How much super do you need to retire in Australia?
The question most Australians avoid because they don't know the answer. According to ASFA's 2025–26 retirement standard, a comfortable retirement for a single person requires approximately $595,000 in superannuation at age 65 — assuming no part-pension and complete home ownership. For couples, the figure is approximately $690,000. These are starting points, not absolutes. Your target depends heavily on your lifestyle, property situation, other investments, and how long you expect to live.
The 4% rule — drawing down 4% of your super balance per year — is the most commonly used retirement income rule of thumb. It's designed to make your money last 25–30 years with a reasonable investment return. At $595,000, the 4% drawdown provides $23,800 per year, which combined with the part age pension takes most retirees close to the comfortable retirement standard.
The superannuation guarantee in 2025–26
Your employer is legally required to contribute 12% of your ordinary time earnings to your superannuation fund in 2025–26. On a $95,000 salary, that's $11,400 per year flowing into your super automatically — before any voluntary contributions you make yourself.
Concessional (pre-tax) contributions are capped at $30,000 per year in 2025–26. This cap includes your employer SG contributions. If your employer is paying $11,400 in SG, you can voluntarily salary sacrifice a further $18,600 before hitting the cap. Contributions are taxed at 15% inside super — well below the 32.5%, 37% or 45% you'd pay on the same income outside super.
The age pension and the means test in 2025–26
The age pension is not an all-or-nothing benefit. A single homeowner in 2025–26 receives the full age pension of approximately $30,640 per year if their assets are below $321,500 (excluding the family home). Above that threshold, the pension reduces by $3 per fortnight for every $1,000 in assets. At a super balance of $595,000, a single homeowner would receive a part pension of approximately $8,400 per year.
This means having more super doesn't necessarily cost you the pension — it just reduces it proportionally. Many Australians with $800,000–$1,000,000 in super still qualify for a meaningful part pension, which provides a guaranteed indexed income floor for life regardless of investment market performance.
Catch-up contributions: If your super balance is below $500,000, you can carry forward unused concessional contribution caps from the previous five years and contribute more than the annual $30,000 cap in a single year. This is powerful for people returning from career breaks, parental leave, or those who had lower incomes in earlier years.