2026 retirement savings targets for homeowners: How much do you need to retire?
How much you need to maintain your standard of living, based on actual spending by retirees.
Need to know
- Homeowner spending levels have increased modestly, roughly in line with inflation.
- These retirement savings targets give you an independent ‘rule of thumb’ for how much super you’ll need to maintain your lifestyle in retirement.
- A typical single retiree will need $322,000 in superannuation when they retire
Most of us expect to maintain our standard of living when we retire. To do this, we need to know how much to save to last us through retirement.
Super Consumers Australia has done the calculations for you.
What are retirement savings targets?
Super Consumers Australia’s Retirement Savings Targets are an independent tool to help people start working out how much they need to save for retirement. The targets are based on:
- your age
- whether you’re single or in a couple
- how much you want to spend each year in retirement
These targets show how much super you’ll need to sustain your desired standard of living until the age of 90, assuming you own your home outright or don’t pay rent or a mortgage and receive the Age Pension you’re entitled to.
In fact, the income levels quoted are mostly comprised of the Age Pension at the low income level, are a mix of both super and the Age Pension at the medium level and are mostly made up by your super at the high level.
Accessible Version
Savings targets for current retirees (Age 65)
If you live by yourself…
Low
Amount you wish to spend in retirement (per fortnight): $1230
Amount you wish to spend in retirement (per year): $32,000
You need to save this much by age 65: $74,000
The Age Pension would typically fund this much of your spending: 91%
Medium
Amount you wish to spend in retirement (per fortnight): $1690
Amount you wish to spend in retirement (per year): $44,000
You need to save this much by age 65: $322,000
The Age Pension would typically fund this much of your spending: 67%
High
Amount you wish to spend in retirement (per fortnight): $2350
Amount you wish to spend in retirement (per year): $61,000
You need to save this much by age 65: $891,000
The Age Pension would typically fund this much of your spending: 29%
If you live in a couple…
Low
Combined amount you wish to spend as a couple in retirement (per fortnight): $1810
Combined amount you wish to spend as a couple in retirement (per year): $47,000
Together you need combined savings by age 65 of: $99,000
The Age Pension would typically fund this much of your spending: 92%
Medium
Combined amount you wish to spend as a couple in retirement (per fortnight): $2460
Combined amount you wish to spend as a couple in retirement (per year): $64,000
Together you need combined savings by age 65 of: $432,000
The Age Pension would typically fund this much of your spending: 70%
High
Combined amount you wish to spend as a couple in retirement (per fortnight): $3420
Combined amount you wish to spend as a couple in retirement (per year): $89,000
Together you need combined savings by age 65 of: $1,216,000
The Age Pension would typically fund this much of your spending: 34%
Table notes: These targets assume you will own your own home outright (or otherwise won’t pay rent or mortgage) when you retire. Figures for couples represent the combined spending of two people living together. Spending levels are in today’s dollars and have been adjusted for inflation. These levels are based on ABS data about retirees’ spending. Updated December 2025.
How we calculated the figures
Expand
Spending
We calculated the housing and non-housing spending of homeowners from the ABS Household Expenditure Survey. This is a survey of what everyday Australians spend across different income levels. We made sure they are relevant to you today by adjusting these amounts to today’s dollars by using the ABS Household Expenditure data from the latest National Accounts to incorporate a change to the bundle of goods that households are spending on, and using the ABS Age Pensioner Living Cost Index to adjust for changes in prices.
Superannuation savings
We modelled the ups and downs of investment returns over time and calculated a superannuation balance that you need at the start of your retirement to be 90% sure that, even given uncertain investment outcomes in retirement, you’ll have income from your super and the Age Pension to cover your spending needs each year to age 90. After age 90 you’ll still have access to the full Age Pension.
We estimated how your super would grow by looking out how it grew over the last 25 years, playing out thousands of different versions of events that could occur in the future.
Be guided by actual spending rather than aspiration
We use real spending data reported by a cross section of Australians to the Australian Bureau of Statistics. The low amount is the equivalent to what people in the bottom third spend each year on living costs, the medium is what people right in the middle spend and the high is what the top third spend.
In our 2025 survey, 90% of retirees who own their home said they were satisfied or neutral about their financial situation, reinforcing that actual spending data is a reliable benchmark to help you understand what you might spend once you retire.
In our 2025 survey, 90% of retirees who own their home said they were satisfied or neutral about their financial situation
Find your own target
It’s worth remembering we designed our targets to get people more engaged with retirement planning. These numbers are just the first step on your journey to preparing for life after work.
The next step is to get a more personalised picture of what you need to save and how to reach your goals.
To figure out your own retirement spending and savings targets, there is a free, independent online resource called Moneysmart that can help. You can also talk to the government’s Financial Information Service over the phone on 132 300, or seek independent financial advice.
Step 1: Do a budget
Do a budget to find out how much you will likely need to spend in retirement using the MoneySmart Budget Planner.
Step 2: Find your current superannuation balance
You can find your current superannuation balance on your annual member statement from your super fund, or by logging into your super fund’s website or app. You can also find your super balance on MyGov.
Step 3: Predict your retirement income
Some super funds give you an estimate of your retirement income on your annual statement, or when you login to your super fund’s website or app. If your fund doesn’t do this, you can estimate your retirement income using the MoneySmart Retirement Planner.
Step 4: Check if you are on track
Compare your budget to your predicted retirement income. Many people will find they are on track or close to it. If you’re not, there are still steps you can take, like finding a better performing fund, making additional contributions to super, including downsizer contributions from the sale of the family home as you approach retirement.
Also, once you retire, you can access additional income from the equity in your home via the government run Home Equity Access Scheme once you’ve reached Age Pension age.
Some Super funds provide retirement income estimates
If you don’t want to use an online tool, you may also find that your superannuation fund has done calculations for you.
Some superannuation funds provide an estimated retirement income on your annual member statement and on their app. If you are lucky enough to be in one of these funds, then this number gives you a useful starting point for your retirement planning.
Unfortunately not all of the superannuation funds provide this. At Super Consumers Australia we think they should. The Government has drafted guidance to superannuation funds suggesting that they should provide this information to their members. We continue to fight to make it required for superannuation funds to help their members with this personalised estimate of retirement income.
If you spend at the medium level you will typically have about 70% of your retirement income coming from the Age Pension, and 30% from your super.
The Age Pension makes a big difference
We assume retirees receive any Age Pension they’re eligible for. The amount you receive affects how much superannuation you’ll need:
- Low-level spenders: ~90% of income from the Age Pension
- Medium-level spenders: ~70% from the Age Pension
- High-level spenders: Mostly self-funded, with the Age Pension providing more support as you age
You can check your Age Pension eligibility on the Services Australia website https://www.servicesaustralia.gov.au/age-pension.
Independent figures matter
Our targets are independent and based on what actual people spend. They’re not produced by a super fund or industry body with a financial interest in encouraging higher contributions.
“I’ve used retirement calculators before, but they were from super funds. You always wonder — is this based on actual people?”
— Research participant, Super Consumers Australia
Where to get help
For free and independent information:
- Visit moneysmart.gov.au or the Financial Information Service
- If you’re struggling with debt, contact the National Debt Helpline on 1800 007 007
Read our retirement targets feedback report
The development and ongoing maintenance of our retirement targets is supported by a philanthropic grant from Ecstra Foundation, which is committed to building the financial wellbeing of Australians within a fair financial system.
