A Vanguard survey shows retired Australian couples spent an average of $55,000 on living expenses over the past 12 months.
Vanguard conducted a nationally representative survey of more than 1,800 Australians for its 2025 How Australia Retires report.
The survey found retirees are spending less than the estimated amount for a comfortable retirement in the nation's Retirement Standard.
Compiled by the Association of Superannuation Funds of Australia (ASFA) and updated quarterly for inflation, the Standard is Australia's benchmark retirement budgeting resource.
On latest estimates, a comfortable retirement costs $75,319 per annum for couples and $53,289 for singles.
This assumes mortgage-free home ownership, a part-pension, and a 6% average annual return on investments like superannuation.
ASFA defines a comfortable lifestyle as enough money to cover the basics plus top level private health insurance, various exercise and leisure activities, occasional restaurant meals, a domestic holiday every year, and an international trip every seven years.
A modest retirement costs $49,992 for couples and $34,522 for singles who own their own homes.
ASFA defines a modest retirement as having basic private health insurance, a cheaper car, basic internet and mobile phone, infrequent exercise and leisure activities, few restaurant meals, and one domestic holiday per annum.
Retirement is more expensive for renters, and renting is an increasingly common situation in retirement today.
ASFA says a modest retirement for renters costs $66,269 per annum for couples and $49,044 for singles.
The Vanguard survey also showed that younger people expect their retirement to cost much more than all of these estimates.
Australians under the age of 45 expect to need a minimum annual household income of $100,000 to fund their retirement.
Vanguard said this could reflect lower levels of planning, rising living costs, and the increased likelihood of retiring with a mortgage or while renting.
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How are Australians funding their retirement?
A report from the Australian Bureau of Statistics (ABS) shows the Age Pension remains the main source of income for most retirees.
The full pension, including both supplements, is $1,178.70 per fortnight for singles and $888.50 per partner for couples.
However, the ABS data also shows an increasing reliance on superannuation as the main source of income.
The ABS said:
Between 2014-15 and 2024-25, the proportion of retired people with superannuation as their main source of income has increased from 20% to 28%.
This trend is set to continue, with ASFA estimating that the lift in the Superannuation Guarantee to 12% would fully fund the retirement of today's average 30-year-old worker.
ASFA said:
With the 12% super guarantee in place, a 30-year-old with a super balance of $30,000, earning the median wage of $75,000 until retiring at age 67 should accumulate $610,000 in super, well above the $595,000 the latest ASFA Retirement Standard estimates is needed to fund a comfortable retirement for single people who own their own home.
How much superannuation do you need by retirement?
ASFA says couples need $690,000 and singles need $595,000 in superannuation savings by age 67 to fund a comfortable lifestyle.
Both couples and singles only need $100,000 in superannuation to fund a modest lifestyle.
ASFA says the average superannuation balance of workers aged 65-69 years today is $428,533 for men and $379,483 for women.
