The ASFA Retirement Standard estimates a comfortable retirement costs approximately $54,837/year for singles and $77,375/year for couples (December 2025 quarter), assuming the retiree owns their home outright. The corresponding lump sum targets at age 67 are roughly $630,000 for singles and $730,000 for couples, assuming Age Pension contributes alongside super. Renters need substantially more — potentially $200,000 or more on top of these figures.
For most Australians approaching retirement, the central question is simple: how much do I actually need? The most widely used answer in the Australian financial planning industry comes from the ASFA Retirement Standard — a quarterly publication by the Association of Superannuation Funds of Australia (ASFA) that sets out detailed budget estimates for two lifestyle levels at different life stages, along with estimates of the superannuation lump sum required to fund each.
What does the ASFA standard measure?
The standard distinguishes two lifestyle levels. A "modest" retirement covers a basic but reasonable lifestyle — essentials, limited discretionary spending, primarily domestic activities and travel. A "comfortable" retirement covers a broader range of leisure, more frequent dining out, domestic and some international travel, and the ability to afford occasional luxuries. The standard is published for both singles and couples, and provides separate estimates for the active retirement years (65–85) and the later years (85 and over), where activity levels and spending are typically lower.
A critical assumption underlies the entire standard: the retiree owns their home outright. All budget estimates are net of tax and assume no rent or mortgage. This matters enormously for the lump sum targets, as discussed below.
What are the approximate ASFA budget figures?
ASFA updates the standard quarterly to reflect actual cost movements, so specific figures change each quarter. Based on recent ASFA publications, approximate annual budgets for the active retirement years (65–85) are:
What are the latest published figures for the December 2025 quarter?
| Standard | Single | Couple |
|---|---|---|
| Comfortable | $54,837/year | $77,375/year |
Source: ASFA, https://www.superannuation.asn.au/wp-content/uploads/2026/02/ASFA_Retirement_Standard_Budgets_Dec-25_quarter.pdf. Modest figures sit roughly two-thirds of comfortable, also published in the same release. Figures are updated each quarter and have been rising broadly in line with CPI.
For most retirees, the comfortable standard is the relevant benchmark. It reflects a moderate, middle-class lifestyle — not luxury. It includes private health insurance, a reliable car, an annual domestic holiday and periodic overseas travel, regular restaurant meals, and adequate health expenditure. It is not extravagant.
The modest standard, by contrast, allows a reasonable basic retirement but restricts to domestic travel, limits entertainment and dining, and provides less cushion for unexpected costs. Importantly, the modest standard exceeds what the Age Pension alone provides — supplementary superannuation income is still required to meet the modest budget.
What are the lump sum targets?
ASFA also publishes the super balance required at age 65 to fund each lifestyle for life, assuming the Age Pension contributes alongside. Based on recent ASFA publications:
Updated comfortable-retirement lump sum targets (ASFA, Dec 2025 quarter release): $630,000 for singles (up from $595,000) and $730,000 for couples (up from $690,000) at age 67. These assume specific investment return and longevity assumptions and a partial Age Pension supplement; check current ASFA publication for methodology and any updates.
The lump sum targets assume the Age Pension contributes meaningfully. For a single retiree on the comfortable standard, the Age Pension provides roughly $30,000 a year (as of 2025-26 rates), and the super balance needs to fund only the gap to the ~$52,000+ total. The lump sum figures look relatively modest precisely because they are not designed to replace the Age Pension — they sit alongside it.
For retirees whose assets are above the Age Pension assets test cut-off — where Age Pension is reduced or nil — the lump sum required to fund the same lifestyle is considerably higher, because super must provide the full income rather than just the top-up. This is one reason the assets test threshold is such a pivotal number in retirement planning: a dollar above it doesn't just lose pension entitlement, it shifts the full burden of funding lifestyle from the Age Pension–super combination to super alone.
What is the renter adjustment?
The ASFA standard's homeownership assumption is its most consequential limitation. Retirees who rent in retirement face two additional costs that the standard doesn't cover: ongoing rent, and the additional capital that would have been needed to generate an income stream sufficient to pay that rent. A single retiree paying $20,000 a year in rent needs not just the ASFA comfortable lump sum but also enough additional capital to fund that rent indefinitely. Rough estimates suggest renters may need $200,000 or more on top of the standard's lump sum figures, depending on location and rent levels — and this gap is structural, not addressable by simply adjusting the ASFA number slightly. Retirees who rent, or who will rent if property prices prevent homeownership, need a genuinely different planning framework.
How should you use the standard practically?
The most useful application of the ASFA standard is as a comparison point for your own spending. Compare your current household expenditure with the relevant comfortable or modest figure. If you spend significantly more than the comfortable benchmark now, you will likely spend more in retirement too, and the ASFA lump sum targets will understate your needs. If you spend roughly around the comfortable level, the standard is a reasonable planning anchor. And if you spend below the modest level, either your lifestyle preferences genuinely sit there, or there is a spending constraint worth examining.
The standard is a starting point, not a destination. Personal health costs, family obligations, geographic location, specific lifestyle goals, and aged care risk all require individual assessment beyond what a standardised benchmark can provide. For later retirement years in particular, the standard's estimates may understate potential residential aged care costs — a gap worth considering separately.
Quarterly updates mean that a figure quoted today will differ from one quoted in six months. Any planning conversation should refer to the current quarter's published figure rather than a number recalled from a year ago.
Sources
Key takeaways
- The ASFA Retirement Standard, published quarterly, sets out 'modest' and 'comfortable' annual budget benchmarks for singles and couples, separately for the active years (65–85) and later years (85+) — but it assumes the retiree owns their home outright, with no rent or mortgage.
- As at the December 2025 quarter, the comfortable standard for the active retirement years is approximately $54,837/year for a single and $77,375/year for a couple; the modest standard sits roughly two-thirds of that, still above what the Age Pension alone provides.
- ASFA's corresponding lump sum targets at age 67 — approximately $630,000 for singles and $730,000 for couples for the comfortable standard — assume the Age Pension contributes alongside super, so they represent a top-up amount rather than the full cost of retirement.
- Retirees above the Age Pension assets test cutoff need a substantially higher lump sum than ASFA's published figures, because super must fund the full lifestyle rather than just the gap left by a reduced or nil pension.
- The homeownership assumption is the standard's most significant limitation — retirees who rent may need $200,000 or more in additional capital on top of the standard ASFA lump sum to fund rent indefinitely, a gap that requires a genuinely different planning framework.
Frequently asked questions
How much does a comfortable retirement cost according to ASFA?
As at the December 2025 quarter (released February 2026), ASFA's comfortable retirement standard is approximately $54,837 a year for a single person and $77,375 a year for a couple, for the active retirement years (65–85). This assumes the retiree owns their home outright with no rent or mortgage, and covers a moderate middle-class lifestyle — private health insurance, a reliable car, domestic and periodic overseas travel, and regular dining out — not a luxury lifestyle. Figures update each quarter, so the current published number should always be checked.
How much superannuation do I need to retire comfortably according to ASFA?
ASFA's lump sum targets for the comfortable standard at age 67 are approximately $630,000 for a single person and $730,000 for a couple, based on the December 2025 quarter release. These figures assume the Age Pension contributes alongside your super — they represent a top-up amount, not the full cost of funding retirement. If your assets are above the Age Pension assets test cutoff, you'll need substantially more, since super would need to fund your full lifestyle rather than just the gap.
Does the ASFA Retirement Standard apply to retirees who rent?
Not accurately. The ASFA standard's key assumption is that the retiree owns their home outright, so its budget and lump sum figures don't include rent. Retirees who rent in retirement need both the ongoing rent itself and additional capital to fund that rent indefinitely — rough estimates suggest this could add $200,000 or more on top of the standard ASFA lump sum, depending on location and rent levels. This is a structural gap, not something a small adjustment to the ASFA figure can fix, so renters need a different planning framework.
What's the difference between the modest and comfortable ASFA standards?
The modest standard covers a basic but reasonable lifestyle with limited discretionary spending and mostly domestic activities, sitting at roughly two-thirds of the comfortable figure. The comfortable standard covers a broader range of leisure, more frequent dining out, domestic and some international travel, and occasional luxuries. Importantly, even the modest standard exceeds what the Age Pension alone provides, so supplementary superannuation income is still needed to meet it.