Financial Planning, Retirement Planning

How Much Do I Need For Retirement?

16 February 2021

3 Steps to Lay the Foundation of your Retirement Plan.

A key part of retirement planning is to answer the question, “How much money do I need for retirement?” and the answer depends entirely on you.

Your retirement is a time when you should get to sit back and enjoy your newfound freedom. Whether that freedom means you finally book your round-the-world dream cruise or spending well-deserved time with the grandkids, your retirement is yours to enjoy.

But having your retirement the way you’ve always dreams requires some amount of money.

Of course, you have your superannuation to rely on but according to The Association of Superannuation Funds of Australia, the average Australian super balance is not enough to fully support your retirement.

If thinking about your retirement conjures a feeling of stress or anxiety, you are not alone.

62% of Australians worry about their retirement income.1

While it’s much easier to ignore your worries and put them in the too-hard basket, there is a far greater opportunity to face your problems and start today.

Like any new chapter in your life, a little planning goes a long way.

Whether you are planning for your retirement 30 years from now or are ready to retire, you can take simple steps to ensure your retirement is a smooth, successful transition.

The first 3 steps to any good retirement plan: 

Step 1: Review your current situation

You can’t plan for your future if you don’t know where you sit now.

Before you start making grand travel or specific budgeting plans for your retirement, stop to take a look at how your finances, retirement savings, and superannuation account are tracking right now.

You have no idea how empowering it is to fully understand your financial situation. This will help you to set goals and put your plan in place.

An important question you can ask yourself is when you want to retire. The Australian retirement age isn’t set in stone.

You can determine your ‘timeline to retirement’ by considering your age, your job, and when you can access your super.

The age at which you can access our superfund depends on your date of birth. According to Australian Super, here is when you can access your super account in Australia:


Date of BirthAge You Can Access Your Super
Before 1 July 196055
1 July 1960 – 30 June 196156
1 July 1961 – 30 June 1962
1 July 1962 – 30 June 1963
1 July 1963 – 30 June 1964
From 1 July 196460

No matter if you’re looking to retire in 3 years or 30, your timeline to retirement can help you to select time-appropriate financial strategies to make the most of your money.

The next step to planning your golden years is to determine how you want to enjoy them.

Step 2: Decide how you want to spend your retirement

Everybody has a different retirement dream. What’s yours?

Do you want to travel the world or move to a small, coastal holiday-vibe town?

If you haven’t thought about what you want to do in your retirement, here are the most popular ways Australians like spending their post-work years:

  • Travelling
  • Exercising and fitness
  • Socialising
  • Volunteering
  • Spending time with family
  • Part-time work

How about your short-term and long-term goals?

Do you want to take a holiday every year?

Do you want to have the financial means to take your grandchildren out and spoil them every week, or maybe you want to be able to afford a new car every ten years?

Your version of a picture-perfect retirement will help you create a plan to reach it. The lifestyle you desire will help you estimate a real number that you will need for retirement.

According to The Association of Superannuation Funds of Australia Retirement Standard, the retirement budget for a comfortable lifestyle differs greatly from a modest lifestyle, which is considered better than living on the age pension.

For a modest lifestyle:

– Annual budget for an individual: $27,987

– Annual budget for a couple: $40,440

For a comfortable lifestyle:

– Annual budget for an individual: $43,901

– Annual budget for a couple: $62,083


Step 3: Put your retirement plan into place

Following this 3-step plan, you will now know your current situation as well as your dreams for retirement.

The next step is creating and applying your plan to help you reach your goals on schedule.

You may like to consider your potential income streams such as:

  • Superannuation: Did you know by adding more to your super fund and making extra super contributions, you could claim a tax deduction?
  • Investments: It is important to know your investment options and the associated tax implications of your investments to ensure you are making the most of your money.
  • Age Pension: Find out if you are eligible for the Age Pension.
  • Part-time or casual work income: Some retirees want to work 1 or 2 days a week for part of their retirement which can provide financial stability.

Want a real estimate of how your retirement income?

Use MoneySmart’s Retirement Planner Calculator to predict your super balance and your projected income so you can master your retirement plan.

Are you still worried about your retirement plan?

That’s completely okay. It’s normal.

But we want to help you be better than normal.

Luckily there’s a proven solution to help ease your concerns.

Australians that engaged with financial advice worried less about their retirement and felt far more confident about their future.

Ready to secure your perfect retirement plan?

Cambio Group’s experienced Financial Advisors are here to help you plan for and enjoy the retirement you deserve. Book your complimentary initial appointment with one of our Retirement Specialist advisors today.



1 National Seniors Australia (January 2020). Retirement Income Worry: Who worries and why?.

Disclaimer: The information (including taxation) in this website does not consider your personal circumstances and is of a general nature only – unless otherwise stated. You should not act on the information provided without first obtaining professional advice specific to your circumstances.

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