Working out what superannuation balance you need at any retirement age depends entirely on your living situation, financial situation, and the lifestyle you want to live when you finally stop working.

The average retirement age in Australia is 65. But some like to wait a little longer, until they can (if eligible) access the Age Pension at age 67. Meanwhile, others might delay their retirement into their 70s to let their superannuation compound a little longer.

Don’t want to wait any longer than the average Aussie? Let’s break down what retiring at 65 might look like and how much money you will need.

What type of retirement do you want?

In Australia, retirement is generally split into two broad categories: modest and comfortable. 

A modest retirement, according to the Association of Superannuation Funds of Australia (ASFA), is defined as being able to cover expenses slightly above what the full Centrelink Age Pension would provide from age 67. This would cover things like basic health insurance and home repairs, but wouldn’t leave much room for leisure activities, and certainly not a holiday.

ASFA defines a comfortable retirement as one that enables retirees to maintain a good standard of living well beyond the age pension. It budgets for expenses beyond a modest retirement, including top-tier private health insurance and regular leisure activities. It allocates funds for home repairs or renovations, and perhaps even an annual holiday. 

What will a modest or a comfortable retirement cost me?

ASFA estimates that a modest retirement will cost around $36,434 per year for singles and $52,473 per year for couples. These figures assume you’ll also receive a part Age Pension.

For many Australians, a modest retirement is achievable, but it’ll require a tight budget, strict financial goals, and careful planning. But it goes without saying that every Australian strives to live a comfortable retirement far above the bare minimum.

A comfortable lifestyle means your budget will be a lot more flexible. 

ASFA data shows that a comfortable retirement is estimated to cost around $55,923 per year for singles and $78,566 for couples. Again, it assumes you’ll receive a part Age Pension and that you own your home in full. 

What do I need in my superannuation by age 65 to be able to afford that?

In order to fund a modest retirement, singles will need around $110,000 in their superannuation when they retire, and couples around $120,000. This should be achievable by the majority of Aussies by the time they reach age 65 and want to retire.

A comfortable retirement requires a lot more, though. Single Australians will need around $630,000 in their superannuation by age 65, and couples will need around $730,000.

There’s another catch

Keep in mind also that ASFA calculates these figures assuming you’ll access your superannuation from age 67. If you want to retire a little earlier at age 65, you’ll need to account for those two extra years of funds. 

You’ll also need to take into account your life expectancy from that point. 

For example, $54,840 per year on a balance of approximately $640,000 means ASFA’s data assumes you’ll only need to fund around 11 years of a comfortable retirement.

Add an extra two years on that, and your superannuation money will need to be spread more thinly.

Also, if you don’t own your home outright, you’ll also need to consider how you’ll pay your mortgage or rent on top of your other bills. 

It’s also wise to have an emergency fund set aside.

The post How much superannuation do I really need to retire comfortably at age 65? appeared first on The Motley Fool Australia.

More reading

• Where should I invest inside SMSFs instead of property?
• Could Woolworths shares be a smart defensive buy for FY27?
• Why US stocks have hit record highs while ASX shares have barely risen in 2026
• Buy, hold, sell: Beach Energy, Flight Centre, and Judo Capital shares
• How to invest $500, $5,000, and $50,000 on the ASX

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Self-managed superannuation funds (SMSFs) are a great way to invest in a variety of asset classes, including ASX shares. Residential property is one potential investment, though that area may be less attractive if SMSFs can’t borrow to buy.

Labor and the Greens have reportedly struck a deal to pass the capital gains tax (CGT) and negative gearing changes announced in the Federal budget, while including a new measure to end SMSF borrowing to buy properties.

With that change in mind, I think there are still plenty of compelling investment opportunities, particularly on the ASX share market.

Commercial properties AKA real estate investment trusts (REITs)

SMSF investors could decide to invest in commercial properties instead, which may provide a higher yield than residential properties.

I like investing in real estate investment trusts (REITs) because they’re easy to transact on the ASX. We can buy into a portfolio of properties in a single investment, and the properties are managed for us by property fund managers.

There are various REITs to choose from, including ones based on industrial properties, farmland and so on.

Three of my favourites in the sector include Rural Funds Group (ASX: RFF), which owns farmland, Centuria Industrial REIT (ASX: CIP), which owns industrial property, and Charter Hall Long WALE REIT (ASX: CLW), which owns a diversified portfolio of properties with long leases.

There are other REIT sectors, like shopping centres and office buildings, though they face headwinds, so I’d be very selective about those two areas and only buy REITs at an attractive discount to their net asset value (NAV).

ASX dividend shares with fully franked dividends

An even more attractive area to invest could be companies that pay attractive, fully franked dividends. Franking credits are refundable tax offsets, which are great for Australian SMSF investors.

ASX blue-chip shares could be some of the most reliable businesses to own. I’m thinking of names like Telstra Group Ltd (ASX: TLS), Bunnings and Kmart owner Wesfarmers Ltd (ASX: WES) and Coles Group Ltd (ASX: COL). They each have a solid dividend yield and a track record of increasing their dividends annually over the last few years.

There are a few other S&P/ASX 200 Index (ASX: XJO) shares that have a strong track record of reliability, including Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) and APA Group (ASX: APA). Lovisa Holdings Ltd (ASX: LOV) and JB Hi-Fi Ltd (ASX: JBH) also have an impressive track record of growing dividends over the long-term.

Finally, I’m a big fan of listed investment companies (LICs), which allow investors to diversify and gain exposure to quality assets while also receiving attractive dividend yields and growing payouts.

Some of my favourite LICs for passive income are MFF Capital Investments Ltd (ASX: MFF), WCM Global Growth Ltd (ASX: WQG), L1 Long Short Fund Ltd (ASX: LSF), Future Generation Global Ltd (ASX: FGG), Future Generation Australia Ltd (ASX: FGX), Hearts and Minds Investments Ltd (ASX: HM1) and WAM Microcap Ltd (ASX: WMI).

The post Where should I invest inside SMSFs instead of property? appeared first on The Motley Fool Australia.

More reading

• How to invest $500, $5,000, and $50,000 on the ASX
• Want a pay rise? These ASX dividend shares keep delivering
• 3 top ASX shares to buy for an SMSF
• 3 ASX stocks that should be in every retirement portfolio 
• 3 ASX dividend favourites are hitting 52-week highs today. Are investors getting defensive?

Motley Fool contributor Tristan Harrison has positions in Future Generation Australia, Future Generation Global, Hearts And Minds Investments, L1 Long Short Fund, Mff Capital Investments, Rural Funds Group, Wam Microcap, Washington H. Soul Pattinson and Company Limited, and Wcm Global Growth. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Apa Group, Mff Capital Investments, Rural Funds Group, Telstra Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Lovisa and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Woolworths Group Ltd (ASX: WOW) has not been the easiest ASX share to own recently.

Supermarket investing can look simple from the outside, but the reality is more demanding. Customers want value, suppliers want fair prices, regulators are watching, costs keep moving, and competition does not disappear.

Even so, I think Woolworths could be a smart defensive buy for investors looking ahead to FY27.

A business built around repeat decisions

The appeal of Woolworths starts with frequency.

Most households do not think about groceries as an investment theme. They just keep buying them. Week after week, people need food, cleaning products, personal care items, pet supplies, and household essentials.

That repeat demand gives Woolworths a strong base.

The company has a large store network, a major online presence, loyalty data, supply chain scale, and relationships with millions of customers. That gives it many ways to improve the shopping experience, manage stock, personalise offers, and make the weekly shop easier.

I think that customer connection is valuable.

In retail, small gains can matter. A better app, a faster delivery slot, fewer out-of-stocks, sharper pricing on key items, or a cleaner store experience can all influence where people spend their grocery budget.

Defensive does not mean effortless

Woolworths still has plenty of work to do.

Grocery retail has become politically sensitive because households are under pressure. The company needs to balance margins, customer trust, supplier relationships, staff costs, and investment in stores and technology.

That is a difficult balance.

But I think the best defensive businesses are not the ones with no challenges. They are the ones with enough scale, relevance, and cash generation to keep working through them.

Woolworths has those qualities.

It also has a place in the economy that should remain important regardless of market mood. People may delay a holiday, a new appliance, or a home renovation. They still need groceries.

Why I’d consider buying Woolworths shares

For investors, the question is whether Woolworths can turn its defensive position into acceptable long-term returns.

I think it can.

The company does not need to become a high-growth technology stock. It needs to keep earning customer trust, improve productivity, use data well, invest in online and store operations, and return cash to shareholders over time.

That may sound unexciting, but it can be valuable in a diversified portfolio.

Woolworths can provide a different kind of exposure to the ASX. It is linked less to commodity prices or banking margins and more to everyday household spending. That can make it useful when investors want stability.

Foolish takeaway

Woolworths is not a perfect business, but I think it remains a useful one.

The company sits close to Australian households, has scale that few retailers can match, and operates in a category where demand keeps returning. In FY27, that kind of resilience could be appealing if investors remain nervous about the economy.

The investment case is about owning a business that can keep serving customers, generating cash, and adapting to a tougher retail environment. For investors wanting a defensive ASX share with long-term relevance, I think Woolworths is worth considering.

The post Could Woolworths shares be a smart defensive buy for FY27? appeared first on The Motley Fool Australia.

More reading

• 3 ASX dividend favourites are hitting 52-week highs today. Are investors getting defensive?
• Are Woolworths shares still a buy at a 52-week high?
• This ASX 200 giant just hit a 52-week high. Is it getting too expensive?
• Woolworths shares soar to new multi-year high: Buy, sell or hold?
• One ASX dividend and one ASX growth stock to buy now

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.