How much super do you need to retire in Australia?

How much super do I actually need before I stop working? It's the question nearly every Australian asks at some point.

The Association of Superannuation Funds of Australia (ASFA) has been crunching the numbers for two decades, and its Retirement Standard report is the benchmark most people use to get a clear picture of what retirement really costs.

The Retirement Standard sets out two lifestyles - comfortable and modest - and estimates the super balance needed to achieve each.

Importantly, the calculations assume retirees draw down their super during their lifetime and receive a part Age Pension along the way.

ASFA CEO Mary Delahunty says the Retirement Standard can be an important budgeting framework to help retirees and pre-retirees make decisions about their life.

"It's a helpful tool - it's not a must-do or a have-to-reach - but it can help provide information where information can sometimes be lacking."

Comfortable vs modest

Here comes the magic number: to retire at 67 with a comfortable lifestyle, you'll need about $690,000 in super as a couple or $595,000 as a single.

A comfortable retirement covers things like holidays, private health cover, dining out, and replacing household items when needed.

By contrast, a modest retirement requires far less - just $100,000 in super for singles or couples.

This lifestyle covers the basics but offers only occasional leisure activities.

The difference is that the Retirement Standard assumes retirees own their home, which affects the amount of pension they receive.

If you're still paying rent in retirement, the target for a modest lifestyle climbs sharply - $385,000 for couples and $340,000 for singles.

"Renting takes up quite a lot of the budget in retirement," says Delahunty.

"As a nation, we need to be more agile in solving the housing crisis, as it will hurt more and more retirees to be in that private rental market when entering retirement."

What's changed this quarter

Every quarter, ASFA updates its figures to reflect what retirees are spending.

This time, the big change is the inclusion of digital essentials - things like phones, NBN plans and streaming subscriptions.

At the comfortable level, these now add up to $58 a week for couples, and $45 a week at the modest level.

"The stereotype of the digitally challenged senior is outdated. Today's retirees are as connected as anyone, and this is reflected in their household budgets," says Delahunty.

With cost-of-living front of mind for many retirees, other costs are also shifting:

• Private health insurance rose 3.7% - the biggest quarterly jump since 2018
• Electricity prices climbed another 8.1% after a 16.3% rise last quarter
• Fruit and vegetables were up 4.3%
• Fuel prices offered a little relief, falling 3.4% thanks to lower global oil prices

"We continue to see steep cost-of-living increases for retirees. Superannuation matters more than ever in delivering the dignified retirement Australians deserve," Delahunty says.

So, you don't meet the benchmark

If you're looking at these figures and feeling like your super balance is miles off target, you're not alone.

According to the Australian Taxation Office (ATO), the average super balance grew 5% to $172,000 at the end of the 2022-23 financial year. But averages don't tell the whole story:

• Women had an average balance of $154,641
• Men had an average balance of $192,119

The median superannuation balances were far lower - $54,349 for women and $68,568 for men. That means many Australians are sitting well below ASFA's benchmarks.

The good news is you still have options. Financial advisers, and even your own super fund, can help you understand what's realistic for your circumstances and what steps you can take to close the gap.

"The reality is that everyone's retirement is different, and it's important to turn and face into it... to engage with the help that is available and talk through exactly how you can make the most of the money you have, regardless of the balance," says Delahunty.

"It's scary but it's just so important to not be hesitant or put things off."

For a step-by-step plan, check out Money's guide to mapping out your super from 10 years out from retirement: Your ultimate timeline to prepare for retirement.

And if you want a deeper dive into making the most of your super, grab a copy of Money's Good Super Guide.

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