Retirement savings targets: 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
- Super Consumers Australia has updated its retirement targets in light of cost-of-living increases and a higher Age Pension
- These targets give you a ‘rule of thumb’ on how much super you’ll need when you retire
Most of us want to maintain our standard of living when we retire. To do this, we need to know how much money to save to last us through our 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 to work out how much they need to save for retirement. The targets offer savings goals that are based on:
- your age
- whether you are single or in a couple
- how much you want to spend when you are retired.
Based on these three things, the savings targets give you a starting point on how much to save in order to sustain your desired standard of living until age 90 – so long as you own your own home outright, or you otherwise aren’t paying rent or a mortgage.
Another important assumption is that you spend down your super rather than trying to live off the interest. Super was designed to work this way.
Accessible Version
Savings targets for current retirees (Age 65)
If you live by yourself…
Low
Amount you wish to spend in retirement (per fortnight): $1190
Amount you wish to spend in retirement (per year): $31,000
You need to save this much by age 65: $75,000
The Age Pension would typically fund this much of your spending: 91%
Medium
Amount you wish to spend in retirement (per fortnight): $1650
Amount you wish to spend in retirement (per year): $43,000
You need to save this much by age 65: $310,000
The Age Pension would typically fund this much of your spending: 67%
High
Amount you wish to spend in retirement (per fortnight): $2270
Amount you wish to spend in retirement (per year): $59,000
You need to save this much by age 65: $876,000
The Age Pension would typically fund this much of your spending: 28%
If you live in a couple…
Low
Amount you wish to spend in retirement (per fortnight): $1770
Amount you wish to spend in retirement (per year): $46,000
You need to save this much by age 65: $96,000
The Age Pension would typically fund this much of your spending: 92%
Medium
Amount you wish to spend in retirement (per fortnight): $2380
Amount you wish to spend in retirement (per year): $62,000
You need to save this much by age 65: $421,000
The Age Pension would typically fund this much of your spending: 70%
High
Amount you wish to spend in retirement (per fortnight): $3350
Amount you wish to spend in retirement (per year): $87,000
You need to save this much by age 65: $1,223,000
The Age Pension would typically fund this much of your spending: 32%
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 January 2025
What if I’m not yet 65, what should my target be?
The value of your money, or how much your money can buy, usually decreases over time. This process is called inflation. The table below provides targets for 55-year-olds showing higher targets that take inflation into account.
Accessible Version
Savings targets for pre-retirees (Age 55–59)
If you live by yourself…
Low
Amount you wish to spend in retirement (per fortnight): $1420
Amount you wish to spend in retirement (per year): $37,000
You need to save this much by age 65: $130,000
The Age Pension will typically fund this much of your spending: 91%
Medium
Amount you wish to spend in retirement (per fortnight): $1890
Amount you wish to spend in retirement (per year): $49,000
You need to save this much by age 65: $395,000
The Age Pension will typically fund this much of your spending: 67%
High
Amount you wish to spend in retirement (per fortnight): $2390
Amount you wish to spend in retirement (per year): $62,000
You need to save this much by age 65: $846,000
The Age Pension will typically fund this much of your spending: 28%
If you live in a couple…
Low
Amount you wish to spend in retirement (per fortnight): $2080
Amount you wish to spend in retirement (per year): $54,000
You need to save this much by age 65: $168,000
The Age Pension will typically fund this much of your spending: 92%
Medium
Amount you wish to spend in retirement (per fortnight): $2770
Amount you wish to spend in retirement (per year): $72,000
You need to save this much by age 65: $548,000
The Age Pension will typically fund this much of your spending: 70%
High
Amount you wish to spend in retirement (per fortnight): $3500
Amount you wish to spend in retirement (per year): $91,000
You need to save this much by age 65: $1,177,000
The Age Pension will typically fund this much of your spending: 32%
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 January 2025
Be guided by satisfaction rather than aspiration
We use information from the Australian Bureau of Statistics on actual spending by retirees to estimate the low, medium and high spending levels.
In our 2024 survey we found that 80% of people over the age of 65 who own their home reported being financially satisfied or neutral about their finances.
The fact that most retirees maintain their spending levels and are satisfied with their lifestyle suggests that using actual spending, rather than aspirational targets, is a more useful measure.
What does low, medium and high mean?
The low, medium and high spending levels provide a rule of thumb to help you figure out your spending needs.
- Low: Approximately 30% of retirees aged 65 to 69 spend the low level or less and 70% spend more than this.
- Medium: Approximately 50% of retirees aged 65 to 69 spend the medium level or less and 50% spend more than this.
- High: Approximately 70% of retirees aged 65 to 69 spend the high level or less and 30% spend more than this.
Find out how Super Consumers Australia developed the retirement savings targets.
The targets seem low, am I reading them correctly?
Our savings targets may be lower than you are expecting because we assume you will receive any Age Pension you’re entitled to during your retirement. How much you receive from the Age Pension will affect how much you need to have saved.
We estimate that if you are spending at our low level for a single or couple, you will typically have over 90% of your retirement income coming from the Age Pension, and your super will cover the remaining 10%.
If you are spending at our mid level for a single or couple, we estimate you will typically have about 70% of your retirement income coming from the Age Pension, and your super and earnings on your super will cover the remaining 30%.
If you are spending at our high level for a single or couple, we estimate that you will be mostly self-funding your retirement. As you age, you would typically become eligible for the Age Pension, and it makes up a larger percentage the older you get.
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.
There are rules affecting how much you may be entitled to from the Age Pension, which are available on the Services Australia website. We apply the Age Pension eligibility test assuming that you have $25,000 in assets outside super. What you receive from the Age Pension may differ if this does not reflect your circumstances.
You can speak to Services Australia Centrelink for more information about your Age Pension eligibility. The government’s Moneysmart Retirement Planner can also help you understand your income from the Age Pension during retirement.
Independent figures are important
An important point about the targets we have developed here at Super Consumers Australia is that they’re independent – they’re not from a super fund or an industry group with a vested interest in getting you to contribute more to your super.
“I’ve used (retirement) calculators before, but they are from super funds themselves,” says one of the participants in our research. “You always wonder, [is] this based on actual people?”
Tough for retired renters
Retired renters have higher levels of poverty and financial stress than home-owners. We’ve previously highlighted how rental assistance is insufficient for this growing group of Australians. For this reason, our guidelines don’t include targets for retired renters.
Consumer advice to contribute more to super is often not realistic for retirees who rent – Xavier O’Halloran, CEO of Super Consumers Australia
We think that systemic change, such as increased social housing and further increases to Commonwealth Rent Assistance, is more important to this group than savings targets.
“Consumer advice to contribute more to super is often not realistic for retirees who rent. Much more needs to be done to create affordable housing if more renters are going to avoid poverty in retirement,” says Super Consumers Australia director Xavier O’Halloran.
Where can I find out more about retirement planning?
The government’s financial advice website Moneysmart.gov.au or the Financial Information Service are the best places to start when looking for free and independent information about retirement planning.
If you’re struggling with debt or in need of financial help, help is available for free from the National Debt Helpline. You can get independent financial advice or to speak with a financial counsellor. Visit ndh.org.au or call 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. Ecstra is committed to building the financial wellbeing of Australians within a fair financial system.
