How much super do you need to retire on $50,000 a year?

One of the most commonly asked questions about retirement is "how much will I need to live the lifestyle I want?"

While there is no ‘one number fits all’ answer, as everyone’s situation is different, we can give you a pretty good idea of what you might need for your desired income in retirement.

$50,000 per year is a fairly common goal for a retirement income, sitting just under the $51,814 figure recommended by the Association of Superannuation Funds of Australia (ASFA) for a comfortable retirement for a single person.

​​To retire at age 60 with an income of $50,000 per year, a single person would need a super balance of around $515,000 (based on receiving a combination of Age Pension payments and super drawdown). To do the same at age 65 you would need around $360,000. These figures are determined using the Retirement Calculator as at December 2024.*

How much you’ll need will vary depending on the age you retire (and if you are single or part of a couple).

How much you need for $50,000 per year: different retirement ages

The super balance you’ll need for $50,000 per year will vary depending on what age you plan to retire at (the younger your retirement age, the more super you’ll need). 

This table gives you an idea of how much you’ll need as a single person for a few different retirement ages. Again, the numbers are based on our Retirement Calculator.*

Note, the above is based on you receiving a combination of Age Pension payments and super drawdowns when you retire.

How much you’ll need may be different if you’re part of a couple, as you and your partner may both be eligible for Age Pension payments, which would add to your combined income.

Factors to consider 

It’s important to remember that these figures are just a guide. When it comes to working out your own retirement expenditure there are a number of things to consider: 

• When you’d like to retire 

• How long you expect your savings to last 

• How your super is invested 

• If you have other sources of income outside super.  

Taking these factors into account, as well as investment returns, annual inflation rates and fees, will help you create a clearer picture of what’s needed to enjoy the retirement lifestyle you’re aiming for. 

Strategies to help you reach your superannuation goal 

Building a superannuation balance that supports $50,000 per year in retirement may seem daunting, but with the right strategies, it’s achievable: 

    1. Voluntary Contributions 

Adding extra contributions to your super can significantly boost your retirement savings. Whether it’s a lump sum or regular payments, these voluntary contributions can make a difference, especially with the power of compound interest. Note that limits apply.

    2. Salary Sacrifice 

Salary sacrificing into your super reduces your taxable income while increasing your superannuation balance. It's a great way to save if you can afford to direct some of your pre-tax income into your super account. 

    3. Investment Options 

Review your super fund’s investment options. Depending on your risk tolerance and how far away you are from retirement, a mix of growth, balanced, or conservative investment options can help maximise your returns. 

    4. Government Co-Contributions 

If you’re a low-to-middle-income earner, the government may contribute up to $500 to your super if you make after-tax contributions. 

    5. Spouse Contributions 

Boosting your partner's super can be beneficial if one partner has a significantly lower balance. Spouse contributions or splitting your super contributions can help balance your combined retirement savings. 

Age Pension payments in retirement 

When thinking about how much super you’ll need for your retirement, it’s important to keep in mind that most Australians will combine income from super drawdowns with Age Pension payments in their retirement. 

You should review the eligibility requirements for the Age Pension to see if you will qualify. 

For a single person, the full Age Pension currently sits at around $29,000 per year, while for a couple, it’s around $44,000. These numbers apply as at September 2024.

Even if you only receive a part pension, this extra income can help extend your super savings, providing peace of mind as you navigate retirement.