To retire on an income of $60,000 per year, a single person in Australia generally requires a superannuation balance of approximately $980,000 to over $1 million for a comfortable, self-funded retirement. This figure assumes a balanced investment approach, drawing down capital over 25–30 years, and typically includes owning a home.
Common guidelines state you should replace between 70% and 80% of your pre-retirement income so that you can maintain your standard of living after you leave the workforce. So, if you earn $60,000 a year before retiring, you might need between $42,000 and $48,000 annually in retirement.
A common starting point is to estimate that you'll need about 70% to 80% of your pre-retirement income to maintain your standard of living in retirement. For example, if you earn $150,000 annually while working, you might need between $105,000 to $120,000 as a starting point in retirement.
Roughly 7% to 9% of American households have $500,000 or more in retirement savings, though figures vary slightly by source, with data from late 2025 suggesting around 7.2% and older 2022 data indicating about 9%, showing it's a significant milestone achieved by less than one in ten families, despite higher averages driven by wealthy individuals.
The amount of super you need will also depend on what you're earning from full or part-time work, the Age Pension, and other investments. To enjoy a comfortable retirement, AFSA suggests that single people will need $595,000 in super savings at age 67, and couples will need $690,000.
A good retirement nest egg aims to replace 80% of your pre-retirement income, often meaning you need 10-12 times your final salary saved by retirement (around age 67), but the exact amount varies greatly by lifestyle, expected expenses (especially healthcare), and retirement age, with rules like saving 1x salary by 30, 3x by 40, 6x by 50, 8x by 60, and 10x by 67 being helpful benchmarks.
The top ten financial mistakes most people make after retirement are:
It's better to take Social Security at 67 (Full Retirement Age - FRA) for a permanently higher monthly payment, but taking it at 62 (earliest age) can make sense if you need money sooner due to poor health, a shorter life expectancy, or a spouse's higher earnings, though it reduces your monthly benefit significantly (up to 30%). The best time depends on personal financial needs, health, and life expectancy; waiting past FRA up to age 70 further increases benefits, while claiming early provides income sooner but at a permanent discount.
Only a small percentage of Americans retire with $1 million or more in retirement savings, with figures from the Federal Reserve and Employee Benefit Research Institute (EBRI) showing around 3.2% of retirees hitting that mark, though some sources cite slightly lower numbers for all Americans (around 2.5%) or higher estimates for households nearing retirement (over 10% of older households have $1M+ net worth, not just retirement funds). The reality is most retirees have significantly less, with the median for ages 65-74 being around $200,000-$609,000 in retirement accounts.
Most people retire with significantly less than the $1 million+ many think they need, with median savings for those nearing retirement (ages 65-74) around $200,000, while averages are higher due to large balances held by a few, meaning many individuals fall short, with some studies showing 25% of non-retirees having zero savings.
4 common 401(k) mistakes to avoid
One common approach is to take required minimum distributions (RMDs) starting at age 73, which helps you avoid penalties and ensures a steady income stream. Another option is to roll over your 401(k) into an IRA, offering more flexibility and potentially better investment choices.
Ten simple ways to grow your super
Eliminating a big debt early on could save you thousands of dollars in interest, freeing up money that could be added to your retirement savings and start gaining compound interest instead. Another thing to consider is that keeping up with large debts becomes more difficult in retirement.