As we approach retirement, the age old question is often:
“How much money will I need to fund the lifestyle I want?”

It’s an obvious question but it doesn’t have a single, universal answer.

Rather than there being one “magic number” for retirement, your retirement number depends on the kind of lifestyle you want to live, the choices you make, and the resources available to you. In other words, retirement planning is personal.

So what should you think about when working out your retirement number?

Why there’s no one size fits all number

It’s tempting to look for a single benchmark that tells you exactly how much super and investments you’ll need. But retirement isn’t lived on a spreadsheet, it’s lived day to day.

Different people want very different retirements. Some plan for a simple, low key lifestyle focused on family, local activities and keeping costs down. Others picture frequent travel, dining out, helping children or grandchildren, or pursuing hobbies that cost more.

What matters isn’t comparing yourself to a national figure - it’s understanding:

• what kind of life you want to live, and
• how much income is needed to support it over time.

Seen this way, your retirement number is less about hitting a target balance and more about funding the lifestyle you value.

Why retirement costs are rising

Recently, estimated retirement number amounts are increasing due to the rising cost of living that Australians are experiencing.

Everyday expenses such as healthcare, insurance, utilities and general living costs have increased significantly in recent years—and retirees feel this just as much as working Australians. Maintaining the same standard of living today typically costs more than it did even five years ago.

This means many retirees need to rely more heavily on their private savings and investments to support their desired lifestyle, particularly as living longer means retirement can span 20–30 years or more.

How can you work out your retirement number?

1. Start with the lifestyle you want

The first and most important step is deciding what you want your retirement to look like.

Ask yourself:

• Will you travel regularly or mostly stay close to home?
• Do you plan to dine out often or prioritise home based living?
• Are hobbies, memberships or helping family important to you?
• What standard of housing do you want to maintain?

Thinking through these questions helps you identify the types of expenses you’ll face - from essential costs like housing and healthcare through to discretionary spending on travel and leisure.

These lifestyle estimates aren’t rules or targets - they’re a way of mapping out what your retirement might cost and what income you’d like to generate.

2. Consider all your sources of retirement income

Superannuation is often a major part of retirement funding but it’s rarely the only source.

Other potential income sources may include:

• some level of Age Pension entitlement
• investments held outside super
• rental income
• or capital released through downsizing or changing living arrangements.

Housing decisions in particular can have a big impact. For some people, downsizing later in life can free up capital that helps fund retirement income or provides greater financial flexibility.

What’s more, the types of investments you can use to provide your retirement income continue to evolve. For instance, new and innovative products are now available that provide more income certainty for life. They typically complement traditional account-based pensions and may help create a more stable and sustainable income stream over your retirement.

Your Bridges Financial Planner can help you assess the right mix of strategies and income sources based on your personal circumstances.

Retirement spending isn’t flat

Another important insight is that retirement spending usually changes over time.

Many people experience what’s often called the “retirement smile”—a shape pattern where spending is higher in the early years of retirement, eases in the middle years, and may rise again later due to healthcare needs.

• Early retirement: more travel, hobbies and social activities
• Mid retirement: spending often stabilises
• Later years: essential and healthcare costs become more prominent

That’s why a single retirement figure is really an average over many years—not a fixed amount you’ll spend every year.

Understanding this helps you plan more realistically and avoid unnecessary anxiety about short term fluctuations.

Saving for retirement isn’t linear either

Just as retirement spending changes, the journey to retirement isn’t a straight line.

There are times when saving feels difficult—such as while paying off a mortgage, supporting children or dealing with unexpected costs. Later in life, many people find they have more capacity to boost savings as debts reduce or major life events occur.

This might include:

• making higher super contributions later in your career
• selling a business
• receiving an inheritance
• or downsizing the family home.

Superannuation rules also allow flexibility to contribute more later in life, meaning feeling “behind” at one point doesn’t have to mean staying behind.

The bottom line

Peace of mind in retirement doesn’t come from chasing a national benchmark or comparing yourself to others. It comes from turning an abstract idea into a personal, well considered plan.

Your retirement number is unique, just like your lifestyle, goals and circumstances. The key is understanding what matters to you and having a strategy that supports it over time.

That’s where advice can make all the difference.