By Ravi Moolchandani, Principal Financial Adviser / Director, Radiance Wealth
Reading time: ~8 minutes | Updated March 2026 | Melbourne, Australia
It is the most common question I hear from people in their 50s and early 60s: “Ravi, how much super do I actually need to retire?”
If you have searched for the answer online, you have probably found a dozen different numbers — and walked away more confused than when you started. That is because there is no single magic number. The right amount depends entirely on how you want to live, where you live, your household expenses, and your goals.
But here is the good news: you do not need to guess. With the right framework and a clear understanding of your own situation, you can work out a realistic target — and build a plan to get there. That is exactly what we help people do at Radiance Wealth every day.
In this guide, I will walk you through the key benchmarks, the factors that shift the number up or down, and the strategies that can make a real difference in the years before you retire. If you want the complete picture, this article draws on our comprehensive Pre-Retiree’s Guide to Building Confidence for Retirement — a detailed resource covering everything from lifestyle planning to super strategy for Australians aged 50 to 64.
1. Why there is no magic number — and why that is actually good news
People ask me for a single figure all the time. And I understand the appeal — a neat dollar amount you can aim for feels reassuring. But the reality is more nuanced, and once you understand why, it is actually liberating.
The amount of super you need depends on your individual circumstances: your spending habits, whether you own your home, your health, whether you have a partner, how much you want to travel, and how long your money needs to last. A couple who own their home in Wheelers Hill and enjoy one overseas trip a year has a very different target to a single renter in St Kilda who plans to travel extensively.
What actually matters is not a lump sum in isolation — it is income. Specifically, you need to understand your target annual retirement income and the assets that will produce it. If you have assets that can generate your income, you are in a strong position. The lump sum is just the engine; the income is what funds your life.
This is why a personalised retirement planning conversation is so valuable. It is not about hitting someone else’s number. It is about understanding yours.
2. The ASFA benchmarks: what “comfortable” and “modest” actually mean
The Association of Superannuation Funds of Australia (ASFA) publishes the most widely used benchmark for retirement spending in Australia. As of the December quarter 2025, here is what the numbers look like for homeowners aged 65 and over:
| Lifestyle level | Couple (per year) | Single (per year) |
| Comfortable | $77,375 | ~$54,800 |
| Modest | $50,866 | $35,199 |
Source: ASFA Retirement Standard, December Quarter 2025. Assumes homeownership.
A comfortable retirement includes private health insurance, a reasonable car, regular dining out, domestic holidays and occasional international travel, and a good overall standard of living. A modest retirement covers the basics — essential healthcare, a cheaper car, limited dining out, and one domestic holiday a year.
In terms of lump sums, ASFA estimates you need approximately $730,000 for a couple or $630,000 for a single person at the comfortable level. For a modest retirement, it is $120,000 for a couple and $110,000 for a single — with the Age Pension making up most of the income.
What this means for Melbourne
These are national figures, and Melbourne’s cost of living adds some pressure. Council rates in the eastern and south-eastern suburbs, private health insurance premiums, and the cost of eating out in Melbourne all sit above the national average. From my experience working with Melbourne clients, the average couple spends about $72,000 a year after retirement at a moderate level — which lines up closely with the ASFA comfortable standard.
If you are serious about international travel — and most of my clients are, typically planning at least one four-to-five-week overseas trip each year — you should be planning towards the comfortable end of the scale, not the modest end.
3. Your spending needs change — the three phases of retirement
Here is something that surprises many people: your spending in retirement is not constant. It changes significantly as you age. At Radiance Wealth, we plan around three distinct phases:
| Phase | What life looks like | Income needs |
| Ages 60–67 | Still working part-time, travelling overseas annually, active lifestyle | Higher — funding travel and bridging the gap before Age Pension |
| Ages 67–75 | Less overseas travel, more time with grandchildren, local activities | Moderate — overseas travel reduces, local spending continues |
| Ages 75–85+ | Mostly local, travel tapers off, potential health and care costs | Lower lifestyle spending, but possible increase in care expenses |
Understanding these phases is reassuring. You do not need your retirement savings to fund peak spending for 25 years straight. Your income needs naturally reduce over time — though health costs can increase in the later years. A good retirement plan accounts for all three phases, not just the first one.
This phased approach also means your investment strategy needs to evolve. During the accumulation phase in your 50s, growth-focused investments make sense. As you move into retirement, the conversation shifts towards income-producing assets. Getting the timing of this transition right — including the capital gains tax implications — is exactly the kind of nuance a financial adviser helps you navigate.
For a deeper dive into how this transition works, see our full Pre-Retiree’s Guide, which covers the shift from growth to income in detail.
4. Five factors that shift how much super you need
The ASFA benchmarks are a useful starting point, but your actual target depends on several key factors:
Home ownership
The ASFA figures assume you own your home outright. If you are renting, your retirement costs are substantially higher. In Melbourne’s rental market, this is an increasingly important consideration. Paying off the mortgage before retirement — or having a clear plan to do so — is one of the most impactful things you can do.
Your desired retirement age
Retiring at 60 instead of 67 means seven more years of funding your lifestyle before the Age Pension kicks in. That is a significant gap. Your superannuation preservation age determines when you can access your super (60 for most people born after 1 July 1964), but the Age Pension does not start until 67. Planning for this gap is one of the most important things we do with clients.
Health and dependants
Unexpected health issues, caring responsibilities for ageing parents, or supporting adult children can all change the equation. From around age 58 to 62, many pre-retirees start thinking about whether they can help their kids — contributing to a mortgage deposit, paying off a HECS debt, or helping with a car purchase. An adviser helps you model whether this is feasible without compromising your own retirement.
Age Pension eligibility
Whether you qualify for the full Age Pension, a part pension, or no pension at all depends on your total assets and assessable income. As at March 2026, the full Age Pension rate is approximately $1,178.70 per fortnight for singles and $1,777 per fortnight combined for couples. Many retirees use a combination of their own super savings and a part pension.
Longevity
Australians are living longer than ever. A man aged 60 today can expect to live another 24 years on average, and a woman another 27 years. That means your retirement savings may need to last 25 to 30 years. If you have not modelled whether your money will last that long, you are taking a gamble.
5. Practical strategies to close the gap in your 50s
If you are reading this and thinking your super balance is not where it needs to be, you are not alone — and you still have time. The years between 50 and 64 are the critical window to make a real difference. Here are the most powerful levers available to you:
Boost your super contributions
The concessional (before-tax) contributions cap for 2025–26 is $30,000 per year, which includes your employer’s super guarantee (now 12%), salary sacrifice, and personal deductible contributions. These are taxed at just 15% inside super, which is significantly less than most people’s marginal rate.
If your total super balance is under $500,000, you may also be able to use catch-up contributions — carrying forward unused cap amounts from the last five years. This can allow you to contribute $80,000 or more in a single year. For detailed guidance on contribution strategies, see our superannuation and SMSF advice page.
Get into the right investment option
This is where I find the biggest gap. The vast majority of people I see are in a default super investment option that is too conservative for their age and time horizon. If you joined your employer’s fund at 25 and never changed your investment option, you have probably been sitting in a balanced or moderate profile for decades. In my experience, being in the wrong option at a young age can cost you hundreds of thousands of dollars by the time you reach retirement.
If you are 50 with 10 to 15 years until retirement, you still potentially have 30 or more years of life ahead of you. That is a long investment horizon. Being too conservative too early costs you in missed growth.
Consolidate your super accounts
If you have more than one super fund, you are paying multiple sets of fees and insurance premiums. Consolidation is one of the simplest ways to protect your balance. But always check for any insurance you might lose before consolidating.
Review your insurance inside super
From age 50 onwards, life insurance, TPD, and income protection premiums inside super increase significantly every year. If you are not reviewing these regularly, they can quietly erode your balance. Many people are over-insured for their stage of life, or paying for cover they no longer need.
Consider the tax angle
Super is one of the most tax-effective vehicles available. Earnings inside super are taxed at a maximum of 15%, compared to your marginal rate outside super. But there are also strategies outside super — including investment bonds — that offer a middle ground between tax efficiency and accessibility. Your adviser helps you find the right mix.
6. Why a calculator is not enough
There are some useful online tools available, including ASIC’s Moneysmart Retirement Planner and the calculators on our own website. These are a good starting point, especially if you are diligent about tracking your expenses.
But they have significant limitations. A standard online calculator will not factor in your capital gains tax liability, inflation adjustments, your specific risk profile, the interaction between different asset types, or the strategies and structures that could make a real difference — like catch-up super contributions, transition to retirement income streams, investment bonds, downsizer contributions, or age pension optimisation.
Part of the value of seeing a financial adviser is that we know the right questions to ask — not just the right answers to give. A Statement of Advice from a qualified financial planner accounts for all the moving parts and gives you a genuine, customised plan.
“It’s all moving wheels, actually. All of them have to move together — your spending, helping the kids, and what’s left in your estate. That’s what makes this planning so important.” — Ravi Moolchandani, Radiance Wealth
Ready to find out your number?
If you are in your 50s or early 60s and want to know whether you are on track for the retirement you want, the best next step is a conversation. At Radiance Wealth, we specialise in helping Melbourne pre-retirees turn uncertainty into a clear, confident plan.
You do not need to have everything figured out before you call. You just need to be willing to start.
Book a pre-retirement planning conversation with Ravi or Sunny.
Call (03) 9590 6341 | Visit radiancewealth.com.au/contact-us
Suite 2.04/202 Jells Rd, Wheelers Hill VIC 3150