How Much Will You Really Need?
Living your dream retirement takes planning, and action. Retirement is one of life’s biggest milestones. For some, the dream is to travel Australia in a motorhome. For others, it’s spending more time with family, pursuing hobbies, volunteering, or simply enjoying the freedom to choose how each day is spent.
Whatever your vision looks like, one question sits at the centre of every retirement plan:
Will I have enough to live the lifestyle I want?
The answer depends on your goals, your expected lifestyle, and the planning you put in place well before retirement.
Your Retirement Lifestyle Will Shape Your Financial Needs
No two retirements are the same.
Some people are happy with a simpler lifestyle focused on everyday living expenses, while others want to travel regularly, upgrade their home, enjoy dining out, or help children and grandchildren financially.
A good starting point is to estimate your likely retirement expenses. While your mortgage may be paid off and work-related costs disappear, other expenses often increase, including:
- Travel and holidays
- Healthcare and private health insurance
- Home maintenance and renovations
- Leisure activities and hobbies
- Supporting family members
- Rising living costs over a retirement that could last 25–30 years or more
Understanding your future spending provides the foundation for building an effective retirement strategy.
Will the Age Pension Be Enough?
The Age Pension provides valuable financial support for eligible Australians, but it was designed as a safety net rather than a complete retirement income solution.
As at 20 March 2026, the maximum full Age Pension provides approximately:
- Single: around $31,200 per year
- Couple (combined): around $47,000 per year
For many Australians, this covers essential living expenses. However, it is not designed to provide the level of financial freedom many people hope to enjoy during retirement.
If your retirement goals include regular travel, replacing vehicles, maintaining private health insurance or enjoying more discretionary spending, you’ll generally need additional savings and investments.
What Does Retirement Really Cost?
The Association of Superannuation Funds of Australia (ASFA) publishes its Retirement Standard each quarter, providing a useful benchmark for retirement living costs.
A Modest Retirement
A modest lifestyle allows retirees to enjoy more than the Age Pension alone while still living relatively simply.
According to the March 2026 ASFA Retirement Standard:
- Single: approximately $36,400 per year
- Couple: approximately $52,500 per year
This generally provides for basic living expenses with limited discretionary spending.
A Comfortable Retirement
Many Australians aspire to something more comfortable.
ASFA defines a comfortable retirement as one that allows retirees to maintain a good standard of living, including:
- Domestic holidays on a regular basis
- Private health insurance
- A reliable motor vehicle
- Dining out and entertainment
- New household items and technology
- Leisure activities and hobbies – and
- Occasional overseas travel.
The March 2026 estimates suggest annual spending on a comfortable retirement to be approximately:
- Single: $55,900
- Couple: $78,600
These figures are guides only. Your own retirement requirements may be higher or lower depending on your lifestyle goals and objectives. Would this be living your dream retirement?
How Much Superannuation Might You Need?
While annual income is important, your retirement savings ultimately determine how long that income can last.
ASFA estimates that, for many Australians aiming for a comfortable retirement, savings of around:
- $630,000 for a single person
- $730,000 for a couple
may be appropriate, assuming eligibility for at least a part Age Pension.
However, these are broad benchmarks rather than personal recommendations. Factors such as your retirement age, investment returns, health, life expectancy and desired lifestyle all influence how much you may actually need.
A personalised retirement projection provides a far more accurate picture. An experienced financial planner will guide you in how to assess your likely financial needs in retirement – and how to accumulate the wealth to fund them.
Building Wealth for Retirement
Superannuation remains one of the most tax-effective ways to save for retirement.
Depending on your circumstances, you may be able to grow your retirement savings through:
- Employer super contributions
- Salary sacrifice arrangements
- Personal deductible contributions
- Spouse contributions
- Government co-contributions (where eligible)
For many people, superannuation works alongside other investments such as managed funds, shares, investment property or cash savings to provide greater flexibility throughout retirement.
The right strategy depends on your personal goals and long-term objectives.
The Earlier You Plan, the More Choices You’ll Have
One of the biggest advantages in retirement planning is time.
Starting early allows investment earnings to compound, provides greater flexibility if circumstances change, and reduces the pressure of trying to catch up later in life.
Even if retirement is still many years away, reviewing your superannuation, investment strategy and retirement goals today can significantly improve your future financial position.
Start Planning for living your dream retirement
Retirement isn’t simply about stopping work—it’s about having the financial confidence to enjoy the lifestyle you’ve worked hard to achieve.
Whether retirement is five years away or twenty-five, developing a clear financial plan can help you understand how much you’ll need, identify any shortfall, and put strategies in place to build the retirement income you’re aiming for.
Ready to Take the Next Step?
At Continuum Financial Planners, we help individuals and couples develop personalised retirement strategies that align with their goals, lifestyle and financial circumstances. Our advisers are well experienced in this area of wealth management and investment advice.
If you’d like to understand whether you’re on track for the retirement you want, we’d be happy to help. To arrange an appointment with one of our team members to discuss your situation –
- Phone our office, on 07-3421 3456, or
- At any time convenient to you, use this linked Book A Meeting facility to set the time.
(This article was first posted by us in July 2026.)