 12%. For someone who's worked full-time their entire career, that adds up to a substantial balance. But career breaks — for study, caring responsibilities, illness or part-time work — can significantly reduce what's accumulated.

Investment returns over time. The compounding effect of investment growth is what does the heavy lifting in superannuation. Someone who stays in a conservative fund for decades will typically end up with a very different balance to someone whose investments have been better aligned to their timeline and risk tolerance.

Fees. Even seemingly small annual fees can erode tens of thousands of dollars over a working lifetime. A difference of 0.5% per year in total fees compounds to a meaningful gap by retirement.

When you start drawing down. Someone who retires at 60 needs their super to last much longer than someone who keeps working until 68.

How a superannuation calculator can help

Rather than trying to estimate these variables in your head, a super projection calculator does the maths for you. It takes inputs like your current balance, age, salary, and planned retirement age, then projects forward based on assumed returns and contributions. A good super estimator will also factor in the Age Pension — because for many Australians, that government payment forms part of their retirement income picture.

Otivo's retirement planning tool helps people model how much they're likely to accumulate by retirement, and what changes — to contributions, investment options, or retirement age — could improve the outcome. It considers current age, salary, super balance, other investments, retirement lifestyle goals and super access age.

What if you're behind where you'd like to be?

It's common for Australians in their 40s and 50s to feel like they're not on track. The good news is that there are legitimate, low-complexity strategies that many people explore to build their balance in the years before retirement.

Salary sacrifice involves directing a portion of pre-tax salary into super, taking advantage of the lower 15% tax rate on contributions (an additional 15% for high income earners). The concessional contributions cap is $30,000 for 2025/26 - increasing to $32,500 in 2026-27. That includes your employer's compulsory SG contributions.

Carry-forward contributions allows eligible people with a total super balance under $500,000 to make extra concessional contributions using unused cap space from the previous five financial years. This can be particularly useful for people who had career interruptions.

Voluntary after-tax contributions allow eligible people to contribute from their take-home pay or other savings into super without claiming a tax deduction. These are called non-concessional contributions and are not taxed as they enter super (earnings in super are taxed). There's a general cap of $120,000 for 2025-26, increasing to $130,000 in 2026-27. Contributions above that cap in a financial year can automatically trigger the bring-forward arrangement, allowing up to 3 years of caps to be used at once (up to $360,000 for 2025-26). Check your caps and bring-forward eligibility in ATO online services in myGov.

A financial adviser can help work through which of these approaches makes the most sense given individual circumstances — as can licensed digital platforms like Otivo, which provide regulated advice without the traditional cost barrier.

How does the Age Pension fit in?

The Age Pension is means-tested, which means the amount received depends on income and assets. Centrelink applies both an income test and an assets test, and the test that results in the lower payment determines the pension entitlement.

A single homeowner with assessable assets of around $500,000, including superannuation, may receive a part Age Pension, while someone in the same situation with assessable assets of around $320,000 may be eligible for a full Age Pension under the March 2026 assets test thresholds.

Understanding the interplay between superannuation, other assets, and Age Pension entitlements is one of the more complex parts of retirement planning. It's an area where a retirement planner — human or digital — can add real clarity.

Frequently asked questions

How much super does the average Australian have at retirement?

According to the Australian Bureau of Statistics, the median super balance for Australians aged 60–64 is around $220,000 for men and $163,000 for women. These figures are well below the ASFA comfortable retirement benchmarks, which is why understanding the gap early — and exploring options to close it — matters so much.

Can I retire on $500,000 in super?

It depends on lifestyle expectations, other assets, and how long retirement lasts. $500,000 combined with a part Age Pension can fund a modest to comfortable retirement for many people. Tools like a "how long will my super last" calculator can model specific scenarios based on your drawdown rate and assumed investment returns.

What is a comfortable retirement income in Australia?

ASFA's December 2025 Retirement Standard benchmarks put a comfortable single retirement at around $55,000 per year, and $77,370 per year for couples. A modest retirement sits around $35,500 (single) and $51,300 (couples). These figures assume the retiree owns their home outright.

At what age can I access my super?

There are a few ways you can access your super. The most common are reaching age 65, or reaching preservation age and retiring (age 60 for most of us), or stopping work at age 60. These are known as "conditions of release" under super law. Once a full condition of release is met, your super becomes unrestricted and it's yours to do with as you please.

You can generally choose to withdraw some or all of it as a lump sum, and or start an income stream (such as an account-based pension). Starting an income stream is popular because it feels similar to getting paid a wage when you were working, which can make budgeting in retirement feel simpler and more familiar.

The bottom line on retirement savings

There's no single magic number that works for everyone. But understanding the benchmarks, knowing how your balance is tracking, and exploring strategies to boost it in the years before retirement can make a real difference. Tools like a superannuation retirement calculator help people move from vague anxiety to a clearer picture — and from there, to action.

Whether someone uses a digital tool like Otivo or works with a financial adviser, the most important step is simply to look at the numbers honestly and early enough to do something about them.

Disclaimer

The information in this communication is current as at May 2026 and has been prepared by Otivo Pty Ltd ABN 47 602 457 732, AFSL and Australian Credit Licence No. 485665. This content is general information only and has been prepared without taking into account your objectives, financial situation or needs. It is not personal financial or taxation advice and should not be relied on as such. Before acting on any information, you should consider its appropriateness having regard to your personal circumstances. This material must not be reproduced in whole or in part, or posted on any social media platform, without the prior written consent of Otivo Pty Ltd.