How much income do I need for the retirement lifestyle I want?


As a general rule of thumb most Australians will need an income equal to about 65% of their pre-retirement income to maintain their lifestyle throughout retirement1. But if you’re expecting a large expense—like an overseas trip—you may need more.


You may spend more than a quarter of your life in retirement and the quality of your lifestyle throughout that time will depend on how much money you’ll have access to.

The figures in the table below give you an idea of how much you might need; lump sums have been calculated based on pre-retirement incomes. Only a financial plan based on your particular goals, needs and circumstances can provide you with information that relates to you.

If the lump sums in the table seem like a lot, speak with a financial adviser. He or she can help you plan to set up your investments so they continue generating income and growth throughout your retirement. Before investing make sure you understand the risks.

Pre-retirement income 65% of pre-retirement income Lump sum required2
$30,000 pa $19,500 pa $254,571
$50,000 pa $32,500 pa $423,721
$80,000 pa $52,000 pa $676,701

Next steps

Watch AMP’s How much superannuation will you need? video to understand how much your retirement may cost you—and what you can do to increase your nest egg.

Use AMP’s plan for your retirement calculator to see your predicted annual income in retirement. Keep in mind that if you're planning to retire at age 65 it’s likely you’ll live for another 20 years. The average Australian woman at age 65 has a life expectancy of about 87 years and men are expected to live to about 84 years. But there's a 50% chance you'll live longer3.


1 Rice Warner Actuaries, 2008 Report; commissioned by the Investment and Financial Services Association Ltd (IFSA).
2 Based on an AMP annuity quote at June 2006. 65 year-old male, 20-year nil residual capital value (RCV), nil indexation.
3 OECD Health Data October 2012, frequently requested data.



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Important information

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It’s important to consider your particular circumstances and read the relevant Product Disclosure Statement or Terms and Conditions before deciding what’s right for you. This information hasn’t taken your circumstances into account.

This information is provided by AMP Life Limited. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relation to products and services provided to you. All information on this website is subject to change without notice.