Knowing whether you have enough superannuation can be difficult.
Retirement could last for decades, living costs will change, and everyone's idea of a comfortable lifestyle is different.
Still, there are some useful benchmarks that can give Australians an idea of what they may want to aim for.
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What does a comfortable retirement cost?
The Association of Superannuation Funds of Australia (ASFA) publishes its Retirement Standard to estimate the spending required for different retirement lifestyles.
For Australians aged 65 to 84, ASFA currently estimates that a single person needs around $55,923 a year for a comfortable retirement. A couple needs approximately $78,566 annually.
That comfortable budget allows for things such as private health insurance, regular leisure activities, occasional restaurant meals, maintaining a reasonable car, home repairs, and some travel.
The figures are a lot lower for what ASFA describes as a modest retirement.
A single homeowner needs an estimated $36,434 annually, while a couple needs $52,473. Private renters face a higher hurdle, with estimated annual spending of $51,164 for a single person and $69,002 for a couple.
That difference shows why the amount of superannuation someone needs can vary so much depending on their circumstances.
So, how much superannuation is enough?
ASFA has helpfully provided its estimate for the superannuation balances required at age 67 to fund those lifestyles.
For a comfortable retirement, it estimates that a single person needs around $630,000, while a couple needs approximately $730,000 between them.
It is important to point out that this does not assume retirees will live entirely from investment income while preserving their original balance forever.
ASFA's calculations assume retirees draw down their capital over retirement and receive a part Age Pension.
For a modest retirement, ASFA estimates required balances of $110,000 for a single homeowner and $120,000 for a couple.
Private renters need more. ASFA puts the required balance at around $340,000 for a single renter and $385,000 for a couple.
I would treat these as a starting point
I do not think there is one superannuation number that every Australian should aim for.
Someone who owns their home outright, has relatively low expenses, and qualifies for the Age Pension could need considerably less than someone paying rent or wanting to travel regularly.
Retirement age also makes a difference. The ASFA balance estimates are based on retiring at 67, so someone hoping to finish work much earlier may need to fund more years before or during retirement.
I would also want some room for unexpected expenses rather than planning around the minimum amount required to make the numbers work.
Foolish takeaway
ASFA's latest benchmark suggests a single Australian needs around $630,000 in superannuation at age 67 for a comfortable retirement, while a couple needs around $730,000.
That gives investors something tangible to work towards, but I would not treat it as a universal target.
The amount I would want would ultimately depend on when I planned to retire, whether I owned my home, the lifestyle I wanted, and how much flexibility I wanted once regular employment income stopped.
