Article Summary: 

Planning your retirement in Australia is not just about choosing where to live. It is about making sure your finances can support your lifestyle long term. This guide explains how much you need to retire, how location impacts your financial position, and how to choose the right accountant or adviser to help you retire with confidence. 

This article provides general information only and does not consider your objectives, financial situation or needs. You should consider whether the information is appropriate to your circumstances and seek personal advice from a licensed financial adviser. 

Most Australians Choose Where to Retire Before They Know If They Can Afford It 

If you have already explored our guide on the Top 10 Retirement Destinations in Australia, you are not alone. It is one of the most searched retirement topics in Australia. 

However, this is where many people get it wrong. 

Most Australians decide where they want to retire before they understand whether their finances can support that decision. 

That is where costly mistakes begin. 

Choosing where to retire is simple. Knowing if you can afford to retire there requires planning. 

How Much Do You Need to Retire in Australia? 

How much super do I need to retire comfortably? 

According to the ASFA Retirement Standard, the estimated lump sum needed at retirement to support a comfortable lifestyle is: 

  • Single person: approximately $630,000  
  • Couple: approximately $730,000  

These figures assume the retiree receives a partial Age Pension.  

ASFA’s latest annual spending benchmarks estimate that a comfortable retirement costs approximately: 

  • Single person: $54,840 per year  
  • Couple: $77,375 per year  

These figures are based on retirees aged 65 to 84 who own their home.  

This comfortable retirement lifestyle may include: 

  • Regular leisure activities  
  • Dining out  
  • Domestic travel  
  • Private health insurance  
  • Reliable transport  
  • Home maintenance  
  • Occasional overseas travel  

A modest lifestyle requires less, but the exact figure depends on your personal situation. 

Key factors that influence your retirement number 

  • Where you live  
  • Whether you own your home or rent  
  • Your lifestyle expectations  
  • Your retirement income strategy  
  • Your superannuation balance  
  • Your Age Pension eligibility  
  • Your asset structure  

Are You Actually on Track for Retirement? 

This is the question most people avoid. 

At Cosca, what we often see is a gap between what people think they need and what they actually need to sustain their lifestyle. 

Common patterns include: 

  • Super balances that are lower than expected  
  • Underestimating how long retirement will last  
  • Assuming investment returns will cover the gap  
  • Not factoring in rising living and healthcare costs  
  • Confusing super access age with Age Pension age  

In Australia, the Age Pension age is currently 67 years or older. However, this is different from when you may be able to access your super. The ATO explains that you can generally access your super when you reach your preservation age and retire, or when you turn 65.  

Many Australians are not far off. They are just not clear on what adjustments to make. 

Clarity comes from understanding what actually drives a successful retirement plan in Australia.

At Cosca, we often see people focus on the wrong lever — trying to maximise investment returns to close the gap.

However, effective retirement planning is not about chasing the highest return. It is about achieving the right return for your situation, while managing risk and protecting your long-term income.

This is where a well-structured superannuation and retirement income strategy becomes critical.

Chasing higher returns typically means taking on more investment risk, which can create greater uncertainty, particularly as you approach retirement.

Instead, the focus should shift to what you can control.

This includes:

  • Your retirement expenses and cost of living
  • How your superannuation generates income
  • Tax efficiency across your investments
  • Your asset allocation and risk level

In practice, your expenses will often have a greater impact on your retirement outcome than investment returns.

Even small adjustments can make a meaningful difference.

  • A 1% increase in returns may have a limited impact
  • Reducing annual expenses can significantly extend how long your super lasts

According to ASIC’s Moneysmart, managing spending and drawing a sustainable income from super are key to making your retirement savings last.

The goal is alignment.

When your lifestyle, superannuation, investment strategy and retirement income are working together, you are no longer relying on assumptions — you are making informed, confident decisions.

At Cosca, this is how we define retirement planning: focusing on the factors you can control, targeting the right return, and building a strategy that supports your lifestyle over the long term.

How Location Impacts Your Retirement Finances 

Where you choose to retire affects more than lifestyle. It directly impacts your long term financial position. 

If you are considering locations from our retirement destinations guide, it is important to evaluate the financial side as well. 

Key considerations 

Property and downsizing 
  • Will you release equity by downsizing?  
  • Will your housing costs increase or decrease?  
  • Will sale proceeds affect your Age Pension eligibility?  
  • Could a downsizer contribution into super be suitable?  

Downsizing can free up capital, but it should be planned carefully. Sale proceeds may be assessed under Centrelink rules, and downsizer contributions can affect your total super balance and future superannuation position. 

Cost of living 
  • Regional areas can be more affordable  
  • Popular coastal locations often have higher living costs  
  • Insurance, transport, utilities and healthcare costs may vary by location  
Healthcare access 
  • Access to medical services becomes more important over time  
  • Healthcare costs can vary significantly by location  
  • Private health insurance can be a meaningful part of retirement spending  
Tax and pension impacts 
  • Downsizing can affect Age Pension eligibility  
  • Investment income needs to be structured correctly  
  • Superannuation, pension payments and assets need to be considered together  

At Cosca, we regularly see people make location decisions based on lifestyle alone, without fully understanding the financial impact. This is where the right advice can make a significant difference. 

Thinking About Retirement in the Next 5 to 10 Years? 

If you are within this window, the decisions you make now will have the biggest impact on your retirement outcome. 

At Cosca, we help Australians: 

  • Understand how much they need to retire  
  • Structure superannuation and investments for income  
  • Plan downsizing and reduce unnecessary tax  
  • Understand the difference between super access and Age Pension eligibility  
  • Make informed decisions before they stop working  
Start with an Insight Super Review 

This gives you a clear understanding of: 

  • How long your super is likely to last  
  • Your projected retirement income  
  • Any gaps you need to address  
  • Whether your current strategy supports your retirement goals  

It is a practical starting point for making informed decisions about your future. 

Common Retirement Planning Mistakes 

1. No income strategy 

Superannuation is not just a balance. It needs to generate reliable income. 

2. Overestimating retirement savings 

Many people assume their super will stretch further than it realistically will. 

3. Ignoring tax in retirement 

Tax still plays a role in how your income is structured. 

4. Downsizing without planning 

Selling your home can impact: 

  • Age Pension eligibility  
  • Tax outcomes  
  • Long term financial security  
  • Super contribution opportunities and limits  
5. Waiting too long to get advice 

The earlier you plan, the more options you have. 

Do You Need an Accountant or Financial Adviser for Retirement Planning? 

Super doesn’t always have to do all the heavy lifting. Many retirees rely on a Do I need an accountant for retirement planning in Australia? 

Most people benefit from both an accountant and a financial adviser. 

Roles explained 

Accountant: 

  • Tax planning  
  • Asset structuring  
  • Compliance  
  • Business or investment entity considerations  

Financial adviser: 

  • Investment strategy  
  • Superannuation planning  
  • Retirement income planning  
  • Age Pension considerations  
  • Transition to retirement strategies  
The best outcome 

An integrated strategy where tax, superannuation, investments and retirement income work together. 

This is the approach we take at Cosca, ensuring all parts of your financial position are aligned. 

When Should You Speak to a Retirement Adviser? 

You do not need to wait until retirement to get advice. 

It is worth speaking to an adviser if you are: 

  • Within 10 years of retirement  
  • Considering downsizing your home  
  • Unsure if your super is enough  
  • Wanting to reduce tax and improve income efficiency  
  • Looking to transition from work to retirement gradually  
  • Unsure how the Age Pension may apply to you  
  • Deciding whether to retire at 60, 65, 67 or later  

The earlier you get clarity, the more options you have to improve your position. 

How to Choose the Right Retirement Adviser in Australia 

What should I look for in a retirement adviser? 
  • Transparent fee structure  
  • Personalised advice  
  • Experience with superannuation and tax strategies  
  • Long term planning approach  
  • Clear explanation of risks, fees and strategy  
  • Appropriate licensing and professional registration  

Before choosing a financial adviser, check that they are listed on the Financial Advisers Register. ASIC confirms this register is managed by ASIC and published on Moneysmart.  

Be cautious of advice that focuses only on products rather than your overall strategy. 

FAQs

Can I retire at 60 in Australia? 

Yes, but it depends on your super balance, preservation age, work status, lifestyle expectations and eligibility for government support. You may be able to access your super before Age Pension age if you meet a condition of release, but the Age Pension age is currently 67.  

What is a comfortable retirement income in Australia? 

According to ASFA’s latest Retirement Standard, a comfortable retirement costs approximately $54,840 per year for a single person and $77,375 per year for a couple, assuming the retiree owns their home.  

How much super do I need to retire comfortably in Australia? 

ASFA estimates that a comfortable retirement requires approximately $630,000 for a single person and $730,000 for a couple, assuming a partial Age Pension.  

Is downsizing before retirement a good idea? 

Downsizing can free up capital and reduce expenses, but it may affect tax, Age Pension eligibility, super contribution opportunities and long term financial security. It is important to get advice before selling or contributing proceeds into super. 

What happens if I run out of super? 

You may need to rely on the Age Pension or other income sources. Planning ahead helps reduce this risk by giving you time to adjust your spending, contributions, investment strategy or retirement timeline. 

What does a retirement adviser do? 

A retirement adviser helps structure your finances, investments, superannuation and income streams to support your lifestyle long term. They can also help you understand your options before and during retirement. 

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