How much do I need to retire?
Calculate the retirement corpus you need to generate your desired annual income. Uses the 4% safe withdrawal rate, Australian super rules, and age pension estimates.
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Understanding the 4% rule
- ✅ Withdraw 4% of your portfolio each year
- ✅ For $60k/year: need $1.5M ($60k ÷ 0.04)
- ✅ For $80k/year: need $2.0M ($80k ÷ 0.04)
- ✅ For $100k/year: need $2.5M ($100k ÷ 0.04)
- ✅ Based on Trinity Study (historical 30-year success rate)
Age pension asset test (2024-25)
- Full pension (single): ~$28,000/year
- Full pension (couple): ~$42,000/year
- Homeowner threshold: $301,750 (single)
- Non-homeowner: $543,750 (single)
- Taper rate: $3/fortnight per $1,000 over
- Cut-off (homeowner): ~$674,000 (single)
Your home is excluded from the asset test. Super and investments count.
How this calculator works
This Australian retirement income calculator uses the 4% safe withdrawal rate and current FY2024-25 age pension rules to estimate how much you need to retire. It considers both your personal savings and potential age pension entitlements.
The 4% safe withdrawal rate explained
The 4% rule comes from the Trinity Study, which analysed US stock and bond returns from 1926-1995. It found that withdrawing 4% of your portfolio in year one, then adjusting for inflation each year, had a 95%+ success rate over 30-year periods. Your "FIRE number" is 25x your annual expenses (the inverse of 4%).
Australian age pension considerations
The age pension provides a safety net that can reduce how much you need to save. However, eligibility depends on assets and income tests. For FY2024-25:
- Age eligibility: 67 years for people born from 1 January 1957
- Full pension (single): Approximately $28,000 per year ($1,064.00 per fortnight)
- Full pension (couple combined): Approximately $42,000 per year ($1,604.00 per fortnight)
- Asset test taper: Pension reduces by $3 per fortnight for every $1,000 of assets over the threshold
Superannuation in retirement
After age 60, withdrawals from a taxed super fund are completely tax-free. This makes super one of the most tax-effective retirement income sources. However, your super balance counts towards the age pension asset test, so larger super balances may reduce or eliminate pension eligibility.
Common retirement income questions
Can I retire on $60,000 per year?
To retire on $60,000 per year, you typically need $1.5 million in savings. However, if you're eligible for the full age pension (~$28,000/year for singles), you would only need to generate $32,000 from your savings, requiring approximately $800,000.
How much do I need to retire on $80,000 per year?
For an $80,000 annual retirement income, you need approximately $2 million in retirement savings. With a partial age pension, this could be reduced to $1.5-1.8 million depending on your assets.
Can I retire on $100,000 per year in Australia?
To maintain a $100,000 per year retirement lifestyle, you'll need $2.5 million in savings. At this income level, you won't be eligible for the age pension due to asset and income tests.
Factors that affect your retirement number
- Lifestyle: Modest vs comfortable retirement standards
- Healthcare: Private health insurance and medical costs
- Housing: Owning your home outright reduces costs significantly
- Longevity: Planning to age 95+ requires more savings
- Inflation: 2-3% annual inflation erodes purchasing power