The ASFA Retirement Standard is often quoted as a guide to retirement spending. But does the comfortable figure match how your household actually lives? Here is what to consider.
A national retirement figure can help you get your bearings. To understand whether it fits your household, you need to look at the costs behind it and compare them with the retirement you have in mind.
Perhaps you want to travel while you are well enough to enjoy it. You might prefer more time at home, with enough room in the budget to visit family and keep doing the things you enjoy. Those plans can lead to quite different spending needs.
The word 'comfortable' is personal. Giving it some detail is a useful first step towards understanding what retirement could cost you.
What the current figures tell us
The Association of Superannuation Funds of Australia, or ASFA, publishes retirement spending benchmarks. Its June quarter 2026 figures, released in September, estimate the following annual spending for a comfortable lifestyle for homeowners aged 65 to 84.
| Household | Annual spending |
|---|---|
| Single person | $56,166 |
| Couple combined | $78,998 |
ASFA's September update highlighted rising electricity, healthcare and insurance costs. That makes it timely to revisit your own bills, particularly if your retirement budget was prepared some time ago.
These amounts describe a year's spending. They are different from the total savings you might need when you stop working.
Look at the assumptions behind the headline
The comfortable benchmark assumes you own your home outright and are relatively healthy. It allows for private health insurance, a car, leisure activities and some travel. ASFA also publishes separate budgets for older retirees and for a modest lifestyle while renting privately.
If you will still be paying rent or a mortgage, the homeowner figure will need careful adjustment. The same applies if you have substantial health expenses or plan to provide regular financial help to family.
Look through the individual categories before changing the total. ASFA already includes allowances for holidays, household appliances and home maintenance. Compare those allowances with your own expectations so that you do not count the same expense twice.
Build a budget around your own household
Start with your bank and credit card statements. A full year can help you pick up bills that arrive quarterly or annually, alongside the expenses you see every week. Moneysmart recommends checking statements and including irregular costs when preparing a budget.
Then consider what will change when work stops. Commuting and work clothing may cost less, while more time for hobbies or travel could mean spending more elsewhere. Include any housing repayments and the support you expect to give children or grandchildren.
If you are planning as a couple, give each person time to describe what they want an ordinary week to look like. One person's idea of retirement may involve frequent trips away; the other may be looking forward to being settled at home. Understanding that early helps you build a budget you both recognise.
Make room for the expenses that come in lumps
An average month will not tell you when the car needs replacing or a larger dental bill arrives. List foreseeable expenses separately, with an approximate amount and when you expect to pay them.
For example, imagine a household estimates its regular spending at $5,200 a month, or $62,400 a year. If that amount excludes an $8,400 holiday and $5,000 of planned home repairs, spending for that year would be $75,800. This is a hypothetical budgeting example, not a suggested spending target or an assessment of whether that household can retire.
The repairs may not recur the following year, while other costs could take their place. Recording the timing helps you see when you will need money available. It also keeps known expenses separate from a reserve for things you cannot yet predict.
Connect your spending to your retirement income
Once you have an annual budget, the next question is how it could be funded and for how long. That may involve super withdrawals, other savings, investment income, some continued work and the Age Pension if you qualify.
ASFA also publishes estimated super balances for a comfortable retirement: currently $630,000 for a single person and $730,000 combined for a couple retiring at 67. Its modelling assumes home ownership, drawing down capital and receiving a part Age Pension, alongside assumptions about investment earnings and future costs.
Those assumptions may differ from your circumstances. Retiring earlier, wanting to preserve capital or being ineligible for the Age Pension can change the amount you need. Reaching a published savings figure does not, by itself, establish that your planned spending is affordable throughout retirement.
Questions to discuss before settling on a number
- Does our budget reflect the way we want to spend our time?
- Have we included housing costs, family support and larger planned expenses?
- Which costs could we adjust if bills rise or investment returns disappoint?
- How might our spending change if our health or living arrangements change?
- When will each source of retirement income become available?
You do not need a perfect forecast to begin. A realistic first budget gives you something specific to discuss and review as your plans develop.
At Wealth Optix, we begin with your circumstances and what matters to you. If you would like help exploring how your spending plans fit with your retirement options, you can request a conversation with Marissa.
Request a conversation with Marissa
General information
This article provides general information only and does not take into account your personal objectives, financial situation or needs. Consider your circumstances and seek appropriate financial advice before acting. The example is hypothetical. ASFA figures are benchmarks, not a guarantee of retirement outcomes.
Wealth Optix Pty Ltd is a Corporate Authorised Representative (No. 001321543) and Marissa de Saint Quentin is an Authorised Representative (No. 001003145) of Spark Advisors Australia Pty Ltd ABN 34 122 486 935 AFSL 380552.