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Do You Really Need $1 Million To Retire?

Do you really need $1 million to retire?

How much money do you really need to retire comfortably in Australia? It’s a question that most people ask themselves at some stage in their life.

You may have heard of the golden target of 1 million dollars – which can be a little intimidating.

It certainly sounds like a lot of money and that it should last your lifetime.

But the truth is the real number you will need isn’t quite so straightforward. It’s extremely personal.

For some people, $1 million might be excessive and for others, it may not be anywhere near enough.

Another thing to remember is that even if $1 million is your target number, that doesn’t mean you have to have $1 million in your bank account (nor should it mean that).

Don’t forget about your hard-working superannuation and consider building an investment portfolio to create income streams for when you retire, and you can no longer rely on your regular working salary.

There are several opportunities out there to help you transition to retirement – what’s important is that you make the most of them and use them in a way that will benefit you and not have negative tax implications.

While your own retirement budget is individual, it doesn’t hurt to be guided by approximate numbers when beginning your retirement plan.

As a rough guide, here is the amount that the Association of Superannuation Funds of Australia (ASFA) estimates you will need based on your desired lifestyle.

You can apply the table below to estimate how much you will need for your own retirement and whether you really will need $1 million.


Modest lifestyleComfortable lifestyle
Single$27,987 per year$43,901 per year
Couple$40,440 a year$62,083 per year


Based on the table above, we can calculate approximately the dollar amount you will require to retire.
  • If you and your partner were seeking a comfortable lifestyle in retirement - and were to retire at age 60 and live until age 90 - together you would need approximately $1.8 million ($900,000 per person). *
  • However, if you and your partner retired at age 65, lived until 90, and were happy with a modest lifestyle, you would only require just over $1 million to support both of you together. *


The amount you need for retirement is completely personal.

It’s unproductive to compare yourself to others when their personal situation may be so different to your own.

It’s also unwise to aim for $1 million to retire when in reality, that could be hundreds of thousands of dollars off the amount you truly need.

What is important to do is take the time to forecast the real number you will need and plan to reach your target.

A financial planner can help you accurately estimate the amount you will need and develop a tailored step-by-step plan to ensure you are on track to retire on your terms.

Your retirement is exactly that: yours.


If you want to know if your retirement savings are on track, book an initial appointment with CCFPG. We have an incredible team of passionate and experienced financial advisers here on the Central Coast in NSW.

What’s more is we now have access to incredible, market leading technology, Wealth Central. This innovative technology allows us to model all your financial strategy options and cashflow projections in real time.

With Wealth Central, you can truly visualise how your financial future will look and simultaneously, see your financial plan working hard for you so that you can live your best life in retirement.

To utilise Wealth Central and start planning for your dream retirement, book a meeting with our dedicated and experienced financial advisers at one of our offices located in Central Coast – Erina (CCFPG), Newcastle – The Junction (NFPG) and  Sydney CBD (SWA).


* Assuming funds are not invested and are returning 0% p.a

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