If you’re planning to retire in the next 2–5 years, chances are you’ve asked yourself the question: “How much will I actually need to retire comfortably?” It’s a question that doesn’t have a one-size-fits-all answer, but one very helpful benchmark comes from the Association of Superannuation Funds of Australia (ASFA).
Each quarter, ASFA updates its Retirement Standard — a guide that outlines how much singles and couples need to spend in retirement to enjoy either a modest or comfortable lifestyle. The latest figures, released for the March 2025 quarter, provide an important snapshot of retirement spending targets — and a helpful reality check for those nearing the end of their working years.
Let’s break down what the new figures mean for you and your retirement plans.
What is the ASFA Retirement Standard?
The ASFA Retirement Standard is widely regarded as the benchmark for how much Australians need to live on in retirement, based on two lifestyle categories:
- Modest lifestyle: Better than the Age Pension alone, but still only allows for the basics.
- Comfortable lifestyle: Allows retirees to be involved in a broad range of leisure and recreational activities, have a good standard of living, and afford things like household upgrades, private health insurance, and regular domestic travel.
The Standard is updated quarterly to reflect changes in the cost of living, with particular attention to the price of essentials like food, energy, transport, and health care.
What are the new 2025 figures?
As of the March 2025 quarter, the annual costs estimated by ASFA are:
| Lifestyle Type | Couple (per year) | Single (per year) |
| Comfortable | $72,663 | $51,630 |
| Modest | $47,945 | $33,161 |
These figures assume retirees own their home outright and are relatively healthy.
What does ‘comfortable’ mean?
If you’re aiming for a comfortable lifestyle, here’s what ASFA says you should expect to be able to afford:
- A reasonable car
- Regular leisure activities and the occasional domestic or international holiday
- Good quality clothes and household goods
- Private health insurance
- Some flexibility in spending on things like gifts and dining out
It’s not a luxury lifestyle, but it’s far from frugal. It assumes a degree of financial freedom to enjoy your time, without constant budgeting stress.
What super balance do you need to support that?
ASFA also provides an indicative guide for how much you need in super to fund a comfortable retirement, assuming you’ll also receive a part Age Pension:
- Couple: Around $690,000
- Single: Around $595,000
These estimates assume that you’ll gradually draw down on your superannuation over the course of your retirement (rather than preserving your capital) and that you’ll live to around age 85–90.
So, how do you measure up?
If you’re approaching retirement and feeling unsure whether you’re “on track,” you’re not alone. Many people in their 50s and early 60s suddenly start to feel like the finish line is approaching fast, and they’re not quite ready.
Here are some key questions to ask yourself:
- Do you own your home outright or will you be carrying a mortgage or rent into retirement?
- Are you planning to travel regularly or keep things local?
- How long do you expect to live (family health history can be a guide)?
- Are you eligible for the Age Pension or other support?
- Do you want to leave money behind or spend it all?
These questions are deeply personal, and the answers can shift the amount you need dramatically.
Planning for confidence, not guesswork
While guides like the ASFA Retirement Standard are a great starting point, retirement planning is never purely about hitting a number. It’s about aligning your financial situation with the kind of life you want to lead in retirement.
That’s where professional advice can make a significant difference. At HPH Solutions, we help people nearing retirement make sense of their super, investments, income streams, and government entitlements so they can retire with clarity and confidence.
Whether you’re five years out or only months away, it’s not too late to build a solid plan that supports the life you want to live.