Ask a group of Australians how much money they think they’ll need to retire, and you’ll likely hear the same number again and again: $1 million.
It’s an appealing figure — round, simple, and easy to remember. However, in reality, many Australians retire may comfortably with far less. What truly matters is the income you’ll need to fund the lifestyle you want.
Start with your lifestyle, not a number
The first step is defining what a fulfilling retirement looks like for you. Someone who enjoys quiet days at home, gardening, and occasional domestic travel will have very different needs from someone planning regular fine dining and annual international trips.
The Association of Superannuation Funds of Australia (ASFA) provides a useful benchmark for what those lifestyles might cost. In its June 2025 report, ASFA found that a couple aged 67 would need around $690,000 in combined super to enjoy a comfortable retirement, producing an annual income of $75,319.
Meanwhile, couples who intend to live modestly will need just $100,000, or around $49,992 per year.
Both scenarios assume the couple owns their home outright and receives a part Age Pension. So, while these figures are helpful guides, they aren’t the entire story. Your own plan should reflect your personal goals, assets, and spending habits.
Plan for a long and flexible retirement
Australians are living longer, healthier lives. That means your retirement could last 25 to 30 years or more. Your spending pattern will probably change over that time.
Early retirement years often come with higher costs such as travel, hobbies, and long-awaited lifestyle upgrades, while later years may slow down before healthcare costs begin to rise. A well-structured financial plan anticipates these shifts and balances growth with accessible income.
Consider multiple income streams
Superannuation is central to most retirement plans, but it’s rarely the whole picture. Once you reach Age Pension age (currently 67), government support may provide a valuable supplement. The amount you receive depends on your income and assets, but for many, it adds important stability.
Continuing to work part-time is another option. Many Australians now choose to phase into retirement, working fewer days to maintain social connection and boost savings. Even a few extra years of income can make a meaningful difference to your financial confidence.
Focus on income, not the headline balance
The key to feeling secure in retirement isn’t chasing a certain figure. It’s ensuring you have reliable income streams that support your lifestyle.
For some, that may mean transitioning super into an account-based pension for tax-free earnings. For others, it could involve adjusting investment allocations or considering strategies to maximise Age Pension eligibility.
Sources: This article was originally published on Advisely with the title “Do you really need $1 million to retire?” on 12 October 2025.
The bottom line
You don’t need $1 million to retire well. What matters is having a plan that reflects your goals, balances growth and income, and evolves as life changes.
A trusted adviser can help you define what retirement means for you, model different scenarios, and create a strategy that gives you clarity and confidence for the years ahead.
Contact us to discuss how we can help you plan the retirement you want.
This information provided in this article is general advice only and has been prepared without taking into account your own objectives, financial situation or needs. Before making a financial decision based on this advice, you must consider whether it is appropriate in light of your own needs, objectives, and financial circumstances, and where relevant, obtain personal financial, taxation or legal advice. Where a financial product has been mentioned, you should obtain and read a copy of the Product Disclosure Statement (PDS) prior to making any decisions about whether to acquire a product.