How much will you need?
Things to consider
There's no single magic number you should save in super. Your ideal amount will depend on your personal goals and circumstances, including life expectancy. The longer you live, the more retirement savings you’ll need.
Depending on your circumstances, which include your age and your assets, you may also be eligible for the government age pension. The pension eligibility age is gradually being increased from 65 to 67 years.
Importantly, when answering the question ‘how much super should I have?’, you need to think about the kind of life you want in retirement:
- Do you want to travel? Where to? How often?
- Are you planning to renovate?
- Would you like to be able to eat out?
Even the smallest things, like getting regular haircuts, can make a difference to your budget. Take our quiz to get an idea of the kind of retirement that may suit you.
How will my super account balance change over time?
When considering how much super you’ll need in retirement, and how to make sure you have enough, you need to understand what can affect your super balance.
Investments
Your superannuation fund will invest your super savings into the investment options you choose; if you don’t make a choice, your super will be invested in the default option. Like most industry superannuation funds, NGS Super will let you change your investment option at any time.
Returns from your super investments will vary over time and depending on the movements of investment markets. The total returns from your investments will determine your final super balance. While you can see the historic returns for all of our investment options, it is important to note that past performance is not a predictor of future performance.
Personal contributions
Personal contributions, over and above the superannuation guarantee amounts that you receive from your employer, will make a positive difference to your final super balance. Even small additional contributions can make a significant difference over time.
Tax and super
‘Concessional’ (before-tax) super contributions — amounts your employer pays into your super, and any salary sacrifice contributions you make — are generally taxed at 15%. (There are some exceptions, which you can read about here.)
‘Non-concessional’ contributions, which are amounts paid from after-tax income, aren’t subject to tax.
Once you’ve retired (and if you’re over 60), payments you receive from your super are usually tax free. And investment earnings are always tax-free, regardless of your age. You can read more about tax and super in our Fees, costs and tax guide.
A retirement guide: modest vs comfortable
To provide a guide for the income you may need in retirement, the Association of Superannuation Funds of Australia (ASFA) publishes a retirement standard. It benchmarks the annual budget needed to fund either a comfortable or modest standard of living in retirement — both budgets assume that you own your home outright and are relatively healthy.
What is a modest retirement?
A ‘modest’ retirement lifestyle is considered better than the age pension, but still only allows for the basics. This budget doesn't allow for any overseas holidays or home improvements.
What is a comfortable retirement?
A ‘comfortable’ retirement lifestyle means you can be involved in a broad range of leisure and recreational activities and have money to spend on household goods, private health insurance, a reasonable car, clothes, electronic equipment, and domestic and occasionally overseas holidays.
How much will I need?
The tables below show approximately how much you'll need to save for retirement depending on the lifestyle you're aiming for.
Super balances needed for a comfortable retirement
The lump sums required for a comfortable retirement assume that you will draw down all your capital, and receive a part age pension.
| Category | Savings required at retirement |
|---|---|
| Comfortable lifestyle for a couple | $690,000 |
| Comfortable lifestyle for a single person | $595,000 |
All figures in today's dollars using 2.75% average weekly earnings (AWE) as a deflator and an assumed investment earning rate of 6%. Source: ASFA retirement standard (December 2023 quarter)
If you’re wondering what the ‘average’ super balance is for someone your age, and how you’re tracking, you can check here. It’s important to remember that the definition of ‘average’ can vary depending on the source of the information.
Super balances needed for a modest retirement
The lump sums needed for a modest lifestyle are relatively low due to the fact that the base rate of the age pension (plus various pension supplements) is enough to meet much of the expenditure required at this budget level.
| Category | Savings required at retirement |
|---|---|
| Modest lifestyle for a couple | $100,000 |
| Modest lifestyle for a single person | $100,000 |
All figures in today's dollars using 2.75% AWE as a deflator and an assumed investment earning rate of 6%. The fact that the same savings are required for both couple and singles reflects the impact of receiving the age pension. Source: ASFA retirement standard (December 2023 quarter)
ASFA retirement standard
The ASFA retirement standard has been developed to outline the annual budget needed to fund a comfortable standard of living in your post-work years. It provides benchmarks for both a comfortable and modest standard of living, for both singles and couples, and is updated quarterly to reflect changes to the consumer price index (CPI).
A modest retirement lifestyle is considered better than the age pension, but still only allows for the basics.
A comfortable retirement lifestyle enables an older, healthy retiree to be involved in a broad range of leisure and recreational activities and to have a good standard of living through the purchase of such things as; household goods, private health insurance, a reasonable car, good clothes, a range of electronic equipment, and domestic and occasionally international holiday travel.
| Age pension1 (homeowner) maximum basic rate | ASFA retirement standard2
| ||||
|---|---|---|---|---|---|
| Single | $1,144.40 per fortnight ($29,754.40 per annum) | $1,269.50 per fortnight ($33,133.85 per annum) | $1,995.60 per fortnight ($52,085.09 per annum) | ||
| Couple3 | $1,725.20 per fortnight ($44,855.20 per annum) | $1,828.78 per fortnight ($47,731.08 per annum) | $2,809.84 per fortnight ($73,336.75 per annum) | ||
1. Source: Services Australia as at 20 September 2024 includes the Pension Supplement and Energy Supplement.
2. Source: ASFA retirement standard (June 2024 quarter). It assumes the retiree owns their own home. The budgets quoted in this table are for those aged 65-84.
3. This is the combined total for a couple.
The information provided is general information only and does not take into account your personal objectives, financial situation or needs. Before acting on this information or making an investment decision, you should consider your personal circumstances and read our Product Disclosure Statement and Target Market Determinations for more information. You should also consider obtaining financial, taxation and/or legal advice which is tailored to your personal circumstances before making a decision..
