Will you be comfortable with comfortable?

According to the Australian Superannuation Fund Association’s (ASFA’s) Retirement Standard¹, to enjoy a comfortable retirement, singles need $595,000 in savings at retirement (aged 67) to generate a yearly income of $51,805. Similarly, couples need $690,000 at retirement to generate $73,077 a year. These figures assume retirees own their own home and don’t need to pay rent or make mortgage payments.

Everything starts with lifestyle

BT’s Technical & Strategy Consultant Tim Howard says ASFA’s lump sum figure is a great start. But how much money you need to retire is ultimately about your lifestyle expectations, your annual income and your age.

"A comfortable retirement means different things to different people," Tim says. "To some it might mean regular travel, to others prioritising time with family is their definition of a comfortable retirement."

Reap the benefits of compound interest

No matter how much you need to save to retire the way you want to, the earlier you start contributing to your super fund the better.

"The power of compounding returns can help you increase your retirement savings, as can spending less than you earn and consciously saving the difference,” says Tim. "Compounding involves adding any earnings from your investment back into it, essentially investing more, allowing you to generate greater returns over time."

Already 50 and not feeling "comfortable?"

Here are four steps you can take at any age to build your retirement savings.

• Educate yourself about choices you can make with your super and potential strategies you can use to build your nest egg. Use BT’s Retirement lifestyle calculator to see the potential impact making additional contributions could have on your super balance over time. A transition-to-retirement strategy² could also help you contribute extra money into the tax-effective super environment.
• Look at your current lifestyle and see if you could make changes so you contribute more of your disposable income into your super fund.
• Talk to a financial adviser. Consider whether you need a one-off piece of advice or an ongoing relationship with an adviser, depending on your situation.
• Think about how your assets outside super can also help fund your retirement.

Get moving

Tim says there’s an opportunity for more Australians to consider how to fund their retirement.

“Think about when you want to stop work and the lifestyle you want to live to help determine how much you need. This may be challenging at first, but having a plan and breaking things down into simple, achievable steps may help you achieve your retirement goals down the track.”

References

1. https://www.superannuation.asn.au/consumers/retirement-standard/ accessed 23/5/2025
2. The Australian Taxation Office, accessed 23/5/2025, https://www.ato.gov.au/individuals-and-families/jobs-and-employment-types/working-as-an-employee/leaving-the-workforce/transition-to-retirement