Feeling unsure about retirement? Here’s where to start

If retirement feels confusing or a little overwhelming, that’s completely normal.

In fact AMP Research has shown that more than a third of Australians aged over 65 still feel financially insecure, worried their savings won’t last.¹

The good news is that understanding retirement doesn’t have to be complicated, and a few simple insights can make a real difference.

Why retirement can feel unclear 

Retirement can feel unclear because it asks you to plan for a long future while living very much in the present. You’re weighing decisions today that affect decades ahead, often without obvious reference points for what’s realistic or enough.

Most of the uncertainty comes down to a few practical questions:

• How much money is enough to live comfortably?

• How long does retirement actually last? 

• How will my super pay me an income, not just sit there as a balance?

• What will my day‑to‑day life look like once I stop working?

Clarity usually comes once those pieces start to make sense together.

How much money do I actually need to retire comfortably? 

There isn’t one perfect number, but benchmarks can help you sense‑check how you’re tracking. As a general guide, the Association of Superannuation Funds of Australia's (ASFA) Retirement Standard from December 2025 suggests for home-owning retirees wanting a comfortable lifestyle, this requires: 

• $54,840 per year for a single person

• $77,375 per year combined for a couple

To achieve this, AMP modelling derives the total balances required for a comfortable lifestyle in retirement: 

• $470,000 balance for a single person to achieve $54,840  per year

• $530,000 balance combined for a couple to achieve $77,375 per year.*

“Comfortable” doesn’t mean luxury. ASFA defines a comfortable retirement as including:

• Private health insurance 

• Eating out occasionally

• Running a car

• Domestic trips and the odd overseas holiday

• Owning your home and repairing it every so often 

Many retirees also receive some level of the Government Age Pension, depending on their circumstances, which forms part of their overall retirement income mix.

If your balance is lower or higher than these figures, it doesn’t mean you’re doing it wrong. It simply gives you a starting point for understanding what lifestyle your money may support.

How long does retirement usually last?

For many Australians, retirement lasts 20 to 30 years – and often longer. According to the Australian Government Actuary (AGA), life expectancy at retirement in Australia is around 92, and many people are living well beyond this. In fact, one in five Australian retirees are living past the age of 95.²

That means retirement can last almost as long as a full working career. It’s why planning isn’t just about how much money you have when you stop working, but also how that money supports you over time.

That’s also why keeping your money working for you in retirement matters. By converting your super into certain retirement income streams, your money can remain invested across a mix of assets – such as shares, property and fixed interest – so it can continue generating returns while being used to fund your lifestyle.

How does super turn into income when I stop working?

When you retire, your income doesn’t come from just one place – it usually comes from a mix of your super, the Government Age Pension, any other savings or investments you have and potentially some casual income if you are still working occasionally.

Super is often the main part of that mix, but it doesn’t automatically start paying you an income when you retire.  To start receiving regular payments, you generally need to convert your super into an income stream. So, you decide how your super pays you to support your day‑to‑day life.

For most Australians, retirement income comes from a combination of:

• income from your retirement income stream (from your super)

• support from the Government Age Pension, depending on eligibility
  

• income or savings or investments outside super

Within super, there are different ways your income can be set up. Some options prioritise flexibility, so while it still pays an income, it allows you to draw more when you need it. This is known as a flexible retirement income stream (also sometimes known as an allocated or account-based pension). Others are designed to provide an “income for life”, known as a lifetime retirement income stream (or a Lifetime Pension). Many people combine these approaches, using them in different ways as their needs change through retirement.

Making the shift from growing your super balance to using it to fund your lifestyle is one of the biggest adjustments in retirement. Once you understand that your income comes from a mix – not just your super – that shift tends to feel much more manageable.

What if I’m worried my money won’t last?

This is one of the most common concerns Australians share about retirement. After decades of saving, watching balances go down can feel uncomfortable, even when it’s exactly what the money is meant for.

One approach some retirees consider is setting aside part of their super to provide a regular income designed to keep paying for life, no matter how long they live through a lifetime retirement income stream. This can help cover living expenses (depending on how much was allocated to it), while leaving the rest more flexible for discretionary spending, one-off expenses like holidays and unforeseen costs.

AMP Super members have access to an AMP Lifetime Retirement Income. It’s designed to work alongside other income sources, like the AMP Flexible Retirement Income. It pays a monthly income which is based on how much you put in and it’s designed to provide members an income for life. The amount of income is set each financial year but may move up or down each year depending on investment performance of the underlying pool of assets supporting the AMP Lifetime Retirement Income. Like all retirement income options, it may not suit everyone (for example there is limited access to your funds), but understanding how it works can help you see what’s possible.

Read more about how AMP’s Lifetime Retirement Income can offer you an income for life here.

How this can help later in life

Concerns about income later in life are common, particularly as healthcare and aged care costs tend to increase as a share of your overall spending in your 80s and 90s. When you look at retirement through this longer‑life lens, longevity stops being abstract and becomes something practical to plan for.

For example, if you qualify for in‑home support through the Government’s Support at Home program (SAH Classification 5 and above), AMP’s Lifetime Retirement Income may increase your regular payments by up to 20% for up to two years.

This increase is designed to provide additional support, but it may not be enough to cover the full cost of care. Some retirees choose to combine this type of income with more flexible options that allow them to access larger amounts when needed, particularly for higher upfront or ongoing expenses.

It can be one part of a broader approach to managing care costs while you wait for Government funding to come through (which can take around 12 months on average).

Importantly, this kind of income can also help support the people you care about. If you don’t end up needing the additional income and pass away, a nominated spouse or reversionary beneficiary may be able to access it if they need support later on. It can be another way of helping to look after your partner, even when you’re no longer around.

That kind of flexibility can help ease financial pressure at a time when your focus is better spent on getting the care you need.

What should I do next?

A good place to start is understanding what your current super could actually mean for your day‑to‑day income in retirement.

Simple tools can help you turn a balance into something more meaningful, like how much you might get in retirement, what you might spend each year and how long that income could last. Our Retirement Needs Calculator can help you to understand how much you’ll need to fund the retirement lifestyle you want.

AMP Super’s Retirement Simulator lets you explore how the use of lifetime and flexible retirement income streams could help you make the most of your retirement savings.

If you’re close to retirement and would like to see how much you can get each month by starting an AMP Lifetime Retirement Income today, you can use AMP Super’s Lifetime Income Quote Tool. 

For AMP Super members who want personal guidance and advice, AMP Super’s Digital Financial Advice can help you understand where you stand, provide recommendations on the best mix between lifetime and flexible retirement income streams and explore possible next steps, with no extra fees. At any time, you can book a chat with an AMP intrafund financial adviser if you’d prefer to talk things through and get guidance tailored to you, also with no extra fees.

Clarity doesn’t mean locking in decisions. It simply gives you a steadier footing – and more choice – as you look ahead. When you can see how your money might support your life, retirement becomes less about uncertainty and more about choice.