How much do I need to retire?
It’s never too early to start thinking about your retirement.
Even if you are only in your 20s and just starting your career, it’s worthwhile taking the time to seek some retirement financial advice and make plans in order to achieve your goals.
The question of how much you will need depends on many variables, and the answer will be different for every person. We spoke to Cayle Petritsch, Director and Wealth Specialist, about how
North Advisory can help you determine your retirement income needs and set you on the right path.
“There’s no magic retirement number — it’s about funding the lifestyle you want, for as long as you need.”
As for a specific financial figure… there are so many different variables.
- You need to know how many years until you retire. Are you aiming for the standard age or do you want to retire early?
- Will you have a retirement job? For instance, some people retire from full-time work but they might take on a casual job to keep themselves busy.
- You also have to consider the type of lifestyle you want. Do you want to go on holiday regularly? Do you like to eat out multiple times a week?
- Do you own your own home? What other assets or income do you have?
Plus, will you be eligible for the age pension?
Asking all these questions can help you determine the income you will need in retirement.”
Modest or comfortable
Of course, everyone wants their retirement to be the best it can be… but you might need to adjust your expectations based on what is achievable.
If you have determined that you need an annual income of $75,000 to support your desired lifestyle, but your current projected superannuation will only support $50,000, then you might need to review some of the items on your ‘want’ list.
The Association of Superannuation Funds Australia (ASFA) has published some basic figures as a guideline around annual income needs:
| Modest | Comfortable | |
| Couple | $40,194 per year | $61,786 per year |
| Single | $27,913 per year | $43,787 per year |
ASIC also has some online resources that can be useful in helping you determine how much is enough for your retirement.
Cayle continues,
“As part of this discussion we need to look at what is a comfortable retirement.
It is being able to go on holidays a couple of times a year… enjoying a good standard of living. You can make purchases for household items without strict budgeting. You can afford private health insurance. You might have a nice car or high-tech electronics in your home.
Comfortable means you could buy your grandkids a gift without being concerned about your next utility bill.
However, a modest lifestyle is more budget conscious. It would still be higher than the age pension on its own, but you would need to be mindful of your expenses.
While these figures are published, it really depends on what you want from your retirement. The answer is different for every single person… again, we recommend that you ask yourself questions about what you want your lifestyle to be like.”
“Retirement planning is less about guessing a figure and more about understanding income, expenses and longevity.”
How we can help
Seeking retirement financial advice is the first step. We can help you assess your current situation and establish a plan that will suit you. Cayle concludes,
“We talk to you about what you want in retirement. We look at what you currently have in your super and other assets and we calculate if your goals are achievable from where you are currently positioned.
Sometimes this can be confronting because people don’t realise the disparity between what they have and what they want to spend.
We firmly believe the earlier you start considering your future the better… but in saying that, we can help regardless of your stage in life. We understand that when you are in your 20s, the last thing you want to think about is retirement, but even if you just become more aware then that’s a start.
We assess your super fund… are the assets right for you? Are they suited to what you want to achieve in the future and are they going to support you in retirement? We can determine whether any modifications should be made in order to achieve your goals.
For many of our older clients, we look at ways to preserve their capital because most people want to be able to leave something to their kids. We find ways to preserve that while also generating the returns they need to fund their lifestyle.
It doesn’t matter where you are in life… 20, 40, 60 or in your 70s… we can provide a valuable service.”
Contact us today to find out how we can help you plan for your retirement.
About the author
Marius Fourie - Director & Business Advisor
As Director and Business Advisor, Marius uses his accounting expertise and empathetic skills to work directly with business owners and help them feel at ease with their finances.
Marius saw a common need in clients that just wasn’t being met by accounting providers.
That need was for clear, open communication and streamlined accounting services that didn’t come padded out with any unnecessary features.
Business owners just don’t have time to compare different accounting firms to see which one has the best packages with the best inclusions (many of which they would pay for but never use).
Key Takeaways
Retirement Needs Are Personal
There’s no one-size-fits-all figure — your retirement target should reflect your lifestyle goals and personal circumstances.
Income Matters More Than a Lump Sum
Reliable, sustainable income in retirement is more important than focusing on a single savings number.
Superannuation Plays a Central Role
For most Australians, super is the primary retirement asset, making contribution strategies and investment choices critical.
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Frequently Asked Questions
Is there a set amount everyone needs to retire comfortably?
No. The amount you need depends on your desired lifestyle, living costs, health, housing situation and how long your retirement may last.
How does lifestyle affect how much I need to retire?
A modest lifestyle requires less income than a more active retirement involving travel, hobbies or supporting family. Your lifestyle choices directly influence the size of your retirement nest egg.
What income sources are available in retirement?
Common sources include superannuation, the Age Pension (if eligible), personal investments, rental income and savings outside super.
How long should I plan for my retirement to last?
Many Australians may spend 20–30 years or more in retirement, so planning for longevity is essential to avoid running out of funds.
Should I review my retirement target over time?
Yes. Retirement goals should be reviewed regularly as circumstances, income, expenses, markets and legislation change.
How much money do I need to retire comfortably?
There’s no single number, because it depends on your lifestyle goals, living costs, debts, and whether you’ll rely on superannuation, investments, or the Age Pension. A financial advisor can help you work out a clear retirement target and cash flow plan based on your personal situation.
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