How Much Super Do I Need To Retire at 65?

The amount of super you need in order to retire at 65 is not as much as you think.

In saying that, the amount of income you are aiming for in retirement will dictate how much you need to retire.

But, for most of you, I think you’ll be pleasantly surprised.

How Much Super Do I Need to Retire at 65?

The amount of super you need to retire at 65 largely depends on the level of retirement expenses you would like to cover and the investment returns you expect to receive.

The other factor that will influence the amount of super you need is whether you are single or a member of a couple, as this will not only help determine your expenses throughout retirement, but will also affect any social security entitlements.

In order to calculate the precise amount of super that you need to retire at 65, I’m going to assume that you receive an investment return of 6% p.a. and inflation is 3% p.a.

We’ll also assume that a single person needs $51,000 per year and a couple needs $72,000 per year in retirement to live a comfortable retirement lifestyle, as defined by the Association of Superannuation Funds of Australia.

So, how much does a single person and a couple need to retire at 65?

Related Article: How Long Will My Money Last in Retirement?

How Much Super Does a Single Person Need to Retire at 65?

For a single person to retire at 65 and live a comfortable lifestyle in retirement for 30 years, the amount of super needed would be $725,000.

This would allow expenses of $51,000 per year, increasing with inflation, to be covered until age 95.

How Much Super Does a Couple Need to Retire at 65?

For a couple to retire at 65 and live a comfortable lifestyle in retirement for 30 years, the amount of super needed would be $765,000, combined.

This would allow expenses of $72,000 per year, increasing with inflation, to be covered until age 95.

How Much Super Do You Really Need to Retire?

The figures above are general only and every situation is different. You might be content with a more modest retirement lifestyle, meaning you would need less super at age 65 to retire. Or, you might prefer to live large in retirement, which means you would need considerably more.

The point is, your situation will dictate how much super you need to retire at 65. And, to get what you want, you may find yourself compromising on a few things to get there.

For instance, would you work longer to get your ideal retirement income? Or, would you settle for a lower retirement income, so that you can retire sooner?

There are always options.

Our financial planning firm, Toro Wealth, specialises solely in helping 50 to 70 year-olds optimise their financial position in the lead up to retirement. If you’re interested in learning more about our service and cost, click here.

Frequently Asked Questions

Listed below are some frequently asked questions around the amount of super you need to retire at 65.

Can I Retire at 65 With $500,000?

If you retire at 65 with $500,000, you’d be able to cover retirement expenses of approximately $47,000 p.a. for 30 years if you are single and $62,000 p.a. if you are a couple, based on an average investment return of 6% p.a. and inflation of 3% p.a.

Can I Retire at 65 With $750,000?

If you retire at 65 with $750,000, you’d be able to cover retirement expenses of approximately $52,000 p.a. for 30 years if you are single and $71,000 p.a. if you are a couple, based on an average investment return of 6% p.a. and inflation of 3% p.a.

Is $1,000,000 Enough to Retire at 65?

If you retire at 65 with $1,000,000, you’d be able to cover retirement expenses of approximately $60,000 p.a. for30 years if you are single and $78,000 p.a. if you are a couple, based on an average investment return of 6% p.a. and inflation of 3% p.a.

How Much Super Should I Have at 65?

The amount of super you should have at 65 based on the average superannuation balances by age in Australia is approximately $415,000 for males and $370,000 for females, according to 2022 research conducted by the Association of Superannuation Funds of Australia.

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