Making your super last through retirement

One of the biggest concerns for many people approaching or moving into retirement is whether they will have enough money to keep them going after they stop working.

Feeding into this fear of running out – which is sometimes referred to as FORO – are factors such as rising living costs and the ongoing increases in average life expectancy rates in Australia for both men and women.

Which raises a perennial question. How much money is enough? The answer ultimately comes down to how big a retirement savings balance you’ve accrued, the ongoing capital growth and income you generate from that balance over time and, most importantly, how much you need to spend and what you choose to spend.

How much money we spend in retirement is basically a personal choice.

A useful spending guide

The Association of Superannuation Funds of Australia (ASFA) publishes its Retirement Standard on a quarterly basis that estimates how much singles and couples are likely to need to live either a “comfortable” or “modest” lifestyle in retirement.

ASFA’s “comfortable retirement” definition assumes retirees (singles and couples) are homeowners and have enough income to support things such as top-level private health insurance and medical expenses; fast and reliable NBN for broadband; a reasonable car; regular leisure activities; occasional restaurant or home-delivery meals; and the capacity for one annual domestic trip and an overseas trip every seven years.

Its “modest retirement” definition covers both homeowners and renters and factors in basic private health insurance; an older car; infrequent leisure activities; limited meals out at inexpensive restaurants and infrequent take-away meals; and an annual domestic trip or a few short breaks.

The ASFA figures are just a guide, but they do provide a useful benchmark when planning retirement budget and withdrawal strategies.

Below are ASFA’s estimates from the March quarter of 2026 showing its calculations for the annual net incomes needed to support comfortable and modest lifestyles. These dollar amounts could potentially be funded through a combination of drawdowns from accumulated retirement savings, investment income, and the government’s Age Pension for those eligible to receive partial or full payments.

Household type	Comfortable lifestyle (homeowner) per year	Modest lifestyle (homeowner) per year	Modest lifestyle (renters) per year
Single	$55,923	$36,434	$51,164
Couple	$78,566	$52,473	$69,002

As at 31 March, 2026

Source: ASFA

Changes in spending habits

Retirement spending patterns typically evolve over time. Retirees tend to spend more in the early years, when they are more active and likely to travel, dine out and pursue hobbies. As people age, spending generally declines, particularly on discretionary items.

Everyday costs such as groceries and utilities remain, but lifestyle spending often reduces. This natural tapering can help your super last longer than you might expect, provided your withdrawal strategy reflects these changing needs.

ASFA’s benchmarks are designed to help people assess whether their current withdrawal rate aligns with their desired lifestyle. For example, if your spending is significantly higher than these figures, you may need to adjust your budget or investment strategy to ensure long term sustainability.

Conversely, if your spending is lower, your super may last longer than expected, giving you greater flexibility.

Managing your withdrawals

A sustainable retirement income strategy begins with managing how much you withdraw at a time.

Regular withdrawals need to cover everyday living expenses, but drawing too much too early can significantly reduce how long your savings last.

Many retirees adopt a flexible withdrawal approach, adjusting their income based on market conditions and personal needs. This helps preserve capital during periods of lower investment returns and allows for higher withdrawals when markets perform strongly.

Keep in mind that the Federal Government mandates minimum annual drawdown rates on your accrued retirement savings based on your age once you’ve rolled them over into an account-based pension.

The starting minimum drawdown rate is 4% of your balance each financial year up until you turn 65, with the required drawdown rate then increasing by 1-2% per annum as you move into higher age bands.

Controlling your investments

Your investment strategy plays a crucial role in helping to generate the retirement income you need.

For example, conservative investments like cash and fixed interest can provide stability and income. However, these types of investments may not meet your total income needs over time. Their average annual returns may also not keep pace with inflation over the long term.

Maintaining some growth exposure can help offset rising costs and support your ability to fund rising later life expenses such as healthcare and aged care.

Therefore, having a diversified investment approach that incorporates income producing investments such as cash and fixed interest and growth investments such as shares can help your retirement savings continue to grow and still deliver regular income.

legalsuper’s account-based pension provides a broad range of 10 investment options to retirees and the ability to receive regular, flexible and tax-effective income payments designed to suit your needs.

Making your savings last through retirement requires thoughtful planning, disciplined withdrawals and an investment strategy that balances income with growth.

If you’d like help reviewing your retirement income strategy or understanding how long your super may last, consider speaking with a licensed financial adviser who can provide personalised guidance.

You can also contact a member of the legalsuper national Client Services team.

Send us a message, book an appointment, or call us on 1800 060 312.