ASFA Retirement Standard - Moneysmart.gov.au (2024)

FAQs

How much do I need to retire on $100,000 a year in Australia? ›

AASFA has found that the superannuation balance for a single person retiring at age 67 and seeking a 'comfortable' lifestyle is currently $595,000. For couples, it's a combined $690,000. This is estimated to be enough to fund $72,148.19 in annual income for a couple or $51,278.30 for a single person until age 84.

The average retirement savings for a person about to retire are approximately, $225,000, equal to $450,000 combined for a couple that has saved equally. Following the conservative rule of thumb and withdrawing 4% a year will provide this couple with another $1,500 monthly or $18,000 a year.

Yes, you can.

Let's say, for example, you have £300k in a pension after taking your tax-free cash, you have no outstanding debts or mortgage to pay off, and you're entitled to the full state pension at age 67 (or 68 from 2044). For this example, let's say you take £1,500 from your pension per month.

Say that you plan to retire at 62 with $600,000 saved. You expect to withdraw 4% each year, starting with a $24,000 withdrawal in Year One. Your money earns a 5% annual rate of return while inflation stays at 2.9%. Based on those numbers, $600,000 would be enough to last you 30 years in retirement.

$1 million is enough for a comfortable retirement if you retire at age 65. This will provide a single person with an income of $60,000 p.a. and a couple with $77,000 p.a., including Age Pension for around 30 years, based on an investment return of 6% p.a. and 3.0% p.a. inflation.

If you have $500,000 in savings, then according to the 4% rule, you will have access to roughly $20,000 per year for 30 years. Retiring early will affect the amount of your Social Security benefit.

$300,000 can last for roughly 26 years if your average monthly spend is around $1,600. Social Security benefits help bolster your retirement income and make retiring on $300k even more accessible. It's often recommended to have 10-12 times your current income in savings by the time you retire.

What is Considered a Wealthy Retirement in Australia? Back in the day, yet not too long ago, having $1 million at retirement was considered to be a wealthy retirement. These days, having $1 million is not overly uncommon.

Social Security offers a monthly benefit check to many kinds of recipients. As of December 2023, the average check is $1,767.03, according to the Social Security Administration – but that amount can differ drastically depending on the type of recipient. In fact, retirees typically make more than the overall average.

How much does the average retired person live on per month? ›

Safe Withdrawal Rate

Using our portfolio of $400,000 and the 4% withdrawal rate, you could withdraw $16,000 annually from your retirement accounts and expect your money to last for at least 30 years. If, say, your Social Security checks are $2,000 monthly, you'd have a combined annual income in retirement of $40,000.

Working an extra year decreases mortality rates by 11%, a new analysis shows.

Assuming a moderate withdrawal strategy of 4% annually, adjusted for inflation, $3 million could provide an annual income of $120,000 before taxes. This approach, known as the '4% rule', is designed to make your savings last for at least 30 years, accommodating a retirement lifestyle that exceeds average living costs.

If you retire at 60, with a super balance of $2 million, your chances of a comfortable retirement are high. Of course, that super won't last as long as if you retired at 70, because that money needs to last longer. Our retirement needs calculator can help you estimate your ideal retirement income and super.