Retirement planning often starts with a number. How much do I need? Have I saved enough? Those are fair questions, but they are hard to answer in isolation. A better starting point is the life you want to live, and then working out what it will take to fund it.
At our recent retirement planning seminar in Parkes, we worked through the key pieces of that puzzle: what retirement costs, how super works, when you can access it, how the Age Pension fits in, and how to protect what you have built. Here is a summary of the main points.
Start with the life, then build the numbers
Before looking at balances or caps, it helps to picture what retirement will look like for you. Where will you live? What will you do with your time? Will you keep working part-time, travel, volunteer or spend more time with the grandchildren? What are your partner’s plans, and how might your health shape the years ahead?
The answers drive everything else: how much income you will need, where it will come from, how long it needs to last, and what larger costs sit on the horizon.
What does retirement actually cost?
The ASFA Retirement Standard is a useful benchmark. For homeowners aged 65 to 84, the March quarter 2026 figures are:
- Modest lifestyle: $36,434 a year for a single, $52,473 for a couple
- Comfortable lifestyle: $55,923 a year for a single, $78,566 for a couple
Source: ASFA Retirement Standard, March Quarter 2026
These figures assume you own your home and are in relatively good health, so your own costs may be quite different. The most reliable figure is the one you build yourself. A simple way to do this is to map your spending in three layers:
- Every year: housing, food, utilities, transport, insurance and health
- Some years: travel, new vehicles, renovations and helping family
- Unexpected: medical costs, aged care, home repairs and market downturns
Spending also tends to change across retirement, with the early, active years often costing more than later on.
Making the most of super before you retire
Super remains one of the most tax-effective ways to save for retirement. The following contribution caps and superannuation thresholds are current for the 2026/27 financial year and may change in future years.
- Super Guarantee: 12%
- Concessional contributions cap: $32,500 (employer contributions, salary sacrifice and personal deductible contributions all count towards it)
- Non-concessional contributions cap: $130,000, with up to $390,000 available under the three-year bring-forward rule if your total super balance was below $1.84 million at 30 June 2026 and you are under 75
- General transfer balance cap: $2.1 million
If your total super balance was below $500,000 at the previous 30 June, you may be able to use unused concessional cap amounts from up to five previous financial years. This can suit people who had leaner years earlier, whether through a career break, tough seasons or reinvesting in a business.
If you are 55 or older and selling a home you have owned for at least 10 years, a downsizer contribution may allow you to add up to $300,000 each to super, separate from the usual caps. It is worth checking how this affects your Age Pension position and estate plans first.
When can you access your super?
For anyone born after 1 July 1964, preservation age is 60. Reaching it does not automatically give you access, as you also need to meet a condition of release, such as retiring after preservation age, ceasing an employment arrangement after 60, or reaching 65.
If you have reached preservation age and are still working, a transition to retirement income stream lets you draw a limited income from super. This can help you cut back your hours while maintaining your lifestyle, or boost your super savings. From age 60, income and lump sums from a taxed super fund are generally tax-free.
Turning super into a retirement income
Once you meet a full condition of release, you can move your super into the retirement phase and start an account-based income stream. Investment earnings supporting that income stream are generally tax-free, you can receive regular payments with the option of lump sums, and any remaining balance can pass to your beneficiaries or estate.
The amount you can transfer into the retirement phase is limited by the transfer balance cap, currently $2.1 million. Each year you must also draw at least a minimum amount, starting at 4% of your balance if you are under 65 and rising with age to 14% from age 95.
Where the Age Pension fits
For many retirees, the Age Pension, full or part, forms a reliable part of their income. Age Pension age is 67 for anyone born on or after 1 January 1957. As at 20 March 2026, the maximum rates are $1,200.90 a fortnight for singles and $1,810.40 a fortnight for couples combined.
Your entitlement is worked out under both an assets test and an income test, and whichever gives the lower rate applies. Part pensions extend further up the asset scale than many people expect. For example, a single homeowner can hold assets of up to $733,500 before the part pension cuts out. This is why decisions you make in the lead-up to retirement, such as how and where your assets are held, can affect your entitlement.
It is also worth knowing about concession cards. The Commonwealth Seniors Health Care Card, for example, can provide cheaper medicines for people of Age Pension age who are not eligible for the pension, subject to an income test.
The four risks every retiree should plan for
Investing in retirement is less about chasing returns and more about balancing four risks:
- Inflation: living costs can rise faster than your income. A loaf of bread cost $0.21 in 1970 and around $3.60 today.
- Sequencing: poor returns early in retirement can have an outsized effect while you are drawing an income.
- Longevity: retirement may last longer than you expect, so income needs to be sustainable.
- Liquidity: you need enough accessible funds for everyday spending and the unexpected.
One practical approach is to match your investments to your spending plan: a cash reserve for near-term spending and emergencies, defensive assets for the medium term, and growth assets for spending further down the track.
Don’t forget estate planning
Many people are surprised to learn that super is not automatically covered by their Will. Your fund trustee pays your death benefit under super law and the fund’s rules. A valid binding death benefit nomination directs the trustee, while a non-binding nomination only guides them. Some nominations also lapse after a set period, so it pays to review them regularly. A reversionary pension may allow an eligible beneficiary to continue receiving your income stream automatically.
Tax on death benefits can differ depending on who receives them and how, so your nominations, income streams and Will should work together.
You should obtain legal advice when preparing or updating your Will and estate planning arrangements.
Planning ahead for aged care
Aged care is one of the larger costs many families face later in life, and the fee arrangements changed from 1 November 2025. Accommodation can be paid as a lump sum, an ongoing daily payment or a combination of both, with ongoing care fees on top. Understanding these costs early gives you more options when the time comes.
How financial advice can help
Retirement planning brings together super, tax, Centrelink, investments, estate planning and aged care. Getting the pieces working together can make a real difference to your income and peace of mind. A financial adviser can help you understand where you stand today, build strategies to reach your goals and make the complex simple.
In September, we held a retirement planning seminar in Parkes that covered the topics in this article in more detail. If you weren’t able to attend, you can view the full presentation here.
If you would like to talk about your own retirement plans, contact the MBC Wealth team to arrange a conversation with Greg.
Frequently asked questions
How much do I need to retire comfortably?
There is no single answer. ASFA’s benchmarks are a helpful starting point, but your spending, other assets, Age Pension entitlement, investment returns and how long retirement lasts all change the picture. Building your own budget and cash-flow plan will give you a far more reliable figure.
Can I access my super at 60?
Reaching 60 means you have reached preservation age if you were born after 1 July 1964, but you also need to meet a condition of release, such as retiring. If you are still working, you can generally start a transition to retirement income stream. Full access applies once you retire after preservation age or reach 65.
Can I receive the Age Pension if I have super?
Yes, many people do. Your super is generally counted under the assets and income tests once you reach Age Pension age, and the test that gives the lower rate applies. Depending on your circumstances, you may be eligible for a part pension alongside income from your super.
General information only. This article does not constitute personal financial advice and has not been prepared with your individual objectives, financial situation, or needs in mind. Superannuation and taxation rules change and contribution caps are indexed, so confirm current figures and seek personal advice from a licensed financial adviser before making any decisions. MBC Wealth is an authorised representative of Count Financial Limited, AFSL 227232.
