Retirement planning in Australia isn’t one-size-fits-all. Professional retirement advice can help tailor your retirement strategy to your household, lifestyle goals and expected income needs. Whether you’re a single person mapping out your future or a couple working through the numbers together, the rules, costs, and strategies you need differ in ways that can mean tens of thousands of dollars over a retirement spanning 20 or 30 years. Here’s what matters.
Quick overview: couples vs singles at a glance
Australian retirees face distinct differences in expenses between couples and singles, and those differences start with how the system itself is designed. The age pension is calculated differently for singles and couples based on individual versus combined assessments. Couples are assessed as a household, with combined assets and income tested against higher thresholds. Singles are assessed alone, facing lower thresholds but receiving a higher pension rate per person. These structural differences drive very different approaches to retirement savings, retirement income, and the retirement age you can realistically target. Building a structured retirement plan early makes these differences much easier to manage.
Couples generally have more financial flexibility due to shared income and assets. They benefit from shared housing, utility costs, transport, and subscriptions, which means their combined yearly budget is well below what two singles would spend separately. For a comfortable retirement, the asfa retirement standard puts a couple’s annual need at $78,566, compared to $55,923 for a single person. On the superannuation side, ASFA estimates a couple needs about $730,000 in combined super balance, while a single person needs around $630,000. Singles face higher costs because they cannot share housing and utilities, yet their per-person pension rate is more generous at lower asset levels.
Understanding what a comfortable retirement actually costs is one of the most important parts of retirement planning. Creating sustainable retirement income is often more important than simply accumulating a large super balance.
Where you live and how you live also shifts the equation. A single retiree in Sydney will face steeper expenses than a couple in regional Queensland, even with the same savings. The right plan depends on your personal situation, not just your relationship status.
Understanding the ASFA Retirement Standard for singles and couples
The ASFA Retirement Standard is published by the Association of Superannuation Funds of Australia (sometimes referenced as funds of australia asfa) and updated every march quarter to reflect cost-of-living pressures. It’s the most widely cited benchmark for what Australians actually need to spend in retirement.
ASFA sets separate budgets for singles and couples, and distinguishes between a modest retirement and a comfortable retirement, covering Australians aged 65–84 and 85+. The retirement standard assumes retirees own their home outright, are in reasonably good health, and plan to live an active lifestyle. It incorporates everyday costs like groceries, utility bills, and transport, alongside lifestyle items such as an annual domestic trip, leisure activities, a modest internet data allowance, and basic private health insurance.
Key benchmarks for homeowners include:
A comfortable retirement requires $55,923 per year for singles and $78,566 per year for couples.
A modest lifestyle requires $36,434 per year for singles and $52,473 per year for couples.
These budgets assume that couples benefit from economies of scale in many expenses. The cost of living for singles is approximately 70–75% of a couple’s lifestyle expenses, not 50%, because housing, broadband, and many fixed costs don’t halve when one person lives alone. This gap directly affects how much superannuation you need to retire.
The following sections translate these benchmarks into real planning implications, including how much super you may need by retirement age 67.
How much superannuation do singles vs couples need to retire at 67?
Many Australians also wonder whether they’re actually ready to retire based on their current savings. Exact figures shift as ASFA updates the retirement standard, but the current benchmarks in today’s dollars give a clear starting point. To comfortably retire at 67 as a homeowner, a single person needs a super balance of around $630,000. Couples need a super balance of $730,000 for a comfortable retirement at 67.
ASFA’s lump sum estimates generally assume retirees will:
Retire at or near age 67, the legislated age pension age for most Australians.
Draw down their retirement savings (including superannuation balances) over their lifetime, factoring in an assumed investment earning rate.
Receive at least a part age pension to supplement their income.
For a modest lifestyle, required balances are far lower. Singles need $110,000 for a modest retirement at 67, while $120,000 is needed for couples to retire modestly at 67. The age pension does most of the heavy lifting at these levels.
Many households, however, spend beyond the “comfortable” line. Higher pre-retirement annual income, level private health insurance, and higher-cost hobbies mean additional funds are needed. People tend to underestimate what they’ll actually spend in the first decade of retirement.
Planning questions differ by household type:
Single: How much flexibility do I want to travel or relocate? Can I retire early, or do I need to work longer?
Couple: Do we both want to retire at the same time? How long will one income need to support two people before both fully retire?
Age Pension basics: different rules for single and couple households
The age pension sits alongside superannuation funds as a key retirement income source. For Australians with modest retirement savings, it can be the primary income stream. The age pension can supplement retirement savings for comfort even among those with larger super.
Key differences between singles and couples:
Singles receive a higher age pension rate per person than each member of a couple. The maximum annual pension for a single is roughly in the low-to-mid $30,000s (including supplements), while a couple receives a combined amount in the low-to-mid $40,000s.
For age pension eligibility, couples are assessed as a combined unit for both the income test and the asset test.
Singles face lower assets and income thresholds but get more pension per dollar at low asset levels.
The taper rate on the asset test effectively “taxes” assets above the lower thresholds. Unless your investment returns exceed this taper, you’re spending down principal faster than you might expect. The average australian retiree often underestimates how quickly this reduces entitlements.
Why these differences matter for your plan:
Singles may prioritise keeping assessable assets and income below thresholds for longer to preserve full pension access.
Couples may accept higher asset levels knowing they still qualify for a part pension under more generous combined thresholds.
Separating finances within a couple does not change the combined assessment for Centrelink purposes.
Always check Services Australia for current rates and thresholds before making decisions.
Asset and income tests: strategic implications for couples vs singles
Both singles and couples must satisfy the age pension assets test and income test. Whichever test produces the lower pension amount is the one that applies.
Under the 2026–27 structure:
Single homeowners can hold around $333,000 in assessable assets before the full pension starts reducing. The part pension cuts out entirely at roughly $733,500.
Couple homeowners can hold about $499,000 combined before reductions begin, with the part pension phasing out around $1.1 million.
The income test works similarly. Singles have a lower fortnightly “free area” (around $226) before payments reduce. Couples have a higher combined threshold (around $396), but it’s not double, which singles reflects the system’s recognition of shared living costs.
Strategy takeaways for couples:
Couples can own more in super, investments, or business assets before the pension is affected.
Couples can split up to 85% of before-tax super contributions with their partner, which can help balance superannuation balances and manage tax.
Trying to “split” other assets between partners does not improve age pension outcomes, since Centrelink assesses combined totals regardless.
Strategy takeaways for singles:
A single person receives a higher per-person pension, but must keep assets and assessable income lower to maintain entitlement.
Salary sacrificing into super before retirement can help manage assessable income in the years before you retire.
Consider how your financial situation will shift if you move from being part of a couple to single through separation or bereavement.
Retirement lifestyle: modest vs comfortable for couples and singles
A modest level of retirement covers basic needs with limited discretionary spending: think inexpensive restaurants occasionally, a reasonable car, basic health insurance with limited gap payments, and essential home repairs. A comfortable lifestyle includes the ability to fund an international trip every few years, home improvements, regular dining out, a reliable vehicle, and better health cover.
ASFA’s modest retirement standard for homeowners largely relies on the full or near-full age pension, with super and other savings topping up for extras. The comfortable retirement standard needs significantly more private retirement savings. A comfortable retirement requires approximately $1,505 per week for couples and about $1,071 for singles.
For a single, a comfortable and modest retirement yearly budget generally includes occasional domestic holidays, basic home repairs and insurance, running a reasonable car, internet, and private health insurance with some out-of-pocket medical expenses.
For a couple, the same items are shared across two people, and more travel and entertainment options open up if health allows. Aggregate spending is higher, but per-person cost is lower than two singles. Some households want a lifestyle above ASFA’s comfortable standard – frequent overseas travel, helping family, or philanthropy – and will need larger super or investment balances.
Renters typically need more super to afford a comfortable retirement compared to homeowners. Moneysmart’s ASFA breakdown shows a modest single renter needs $51,164 per year, compared to $36,434 for a homeowner.
Test your own current lifestyle budget against both standards, then adjust targets based on whether you’re single or part of a couple, and whether you’ll own your home or pay rent.
Planning the retirement timeline: work, retirement age and income phases
Australians today often move through several phases before and during retirement:
Full-time work during their working life.
Transition-to-retirement, where reduced hours or part-time work begins (super can be accessed via a transition-to-retirement income stream from preservation age, between 56 and 60 depending on your date of birth).
Full retirement, which may start before or after the legislated age pension age of 67.
For couples, one partner might keep working while the other retires, creating a staggered shift in super contributions and income. Singles must rely solely on their own earning capacity and savings rate, which can mean working longer or making larger super contributions if they want to retire early.
Spending patterns typically follow three phases:
“Go-go” years (60s to early 70s): higher discretionary spend on travel, hobbies, and leisure activities.
“Slow-go” years (mid-70s to early 80s): more time at home, slightly less discretionary spend, but about half as much travel.
“No-go” years (80s+): lower overall spending, but higher health and care-related expenses.
Map your expected income streams – superannuation pensions, age pension, casual work, investment income – against these phases. A couple’s combined income may stay diversified even when one partner stops work, while a single person’s income drops more abruptly.
Key risks and protections: health, housing, longevity and estate planning
Common retirement risks include outliving your money (longevity risk), unexpected health events, rising rents or rates, and market volatility affecting your fund returns. How these risks feel depends on whether you’re single or part of a couple. One of the greatest risks retirees face is experiencing poor investment returns early in retirement.
Singles may worry more about who will look after them and the financial impact of needing home care or residential aged care with no partner to share the load. Couples must plan for the survivor’s needs if one partner dies first or has high health-care costs. Estate planning becomes more complex for couples due to survivor income planning needs.
Housing is central. Owning your own home is the foundation of both ASFA’s modest and comfortable retirement standards. For homeowners, downsizing later in retirement can also become an important financial strategy. Renters need materially higher retirement savings or ongoing income, as rent is often the largest single expense in retirement. Data from the Australian Bureau of Statistics confirms housing costs are a growing pressure point for older Australians.
Many retirees maintain private health insurance to manage hospital waiting times and choice of provider. Premiums for basic private health insurance eat a larger share of a single’s budget than a couple’s. Unexpected medical expenses can erode savings quickly without adequate cover.
Estate planning essentials for both groups include a current will, enduring power of attorney, and superannuation death benefit nominations that reflect your relationship status and dependants. Review these documents whenever your status changes – entering or leaving a de facto relationship, divorce, or widowhood – as this can alter who Centrelink assesses as your partner.
Where professional advice adds value (and how Money Path can help)
Retirement planning is complex because it blends superannuation rules, age pension eligibility, tax, investments, housing, and personal goals. These moving parts differ for couples and singles, and small missteps can cost you thousands over a retirement spanning decades. Knowing when and how to apply for the Age Pension can significantly improve retirement outcomes. Before acting on general guidance, always read the relevant product disclosure statement and financial services guide, and seek financial advice tailored to your financial situation.
A professional adviser using Money Path’s tools can:
Project combined super, age pension, and other retirement income streams year by year under different scenarios.
Model modest vs comfortable lifestyle spending for both couples and singles against the asfa retirement standard.
Highlight the impact of decisions like downsizing, extra contributions, or part-time work in the final years before retirement.
Money Path is designed to help Australians translate complex rules and retirement standards into a clear, actionable roadmap tailored to their household type, income, assets, and goals. Consider an advice session or digital projection well before your intended retirement age, so you have time to adjust your plan if needed.
FAQs: couples vs singles in Australian retirement planning
Is it easier to retire as a couple or as a single person in Australia? Couples benefit from shared expenses and higher combined thresholds for the asset test and income test, making it generally easier to maintain a comfortable lifestyle on the same savings. However, couples must also plan for what happens if one partner needs care or dies first, which adds complexity.
How does Centrelink decide if we are a couple for Age Pension purposes? Centrelink considers legal marriages and de facto relationships. Even if only one partner applies for the pension, combined income and assets are assessed. Separation due to illness is treated differently from voluntary separation.
If my partner keeps working, will that reduce my Age Pension once I retire? Yes. The income test applies to combined income. Centrelink deeming rules also play an important role in determining Age Pension entitlements. If your partner’s earnings push your total above the free area, your pension may reduce or cut out entirely. Model staggered retirement scenarios using tools like Money Path before making a decision.
How much superannuation do I need to retire at 67? ASFA estimates singles need $630,000 to retire comfortably at 67, and couples need $730,000. For a modest retirement, singles need about $110,000 and couples about $120,000 (homeowners). These figures assume you’ll also receive at least a part pension. Many Australians also worry about whether they’ll run out of money later in retirement.
I’m single and renting – do I need more retirement savings than a homeowner? Yes. Renting significantly increases your ongoing expenses. ASFA’s modest renter budget is nearly $15,000 per year higher than for a homeowner. You’ll need a larger lump sum or higher ongoing income to pay rent throughout retirement.
How often should couples and singles review their retirement plan? At least annually, and always after major life changes: moving house, changes in health, a partner retiring or returning to work, or relationship changes.
Whether you’re a couple or a single person, the key is to start with your own numbers, pressure-test them against the benchmarks, and revisit your plan whenever life shifts. Don’t wait until retirement is imminent – the earlier you act, the more options you have to spend, save, and retire on your terms. If you’d like personalised retirement advice, our Adelaide advisers can help you build a strategy tailored to your retirement goals and financial circumstances.
