The major retirement planning question we’re all getting wrong

When it comes to retirement, we’ve been taught to chase a number. A big, scary, often impossible number. $1 million. $2 million. Enough to live off the interest. Enough to never worry again.

The kind of number that shows up in glossy finance articles with neat little charts that make it look like you’re doomed if you haven’t got it sorted by 50.

When it comes to retirement, we’ve been taught to chase a number. But that approach could be leaving us all worse off.Credit: Getty

But here’s the truth: that kind of thinking doesn’t help most people. In fact, it’s making people feel anxious and defeated before they’ve even started. Because the question isn’t: “What’s the magic number?”

It is: “What does enough look like – for you?”

Enough depends on how you want to live. What your lifestyle costs. Whether you plan to keep working part-time. Whether you’ll own your home. How long you think you’ll live. And how comfortable you are with risk, growth and change.

For some people, enough is $40,000 a year and lots of time in the garden. For others, it’s $90,000 a year and regular travel. The idea that there’s one universal benchmark for a good retirement is outdated and unhelpful.

Once you define what enough looks like, you can work less, work differently or stop altogether.

The Association of Superannuation Funds of Australia (ASFA) put the current benchmark for a “comfortable” retirement at around $52,000 per year for a single person who owns their home, or around $74,000 for a couple.

And for renters, there’s new data out that says you need $47,000 for a single person and $64,000 for a couple. But many people don’t even need that much to be content. And others want more than that benchmark will stretch to. The key is knowing which side of the fence you’re on and planning accordingly.

You might be closer to ‘enough’ than you think

Every week, I see people who are quietly doing better than they realise. They’ve paid off their home. They have some super. Maybe they’ll keep earning a little, or plan to downsize later. But because they haven’t hit that big, shiny number they once saw in a retirement brochure, they feel like they’re behind.

The reality? They’re probably in a solid position, but no one’s ever helped them work out what their version of enough actually looks like.

This is one of the biggest mindset traps in retirement planning: chasing an abstract number without ever working out whether that number is right for your life. It’s like trying to pack for a trip without knowing where you’re going, what the weather will be or how long you’ll stay.

Start by working backward

Instead of trying to guess how much money you need, start with the life you want to live. What would a good year cost in retirement or semi-retirement or both? Add up the essentials (housing, food, bills, healthcare). Then the nice-to-haves (travel, hobbies, gifts, family time).

Now map out what income you might have coming in from super, the age pension, investments and part-time work. A gap may appear, or it might not. But suddenly it’s not about panic or guesswork. It’s about seeing your reality clearly and deciding which levers to pull. That’s your version of enough - not someone else’s.

Once you’ve got a clearer idea of what enough looks like, you can start shaping your finances around it. That might mean boosting super now to close a shortfall, adjusting your cost of living gradually, downsizing or freeing up capital later, or continuing part-time work longer than you expected.

And importantly, it gives you peace of mind. Because suddenly, it’s not about hitting some impossible goal. It’s about knowing what’s realistic and making choices that support it.

When working another three years isn’t worth it

One of the most common questions people ask in their 50s and 60s is “should I just keep working a bit longer, just to be safe?” And for some, the answer is yes. If you love your work, still have energy and it gives you meaning or social connection, continuing can be a great move, both financially and emotionally.

While it might feel right to work an extra few years ‘just in case’, it could cost you more than you think.Credit: Getty

But for others, those extra years of work don’t actually add much and they come at a cost. Especially if you’re in a role that’s draining, stressful or physically demanding.

If you’ve already got a home paid off, a modest super balance and even a part-pension in sight, working another three years full-time might only increase your income slightly, but delay your chance to start living the next version of your life.

And ironically, you might spend more in that time on things like takeaways, convenience and health costs, just to keep going. It’s worth asking: “Am I working longer because I need to, or because I haven’t done the maths?”

For some, delaying retirement by a few years simply adds extra money for the kids later on. That’s not wrong, but it’s worth checking whether that aligns with your real priorities. If you’re only working for “just in case” reasons, and it’s costing you time, freedom or health, it may not be the trade-off you think it is.

Once you define what enough looks like, you can work less, work differently or stop altogether knowing you’ve made a conscious choice, not just followed momentum.

Comparison is the real enemy

If there’s one thing that derails retirement confidence more than anything else, it’s comparison with people who aren’t really like you.

Looking at someone else’s lifestyle is a trap. Seeing their holidays, their car, their Instagram feed and assuming that’s the standard you need to be at. Or reading yet another article that says your super should be double what it is now.

But the truth is: most people are muddling through this quietly and sensibly. And they’re often doing it with more strength and strategy than they realise.

Do the maths but know that enough is not just a number. It’s a feeling. It’s the confidence that you’ve thought it through. That you know where you stand. That you’re not overreacting or under-prepared.

And if you’re still unsure, get help from your super fund or an independent adviser, who can help you see the whole picture. Because once you define what enough really looks like for you, everything else starts to fall into place.

Bec Wilson is author of the bestseller How to Have an Epic Retirement and the newly released Prime Time: 27 Lessons for the New Midlife. She writes a weekly newsletter at epicretirement.net and hosts the Prime Time podcast.

• Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making financial decisions.

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