In this guide
One of the biggest questions asked about super is the balance to aim for. It is difficult to commit to saving without a clear target, so thinking about your income goal and the balance you will need to fund it is a great place to start your retirement planning.
If you are single and dreaming of regular travel and restaurant dining for your post-work life, perhaps $80,000 a year aligns with your retirement budget.
Research suggests couples need combined income of around 40% more than a single person to achieve the same lifestyle, so $112,000 per year should suit a couple looking to enjoy similar pursuits.
Crunching the numbers
The super balance required to provide a set level of income varies depending on many factors including when you plan to retire, how long you need your money to last, how your super is invested, and whether you have other investments outside super that will provide some of your retirement income.
The tables below show the super balance required to provide an annual income of $80,000 for a single or $112,000 for a couple retiring at age 60 or 67.
It is assumed that you apply for and receive the Age Pension as soon as you are eligible, that is, when the value of your assessable income and assets has reduced below the maximum levels permitted under the Age Pension means tests.
We have used ASIC’s Moneysmart retirement planner to model outcomes based on investing the entire balance in an account-based pension, in the investment options shown.
The results assume you have $25,000 in assets outside super and will withdraw the entire balance of your account-based pension by age 92.
Once the balance is exhausted, future income will come from the Age Pension alone.
When interpreting the results of any retirement calculator it is important to consider the assumptions that have been used. The Moneysmart Retirement planner builds in the same investment return and inflation rate for every year but reality is not so consistent. True variation over the years means the retirement income these balances will provide is likely to be significantly different in the real world.
Transfer balance cap
Keep in mind that the transfer balance cap limits the amount of money you can shift into a super pension account. The cap is currently $2 million and is set to rise to $2.1 million from 1 July 2026.
Excess amounts need to remain in a super accumulation account or outside super, where earnings will be taxed. The interaction of the transfer balance cap with other income and investments can be complex, so we advise you to seek professional advice if you feel it may apply to you.
The transfer balance cap applies per person, which means a couple could transfer up to $4 million to pensions by each using the maximum cap available to them, if both partners have a super balance that has reached the limit.
Where to go for more
We hope the figures in the tables below will get you thinking about the ballpark you need to aim for, but remember that this data represents a small selection of possible outcomes and cannot substitute for a personalised calculation.
To build a picture of your own circumstances, use a good quality retirement projection tool such as the Mercer Retirement Income Simulator. This calculator includes the option to stress test your results with different patterns of investment returns that could occur in the real world. Make sure you include as much information as possible about your circumstances, including investments outside super, and review and adjust the assumptions including fees to ensure your projection is as meaningful as it can be.
To help you navigate this and other free retirement planning tools, SuperGuide has developed a range of video demonstrations in the calculators section.
Balance required for retirement at age 60 (by investment type)
| Status and income target | Conservative (5.6% annual return) | Moderate (6.3% annual return) | Balanced (6.7% annual return) | Growth (7% annual return) |
|---|---|---|---|---|
| Single $80,000 per year | $1,375,000 | $1,265,000 | $1,205,000 | $1,160,000 |
| Couple (combined) $112,000 per year | $1,805,000 | $1,650,000 | $1,575,000 | $1,515,000 |
Balance required for retirement at age 67 (by investment type)
| Status and income target | Conservative (5.6% annual return) | Moderate (6.3% annual return) | Balanced (6.7% annual return) | Growth (7% annual return) |
|---|---|---|---|---|
| Single $80,000 per year | $1,125,000 | $1,050,000 | $1,010,000 | $980,000 |
| Couple (combined) $112,000 per year | $1,465,000 | $1,355,000 | $1,295,000 | $1,250,000 |
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