How much do you really need for retirement? A smarter solution to fund your ideal lifestyle
Retirement planning is a puzzle that leaves many scratching their heads, wondering, “How much is enough?” Ask Google that question, and out spews a hundred different opinions, many written to avoid offence. Even the experts don’t always agree. From ambitious pre-retirement targets to debates about how our spending patterns change as we age, there are as many plans for retirement as people providing them.
One thing is clear, though: a well-structured investment strategy that includes a low volatility, higher-income, private credit income fund, may ease the burden and enhance financial security at every stage of retirement.
The numbers game: what’s “enough” for retirement?
The Association of Superannuation Funds of Australia (ASFA) annually sets a widely cited “comfortable” retirement standard, suggesting a home-owning couple needs $690,000 by age 67 to enjoy a “comfortable” lifestyle.
Yet, a 2025 Colonial First State survey reveals the average Australian believes $823,000 is necessary. And weirdly, that number is down from $1.6 million in 2024.
Meanwhile, both above balances are irrelevant to about 80,000 Australians, who the Treasury says have over $3 million in superannuation.
Despite this, some critics argue that ASFA’s benchmark is too lofty because only 30 per cent of couples hit or exceed that balance.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
He is also author of best-selling investment guide-book for the stock market, Value.able – how to value the best stocks and buy them for less than they are worth.
Roger appears regularly on television and radio, and in the press, including ABC radio and TV, The Australian and Ausbiz. View upcoming media appearances.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
Doug Hocken
:
Hello,
Really appreciate your articles as I have found them to be balanced and informative. Out of all my reading I think your group was an early commenter about private credit which everyone has now jump on the band wagon with. However( and there is always a however lol). I find my reading of commentary is all now pushing the scaremongering line of volatility and changing investment strategies to safer ground and more knowledgeable investment funds. As a small superfund investor my strategy is currently to be vigilant with getting up to date information on my investments , ride the roller coaster and hold the line. You may miss small opportunities but is it really worth it. I am still a long term holder despite my age.
Thanks
Doug Hocken