For years, Australians have been told they need $1 million in superannuation to retire comfortably. It’s a figure that’s often repeated in the media and by financial commentators, but is it really necessary? Or is it just another retirement myth that causes unnecessary stress?
Let’s break down the facts and see what’s really required for a financially meaningful retirement in Australia.
The idea that you need $1 million in super to retire well is widespread, but it doesn’t reflect the reality for most Australians. In fact, recent research shows that 94% of Australians who retired in the past five years did so with less than $1 million in super. Many retirees are living comfortably with much less, especially if they own their home and are eligible for the Age Pension.
The Association of Superannuation Funds of Australia (ASFA) provides a useful benchmark with its Retirement Standard. As of June 2025, ASFA estimates that a comfortable retirement—which includes regular leisure activities, travel, private health insurance, and a reliable car—requires an annual income of about $75,319 for couples and $53,289 for singles.
To achieve this, ASFA suggests super balances of $690,000 for couples and $595,000 for singles at retirement age (67), assuming you’re eligible for a part Age Pension, and you own your own home. These figures are well below the $1 million mark.
The Age Pension is a crucial part of retirement income for many Australians. Around two-thirds of people aged 65 and over receive some form of government support. When combined with superannuation and other assets, the pension can significantly reduce the amount of super you need to maintain a comfortable lifestyle.
For example, Super Consumers Australia found that a single person may only need around $310,000, and a couple $420,000, to maintain their living standards in retirement—assuming they own their home and receive the Age Pension.
Retirement isn’t one-size-fits-all. Your ideal retirement might include overseas travel, frequent dining out, or pursuing hobbies. Or you might prefer a quieter lifestyle focused on family and community. These choices dramatically affect how much money you’ll need.
Other factors—like whether you own your home, your health, and your life expectancy—also play a big role in shaping your retirement needs.
In short: No, you don’t need $1 million in super to have a financially meaningful retirement. While having more super can offer greater flexibility and security, most Australians retire with less and still enjoy fulfilling lives. The key is to plan around your own lifestyle goals and make the most of available resources, including the Age Pension.
Instead of fixating on a million-dollar goal, focus on building a retirement plan that reflects your personal circumstances. Use tools like retirement calculators and seek financial advice.
Remember, retirement is about more than just money—it’s about living well, with purpose and peace of mind.