How Much To Retire At Age 65

This question of how much to retire is difficult to answer as people retire at different times with different personal and financial circumstances. You also don’t know how long you will live in retirement.

The page looks at information and research papers regarding funding an income in retirement and is factual in nature which means it does not consider your personal circumstances (ie you may require different retirement age, income and capital amounts to reach your retirement goals).

If you require personal advice you must speak with a qualified financial planner and should not use this page as the basis of making retirement decisions. You can use the menu bar at the top of website to click on state and then city to find a qualified financial planner close to you.

You can also use the FPA find a planner link if you are not near a capital city https://faaa.au/find-a-planner/

Income

Each year The Association of Superannuation Funds of Australia (AFSA) publishes retirement standards calculating what would be considered a modest and comfortable lifestyle income in retirement.

Both budgets assume that the retirees own their own home outright and are relatively healthy.

For those aged 65 the results are below for Mach 2019 quarter for single and couple.

The figures assume that the retiree(s) own their own home and relate to expenditure by the household. This can be greater than household income after income tax where there is a drawdown on capital over the period of retirement. Single calculations are based on female figures.

Source : superannuation.asn.au

The chart below from super Guru breaks this down into actual day to day impacts of income levels and lifestyle in retirement.

Source: superguru.com.au

As you can see there are large lifestyle impacts across a comfortable, modest or age pension only retirement.

Assets

The AFSA (Association of Superannuation Funds of Australia) has made a calculation of the necessary superannuation balances for retirees aged around 65 to help them attain their incomes. When it comes to assets, it is assumed that all capital is drawn down by the end of the retirement period. This is exclusive of personal assets and the family home, which doesn't leave much superannuation for beneficiaries.

The calculations factoring in Centrelink Age Pension assumes that, for instance, a couple wanting a comfortable income upon retirement would need a superannuation of $545,000 at least for every person. The estimation is, however, oblivious of your personal and financial circumstances, so consult a qualified financial planner if you have uncertainties about your retirement planning.

Source: Super Members Council of Australia, formally AIST

If you are planning to have a comfortable retirement income, it's advisable to consult a qualified financial planner to guide you. The information and research on this page is just a guide, and it doesn't consider your personal preferences and financial situation, so it might not be specific to you. There are financial planners in different cities and states, and you can find them using the website menu located at the top of the page.