Contents

*Note:** This article lists expected annual retirement incomes for a $1 million starting retirement balance, when savings are invested during retirement delivering returns of 3% or 2% each year. If you opt for a 3% investment return, rather than, say, 5% or 7% return, during retirement, then you will need to accept a much lower annual income for the same lump sum in retirement. For the expected annual retirement incomes when receiving 5% or 7% investments returns on a $1 million starting retirement balance, see SuperGuide article **Crunching the numbers: a $1 million retirement (7% and 5% returns)**. The article below covers retirement incomes when retiring at age 58, age 61, age 66, age 67 and age 70. The annual income figures (where relevant) include Age Pension rates. Latest article update is February 2018.*

What does a $1 million lump sum deliver in retirement when your savings earn 3%, or even 2%, a year during retirement?

We are often asked the question ‘how much super is enough for a worry-free retirement?’, and we regularly update our special *SuperGuide *articles on this topic for our readers. In this article we’re answering the question: what does a $1 million retirement look like in a lower-return environment? This article forms part of a three-part feature (see links for these articles within this article, and at end of this page) for those Australians seeking a truly comfortable lifestyle in retirement:

- $1 million retirement at 3% or 2% returns (this article)
- $1 million retirement at 5% or 7% returns
- $1.6 million retirement at 5% or 7% returns.

**Note:** If you delay retirement until an older age, then your $1 million will deliver a higher income for a set number of years, or your required income will last longer. Of course, depending on your expectations, you may not need anywhere near $1 million to retire comfortably (see *SuperGuide* article How much super do you need to retire comfortably?).

In this article, we do the numbers for those who are aiming to accumulate the magic $1 million for retirement. Due to the many requests from readers seeking income figures that take into account the low-return environment, we include annual retirement incomes based on your savings being invested at 3%, as well as returning 2%. We include calculations for those retiring at age 66 (minimum Age Pension age is now 65.5 years and increasing to 66 years from July 2019), and age 67 (aligning with the increasing Age Pension age), and age 70 (for those who wish to work longer, or need to work longer), and age 58 (for those intending to retire early, and who can access super benefits at this age), or age 61.

**Note: **For those readers expecting much higher investment returns in retirement (that is 5% or 7% a year), see *SuperGuide* article Crunching the numbers: a $1 million retirement (7% and 5% returns).* *In a related article, we also crunch the numbers for those readers who aspire to a $1.6 million retirement (see *SuperGuide* article Crunching the numbers: a $1.6 million retirement). You can also try out *SuperGuide*’s $1 million Retirement Reckoner and the How Much Super Is Enough Reckoner .

**Quick access to updated tables: **If you’re a regular reader of this article, then you can access the updated tables by clicking on the links immediately below. If you are reading this article for the first time, then we strongly encourage you to continue reading the text below rather than clicking immediately to the tables (we provide links to the tables throughout the article). This article highlights the importance of investment returns, retirement age and Age Pension entitlements when determining the level of annual retirement income you can expect, and how long that income will last. We have created a table for couples (Table 1) and a table for singles (Table 2) due to the different Age Pension treatment for singles and couples.

- Table 1: If you’re part of a COUPLE and retire with $1 million
- Table 2: If you’re SINGLE and retire with $1 million

*Important:** The calculations contained in this article are merely a conversation-starter for your retirement plans. The assumptions used for the calculations appear at the end of the article.*

## Remember, you may not need $1 million…

If $1 million is beyond your wildest dreams then check out our other *SuperGuide* articles dealing with the topic of how much super do I need? Even when you have a small amount of super savings, you may be pleasantly surprised by what your retirement savings can deliver, especially if you’re entitled to a FULL or PART Age Pension.

According to ASFA, you can live a modest life in retirement on around **$35,189** a year as a couple, and a comfortable life on just over **$60,000** a year, and the lump sums you need for $60,000 a year (indexed) is well under $1 million, assuming an annual investment return of 3% on retirement savings, and taking into account the Age Pension, and assuming you don’t necessarily want the money to last until you reach 100 years of age.

For example, assuming Age Pension age is 66 years (Age Pension age is now 65.5 years, and increasing to at least 66 years from July 2019 for those born after December 1953), a couple can secure a modest lifestyle **($35,189** a year) with hardly any private savings ($3,000), because the FULL Age Pension for a couple is now **$34,507** (applicable from 20 September 2017, excluding Energy Supplement). Without the Age Pension, a couple would need a lump sum of **$930,000** to deliver the equivalent annual retirement income of **$35,189** (assuming retirement assets are generating a 3% return), and **$590,000** assuming retirement assets are generating a 7% return.

**In comparison:** With a PART Age Pension, a lump sum of around **$890,000 **can deliver a couple roughly **$60,500** (indexed) a year in retirement until after the age of 91, according to the ASIC MoneySmart Retirement Planner, and assuming the money is invested in assets that return 3% a year. (If your retirement savings generated a 7% return each year, you would only need a lump sum on retirement of **$450,000** to generate **$60,500** (indexed) a year until after the age of 91 – around half of what is needed when compared with your retirement savings generating 3% return).

*Note:** Investment returns can make a significant difference to the amount of money you need to save for your retirement. If your money is returning 3% a year (rather than 5%), then you will need $170,000 more as a couple to finance roughly $60,500 a year (indexed) for 25 years, that is, until after the age of 91 (including Age Pension entitlements). If your money is returning 3% a year (rather than 7%), then you will need $440,000 more as a couple to finance roughly $60,500 a year (indexed) for 25 years, that is, until after the age of 91 (including Age Pension entitlements).*

For more information on how to achieve a comfortable retirement without $1 million, read the *SuperGuide* article How much super do you need to retire comfortably?

**Tip:** After reading this article, if you’re aspiring to a $1 million retirement then it may be worthwhile having a chat with a financial adviser or an accountant about the most tax-effective, and ‘risk appropriate’ way to get there.

## So, what can $1 million deliver in retirement (3% return, or 2% return)?

Continue reading to find out what $1 million in today’s dollars can deliver you if you want your lifestyle to last until after the age of 91, or if you want your money to last until after the age of 101, or somewhere in between, and your savings deliver 3% a year (or 2% a year) during retirement. The average life expectancy for a 66-year-old woman is 87 (87.18) years, while average life expectancy for a 66-year-old man is 84.5 (84.41) years. Recognising that life expectancies are an average, and that roughly half of all Australians will live beyond their average life expectancy, we have based the calculations on the level of income lasting until after the age of 91, and until after the age of 101.

Even so, not everyone plans, or is able, to retire at age 66 (or whatever your Age Pension age is: to find out your Age Pension age see *SuperGuide* articles Age Pension age increasing to 67 years and Retirement Age Reckoner: Discover your preservation age and Age Pension age).

The tables and text below outline the annual incomes you can expect if you retire with $1 million, and you retire at age 58, 61, 66, 67 or age 70. You can also see the different incomes you can expect depending on whether you invest your retirement money generating a return of 3% or 2%, and whether you want your money to last until after age 91, or until after age 101.

**Note:** If you plan to retire at age 58, the figures in Table 1 (for a couple) and in Table 2 (for a single person), assume your preservation age is 58 years or younger. If you plan to retire at age 66, the figures assume your Age Pension age is 66 years or younger. Links to the tables appear below.

**Quick access to updated tables: **If you’re a regular reader of this article, then you can access the updated tables by clicking on the links immediately below. If you are reading this article for the first time, then we strongly encourage you to continue reading the text below rather than clicking immediately to the tables.

- Table 1: If you’re part of a COUPLE and retire with $1 million
- Table 2: If you’re SINGLE and retire with $1 million

**Summary point, for a couple: **A couple retiring today with **$1 million** can expect an indexed annual retirement income of between **$62,688** (from age 66 until after the age of 91, and 3% return) and **$50,407** (from age 66 until after the age of 101, and 2% return). See text and Table 1 (later in the article) for further explanation. A couple retiring today at age 58 with **$1 million** can expect an indexed annual retirement income of between **$53,729** (from age 58 until after age 91, and 3% return) and **$46,085** (from age 58 until after age 101, and 2% return). See text and Table 1 (later in the article) for further explanation. We assume Age Pension age is 66 years or younger when retiring at age 66, and preservation age is 58 years or younger, when retiring at age 58.

**Summary point, for single person:** A single person retiring today with **$1 million** can expect an indexed annual retirement income of between **$49,341** (from aged 66 until after the age of 91, and based on 3% return) and **$37,593** (from age 66 until after the age of 101, and based on 2% return) and. A single person retiring today at age 58 with **$1 million** can expect an indexed annual retirement income of between **$41,355** (from age 58 until after age 91, and 3% return) and **$33,367** (from age 58 until after age 101, and 2% return). See text and Table 2 (later in the article) for further explanation. We assume Age Pension age is 66 years or younger when retiring at age 66, and preservation age is 58 years or younger, when retiring at age 58.

**Important:**The assumptions we use for this article and for Tables 1 and 2 appear at the end of the article.

We have created a table for couples (Table 1) and a table for singles (Table 2) due to the different Age Pension treatment for singles and couples.

- Table 1: If you’re part of a COUPLE and retire with $1 million
- Table 2: If you’re SINGLE and retire with $1 million

**Note:** The $1 million scenarios referred to in this article allow for 3% inflation when working out annual incomes, so the figures in these features automatically allow for the annual adjustment in retirement incomes. For further explanation of why planning for retirement using today’s dollars is more helpful than using tomorrow’s dollars, see *SuperGuide *article Retirement income: Today’s dollars, and why $1 million can’t last forever.

**Tip:** You can also try out *SuperGuide’s* $1 million Retirement Reckoner and the How Much Super Is Enough Reckoner .

## If you’re part of a COUPLE and retire with $1 million

Due to a stricter Age Pension assets test, which took effect from January 2017, a couple with **$1 million** in super on retirement will be eligible for a PART Age Pension later in retirement, rather than when first retired.

**Note:** Also, due to the more generous treatment of assets for a couple when determining eligibility for the Age Pension (compared with a single person), a couple who retire with $1 million, when eventually they become eligible for a PART Age Pension later in retirement, will receive a greater PART Age Pension (combined) than a single person owning the same amount of assets.

The scenarios for a couple are divided into five timeframes (also see Table 1 and supporting text):

- Couple – retiring at age 58 (current minimum age for accessing super)
- Couple – retiring at age 61
- Couple – retiring at age 66
- Couple – retiring at age 67
- Couple – retiring at age 70

**Note:** Couples (see Table 1) can enjoy comparatively higher incomes than single people (see Table 2) with the same amount of retirement savings due to receiving a larger PART Age Pension later on in retirement. Within Table 1 and Table 2, we indicate when a PART Age Pension starts using ‘part AP’.

**TIP:** You can also use our $1 million Retirement Reckoner to compare the annual retirement income (indexed) amounts listed in the table below. The Reckoner allows you to click on different retirement ages (age 58 or 61 or 66 or 67 or 70), different rates of investment returns (2%, 3%, 5% or 7%) and different life expectancies (until after the age of 91or until after the age of 101), to compare the level of retirement income you can expect.

#### Table 1: A $1 MILLION retirement (in today’s dollars) for a COUPLE

Investment return during retirement | 3% return on savings | 2% return on savings | ||
---|---|---|---|---|

Money lasts until at least: | Age 91 | Age 101 | Age 91 | Age 101 |

Annual income (indexed) when RETIRE at: | ||||

Age 58* | $53,729 | $48,476 | $50,714 | $46,085 |

Part AP | from age 67 | from age 67 | from age 67 | from age 67 |

Age 61 | $57,020 | $50,121 | $53,972 | $47,700 |

Part AP | from age 67 | from age 67 | from age 67 | from age 67 |

Age 66 | $62,688 | $53,085 | $59,532 | $50,407 |

Part AP | from age 69 | from age 70 | from age 69 | from age 70 |

Age 67 | $64,041 | $53,759 | $60,845 | $51,071 |

Part AP | from age 70 | from age 71 | from age 70 | from age 71 |

Age 70 | $68,871 | $56,051 | $65,657 | $53,249 |

Part AP | from age 73 | from age 74 | from age 73 | from age 73 |

**Tax may be payable on income when retiring before the age of 60, and the figures for age 58, assume your preservation age for accessing super is 58 years or younger.*

*Note: **See end of article for assumptions. ‘Part AP’ stands for PART Age Pension. Figures calculated using ASIC MoneySmart retirement planner calculator (**www.moneysmart.gov.au**)*

### Couple – retiring at age 58

If you want to retire before the age of 60, for example at age 58, then your super savings will have to finance a longer life in retirement, and you can expect to pay some tax on your pension income. You cannot claim the Age Pension until you reach your Age Pension age (for information on your Age Pension age, see *SuperGuide* articles Age Pension age increasing to 67 years and Retirement Age Reckoner: Discover your preservation age and Age Pension age).

You must have reached your preservation age to access your super benefits. The minimum preservation age has increased to 58 years, and anyone born on or after 1 July 1962 has a preservation age of at least 58 years, and preservation age increases to age 60 for those born on or after 1 July 1964 (for more information about your preservation age, see *SuperGuide* articles Accessing super: What is my preservation age? and Retirement Age Reckoner: Discover your preservation age and Age Pension age).

*Ignoring tax and assuming your retirement savings are invested at 3%*, if you retire today at age 58 with **$1 million** in super, as a couple, your savings can deliver you:

- A retirement income of
**$53,729**(indexed) a year until after the age of 91 (which includes a PART Age Pension from the age of 67). **$48,476**(indexed) a year until after the age of 101 (which includes PART Age Pension entitlements from the age of 67).

*Ignoring tax and assuming your retirement savings are invested at 2%,* if you retire today at age 58 with **$1 million** in super, as a couple, your savings can deliver you:

- A retirement income of
**$50,514**(indexed) a year until after the age of 91 (which includes a PART Age Pension from the age of 67). **$46,085**(indexed) a year until after the age of 101 (which includes PART Age Pension entitlements from the age of 67).

### Couple – retiring at age 61

If you retire before the age of 66 but after the age of 60, for example age 61, you can still expect tax-free pension payments although you will only be able to claim the Age Pension (if eligible) when you reach Age Pension Age (now increased to 65.5 years and increasing to age 66 from July 2019, and eventually increasing to age 67, depending on your date of birth – for more information, see *SuperGuide *article Retirement Age Reckoner: Discover your preservation age and Age Pension age).

*Assuming your retirement savings are invested at 3%*, if you retire today at age 61 with **$1 million** in super, as a couple, your savings can deliver you:

- A retirement income of
**$57,020**(indexed) a year until after the age of 91 (which includes a PART Age Pension from the age of 67). **$50,121**(indexed) a year until after the age of 91 (including a PART Age Pension from the age of 67).

*Assuming your retirement savings are invested at 2%,* if you retire today at age 61 with **$1 million** in super, as a couple, your savings can deliver you:

- A retirement income of
**$53,972**(indexed) a year until after the age of 91 (which includes a PART Age Pension from the age of 67). **$47,700**(indexed) a year until after the age of 101 (including a PART Age Pension from the age of 67).

### Couple – retiring at age 66

*Assuming your retirement savings are invested at 3%,* if you retire today, at the age of 66 (assuming this is your Age Pension age) with **$1 million** in super, as a couple, your savings can deliver you:

- a retirement income of
**$62,688**(indexed) a year until after the age of 91 (which includes a PART Age Pension from the age of 69). - an annual income of
**$53,085**(indexed) a year until after the age of 101 (which includes a PART Age Pension from the age of 70).

*Assuming your retirement savings are invested at 2%,* if you retire today, at the age of 66 (assuming this is your Age Pension age) with **$1 million** in super, as a couple, your savings can deliver you:

- a retirement income of
**$59,532**(indexed) a year until after the age of 91 (which includes a PART Age Pension from the age of 69). **$50,047**(indexed) a year until after the age of 101 (which includes a PART Age Pension from the age of 70).

### Couple – retiring at age 67

*Assuming your retirement savings are invested at 3%,* if you retire today, at the age of 67 with **$1 million** in super, as a couple, your savings can deliver you:

- a retirement income of around
**$64,041**(indexed) a year until after the age of 91 (which includes a PART Age Pension from the age of 70). **$53,759**(indexed) a year until after the age of 101 (which includes a PART Age Pension from the age of 71).

*Assuming your retirement savings are invested at 2%,* if you retire today, at the age of 67 with **$1 million** in super, as a couple, your savings can deliver you:

- a retirement income of
**$60,845**(indexed) a year until after the age of 91 (which includes a PART Age Pension from the age of 70) **$51,071**(indexed) a year until after the age of 101 (which includes a PART Age Pension from the age of 71).

### Couple – retiring at age 70

*Assuming your retirement savings are invested at 3%,* if you retire today, at the age of 70 with **$1 million** in super, as a couple, your savings can deliver you:

- a retirement income of
**$68,871**(indexed) a year until after the age of 91 (which includes a PART Age Pension from the age of 73) - an annual income of
**$56,051**(indexed) a year until after the age of 101 (which includes a PART Age Pension from the age of 74).

*Assuming your retirement savings are invested at 2%,* if you retire today, at the age of 70 with **$1 million** in super, as a couple, your savings can deliver you:

- a retirement income of
**$65,657**(indexed) a year until after the age of 91 (which includes a PART Age Pension from the age of 73) **$53,249**(indexed) a year until after the age of 101 (which includes a PART Age Pension from the age of 73).

**Important:**The $1 million scenarios referred to in this article allow for 3% inflation when working out annual incomes, so the figures in these features automatically allow for the annual adjustment in retirement incomes. For further explanation of why planning for retirement using today’s dollars is more helpful than retirement planning using tomorrow’s dollars, see

*SuperGuide*article Retirement income: Today’s dollars, and why $1 million can’t last forever.

**Note one:** For those readers expecting much higher investment returns in retirement (that is 5% or 7% a year), see see *SuperGuide* article Crunching the numbers: a $1 million retirement (7% and 5% returns). In a related article, we also crunch the numbers for those readers who aspire to a $1.6 million retirement (see *SuperGuide* article Crunching the numbers: a $1.6 million retirement). You can also use *SuperGuide’s* $1 million Retirement Reckoner to compare the annual retirement income (indexed) amounts listed in Table 1 (for a couple). The Reckoner allows you to click on different retirement ages (age 58 or 61 or 66 or 67 or 70), different rates of investment returns (2%, 3%, 5% or 7%) and until after age 91 or, until after age 101), to compare the level of retirement income you can expect.

**Note two:** If you don’t plan to have $1 million in super and you want a comfortable retirement, see *SuperGuide* article How much super do you need to retire comfortably? . You can also try *SuperGuide’s* easy-to-use How Much Super Is Enough Reckoner. You can find out the super savings you will need for a $50,000 a year retirement, a $60,000 a year retirement, a $150,000 a year retirement, and annual retirement incomes in between these amounts.

## If you’re SINGLE and retire with $1 million

The scenarios for a single person are divided into five timeframes (also see text and Table 2 below):

- Single person – retiring at age 58(current minimum age for accessing super)
- Single person – retiring at age 61
- Single person – retiring at age 66
- Single person – retiring at age 67
- Single person – retiring at age 70

**TIP:** You can also use *SuperGuide’s* $1 million Retirement Reckoner to compare the annual retirement income (indexed) amounts listed in the table below. The Reckoner allows you to click on different retirement ages (age 58 or 61 or 66 or 67 or 70), different rates of investment returns (2%, 3%, 5% or 7%) and different life expectancies (until after the age of 91 or until after the age of 101), to compare the level of retirement income you can expect.

#### Table 2: A $1 MILLION retirement (in today’s dollars) for a SINGLE PERSON

Investment return during retirement | 3% return on savings | 2% return on savings | ||
---|---|---|---|---|

Money lasts until at least: | Age 91 | Age 101 | Age 91 | Age 101 |

Annual income (indexed) when RETIRE at: | ||||

Age 58* | $41,355 | $35,562 | $38,575 | $33,367 |

Part AP | from age 69 | from age 71 | from age 68 | from age 70 |

Age 61 | $43,833 | $36,981 | $40,866 | $34,773 |

Part AP | from age 72 | from age 74 | from age 71 | from age 72 |

Age 66 | $49,341 | $40,009 | $46,181 | $37,593 |

Part AP | from age 76 | from age 78 | from age 75 | from age 76 |

Age 67 | $50,787 | $40,704 | $47,497 | $38,193 |

Part AP | from age 76 | from age 78 | from age 76 | from age 77 |

Age 70 | $55,732 | $43,029 | $52,289 | $40,306 |

Part AP | from age 79 | from age 81 | from age 78 | from age 80 |

**Tax may be payable on income when retiring before the age of 60, and the figures for age 58, assume your preservation age for accessing super is 58 years or younger.*

*Note:** See end of article for assumptions. ‘Part AP’ stands for PART Age Pension. Figures calculated using ASIC MoneySmart retirement planner calculator (**www.moneysmart.gov.au**).*

### Single person – retiring at age 58

If you want to retire before the age of 60, for example at age 58, then you can expect to pay some tax on your pension income. You cannot claim the Age Pension until you reach your Age Pension age (for information on your Age Pension age, see *SuperGuide* articles Age Pension age increasing to 67 years and Retirement Age Reckoner: Discover your preservation age and Age Pension age.

You must have reached your preservation age to access your super benefits. The minimum preservation age has increased increased to 58 years, and anyone born on or after 1 July 1962 has a preservation age of at least 58 years, and preservation age increases to age 60 for those born on or after 1 July 1964 (for more information about your preservation age, see *SuperGuide* articles Accessing super: What is my preservation age? and Retirement Age Reckoner: Discover your preservation age and Age Pension age).

*Assuming your retirement savings are invested at 3%,* if you retire at age 58 with **$1 million **in super, as a single person, your savings can deliver you:

- A retirement income of
**$41,355**(indexed) a year until after the age of 91 (which includes a PART Age Pension from the age of 69). - A retirement income of
**$35,562**(indexed) a year until after the age of 101 (which includes a PART Age Pension from the age of 71).

*Assuming your retirement savings are invested at 2%,* if you retire at age 58 with **$1 million **in super, as a single person, your savings can deliver you:

- A retirement income of
**$38,575**(indexed) a year until after the age of 91 (which includes a PART Age Pension from the age of 68). - A retirement income of
**$33,367**(indexed) a year until after the age of 101 (which includes a PART Age Pension from the age of 70).

**Single person – retiring at age 61**

If you retire before the age of 66 but after the age of 60, for example at age 61, you can still expect tax-free pension income although you will only be able to claim the Age Pension (if eligible) when you reach Age Pension Age (now increased to 65.5 years and increasing to age 66 from July 2019, and eventually increasing to age 67, depending on your date of birth – for more information, see *SuperGuide *article Retirement Age Reckoner: Discover your preservation age and Age Pension age.

*Assuming your retirement savings are invested at 3%,* and you retire today at age 61 with **$1 million** in super, as a single person, your savings can deliver you:

- A retirement income of
**$43,833**(indexed) a year until after the age of 91 (which includes a PART Age Pension from the age of 72). **$36,981**(indexed) a year until after the age of 101 (which includes a PART Age Pension entitlement from the age of 74).

*Assuming your retirement savings are invested at 2%*, and you retire today at age 61 with **$1 million** in super, as a single person, your savings can deliver you:

- A retirement income of
**$40,886**(indexed) a year until after the age of 91 (which includes a PART Age Pension from the age of 71). **$34,773**(indexed) a year until after the age of 101 (which includes a PART Age Pension entitlement from the age of 72).

**Single person – retiring at age 66**

*Assuming your retirement savings are invested at 3%,* if you retire today, at the age of 66 (assuming this is your Age Pension age) with **$1 million** in super, as a single person, your savings can deliver you:

- a retirement income of
**$49,341**(indexed) a year until after the age of 91 (which includes a PART Age Pension from the age of 76). **$40,009**(indexed) a year until after the age of 101 which includes a PART Age Pension from the age of 78).

*Assuming your retirement savings are invested at 2%*, if you retire today, at the age of 66 (assuming this is your Age Pension age) with **$1 million** in super, as a single person, your savings can deliver you:

- a retirement income of
**$46,181**(indexed) a year until after the age of 91 (which includes a PART Age Pension from the age of 75). **$37,593**(indexed) a year until after the age of 101 which includes a PART Age Pension from the age of 76).

**Single person – retiring at age 67**

*Assuming your retirement savings are invested at 3%,* and you retire today at age 67 with **$1 million** in super, as a single person, your savings can deliver you:

- A retirement income of
**$50,787**(indexed) a year until after the age of 91 (which includes a PART Age Pension from the age of 76). **$40,704**(indexed) a year until after the age of 101 (which includes a PART Age Pension entitlement from the age of 78).

*Assuming your retirement savings are invested at 2%*, and you retire today at age 67 with **$1 million** in super, as a single person, your savings can deliver you:

- A retirement income of
**$47,497**(indexed) a year until after the age of 91 (which includes a PART Age Pension from the age of 76). **$38,193**(indexed) a year until after the age of 101 (which includes a PART Age Pension entitlement from the age of 77).

**Single person – retiring at age 70**

*Assuming your retirement savings are invested at 3%,* if you retire today, at the age of 70 with **$1 million** in super, as a single person, your savings can deliver you:

- a retirement income of
**$55,732**(indexed) a year until after the age of 91 (which includes a PART Age Pension from the age of 79). **$43,029**(indexed) a year until after the age of 101 which includes a PART Age Pension from the age of 81).

*Assuming your retirement savings are invested at 2%*, if you retire today, at the age of 70 with **$1 million** in super, as a single person, your savings can deliver you:

- a retirement income of
**$52,289**(indexed) a year until after the age of 91 (which includes a PART Age Pension from the age of 78). **$40,306**(indexed) a year until after the age of 101 which includes a PART Age Pension from the age of 80).

**Important:** The $1 million scenarios referred to in this article allow for 3% inflation when working out annual incomes, so the figures in these features automatically allow for the annual adjustment in retirement incomes. For further explanation of why planning for retirement using today’s dollars is more helpful than retirement planning using tomorrow’s dollars, see *SuperGuide* article Retirement income: Today’s dollars, and why $1 million can’t last forever**.**

**Note one:** In a related article, I also crunch the numbers for those readers who aspire to a $1 million retirement but plan to generate higher returns of 5% or 7% (see *SuperGuide* article Crunching the numbers: a $1 million retirement (7% and 5% returns)). For those aspiring to a $1.6 million retirement (see *SuperGuide* article Crunching the numbers: a $1.6 million retirement). You can also use *SuperGuide’s* $1 million Retirement Reckoner to compare the annual retirement income (indexed) amounts listed in Table 1 (for a couple). The Reckoner allows you to click on different retirement ages (age 58 or 61 or 66 or 67 or 70), different rates of investment returns (2%, 3%, 5% or 7%) and until after age 91 or, until after age 101), to compare the level of retirement income you can expect.

**Note two:** If you don’t plan to have $1 million in super, and you want a comfortable retirement, see *SuperGuide* article How much super do you need to retire comfortably? . You can also try *SuperGuide’s* easy-to-use How Much Super Is Enough Reckoner. You can find out the super savings you will need for a $50,000 a year retirement, a $60,000 a year retirement, a $150,000 a year retirement, and annual retirement incomes in between these amounts.

#### $1 million retirement: Assumptions for text and Tables 1 and 2 (click to open and close)

## For more articles on how much super is enough…

If you are seeking more information about how much super is enough to live comfortably, then check out the following *SuperGuide* articles:

- How much super do you need to retire comfortably?
- Retirement income: Living on more than $60,000 a year
- How Much Super Is Enough Reckoner
- Retirement income: Want to live on $100,000 a year?
- The super challenge: At what age should I retire?
- Crunching the numbers: a $1 million retirement (7% and 5% returns)
- Crunching the numbers: a $1.6 million retirement
- $1 million Retirement Reckoner
- Life expectancy: Will you outlive your retirement savings?
- Retirement income: Come on, how much super do I really need?
- Retirement income: Today’s dollars, and why $1 million can’t last forever

It is wonderful to see this calculation using more modest returns. Thank you, Trish!! The only thing I would like further would be to see how much of the yearly income was generated by the superfund and how much was from the part age pension – in other words, how much of this is part age pension (because some of us are not entitled to it at all).

Another important point to note is that under this scenario, the kids don’t inherit anything (apart from the family home).

what about the scenario of taking just the minimum 5% of fund balance each year (or adjusted per the ‘rules’ at various ages)

I find that the 5% is actually too much money at the moment, for my pension lifestyle and am able to save the excess…… or possibly put it back into a Super Fund if the Libs changes are made (no work test)