The How Much Super Is Enough Reckoner allows you to discover how much superannuation you need in retirement to deliver your ideal indexed annual income over retirement (including PART Age Pension).
You can find out the super savings you will need for a $50,000 a year retirement, a $60,000 a year retirement, a $180,000 a year retirement, and annual retirement incomes in between these amounts.
The How Much Super Is Enough Reckoner is a handy tool to help our readers discover what your retirement can look like assuming you retire at your Age Pension age, whether you retire as a couple or a single person, how long you want your money to last and what investment returns are generated on your retirement savings.
You can also discover the impact of different investment returns (7% or 5% or 3%) on your expected annual income. Scroll down the page to access How Much Super Is Enough Reckoner.
Note: You can access other SuperGuide Reckoners by clicking on the links below:
- Retirement Age Reckoner: Discover your preservation age and Age Pension age
- SuperGuide’s Investment Performance Reckoners: How do they work?
- Retirement Income Reckoner
How does the How Much Super Is Enough Reckoner work?
SuperGuide’s How Much Super Is Enough Reckoner allows you to discover how much super you need on retirement to deliver you your desired indexed annual income over retirement (including part Age Pension), taking into account retirement age, investment returns and how long you want the income to last.
Select the criteria that interests you or affects you, and the Reckoner will then only list the scenarios that apply to that criteria. You can add extra criteria to enable you to compare scenarios.
The How Much Super Is Enough Reckoner is not a calculator, rather, we have produced the calculations for you, by using the ASIC MoneySmart Retirement Planner. Note that we have not used ASIC’s default assumptions, rather SuperGuide has created these calculations using our own tailored assumptions. We briefly outline the main assumptions used on this page, but refer to the SuperGuide articles listed at the end of the page support the information appearing in the How Much Super Is Enough Reckoner. Please also refer to the explanatory notes below the Reckoner, for a more detailed explanation.
Note: The How Much Super Is Enough Reckoner assumes Age Pension age is 66 years. Age Pension age has increased to 65.5 years, and increases to at least 66 years from July 2019, for anyone born after December 1953. If your Age Pension age is 66.6 years or 67 years, just add another year to how long the annual retirement income will last, and add another year to when the PART Age Pension starts, to give you an indication of the income you can expect. If you want to retire before your Age Pension age, then we suggest you refer to SuperGuide’s Retirement Income Reckoner.
How Much Super Is Enough?
|wdt_ID||Single or couple||Annual income required ($ indexed)||Return on savings (%)||Money lasts until||Lump sum needed||Part AP from|
|1||Single||50,000||3||After Age 91||$1.0 million||Age 76|
|2||Single||55,000||3||After Age 91||$1.18 million||Age 78|
|3||Single||60,000||3||After Age 91||$1.34 million||Age 80|
|4||Single||80,000||3||After Age 91||$1.95 million||Age 84|
|5||Single||100,000||3||After Age 91||$2.5 million||Age 86|
|6||Single||150,000||3||After Age 91||$3.85 million||Age 88|
|7||Single||180,000||3||After Age 91||$4.64 million||Age 89|
|8||Single||50,000||3||After Age 101||$1.46 million||Age 83|
|9||Single||55,000||3||After Age 101||$1.7 million||Age 87|
|10||Single||60,000||3||After Age 101||$1.94 million||Age 89|
Note 1: Due to the minimum pension payment requirements of an account-based pension, the account balance required to fund retirement incomes until age 101 (that is, to last for 35 years from age 66) runs out before age 101 for people seeking annual incomes of $150,000 or more, by default, and/or the lump sum amount required when money is invested at 5% per annum at these levels is above $5 million, which is the maximum that the ASIC MoneySmart retirement planner will process. If you are seeking these levels of income, see a financial adviser for specific amounts. For example, a single person seeking $180,000 a year income for 25 years with investments returning 5% a year, needs more than $5 million on retirement ($5 million delivers a single person $172,500 a year in today’s dollars for 25 years, or roughly $114,000 a year in today’s dollars for 35 years, while $5 million delivers a couple $176,400 a year in today’s dollars for 25 years, or roughly $119,000 a year in today’s dollars for 35 years).
Note 2: At income levels requiring more than $1.6 million in super savings, you may need to see a financial adviser to work out the balance of super (retirement and accumulation phase) and/or non-super savings (if applicable) required to fund your retirement in these circumstances.
Note 3: All scenarios assume you own your own home and you have personal assets (such as car, furniture etc) valued at $25,000. The figures in Table 1 look at the retirement phase from age 66 to age 91, and from age 66 to age 101. The figures in Table 1 also apply if your Age Pension age is higher than 66 years: for example, if your Age Pension age is 67, then you can apply the figures in the table but just add 1 year, so retirement phase from age 67 to age 92, and from age 67 to age 102
Note 4: Lump sum amounts are calculated using ASIC’s MoneySmart retirement planner. In Table 1, calculations assume 5% a year return net of fees on the account-based income stream account balance, and returns are reinvested. The annual income from the account-based income stream is indexed by 3% a year. Retirement age is 66 years, although the table can be applied to a retirement age of 66 or 67 years or later (for example, retirement age of 67 means income lasts until age 92, or age 102), or a retirement age of 70 years (income lasts until age 95, or age 105).
Note 5: For other table assumptions see SuperGuide article How much super do you need to retire comfortably?).
The How Much Super Is Enough Reckoner lists all the retirement scenarios in a table, but you can tick the following variables, to list the outcomes of interest to you, such as:
- Single or Couple (this is important for discovering your part Age Pension entitlement)
- Retirement age: assume retire at Age Pension age
- Return on savings: 3%, 5% or 7%
- Money lasts until after age: 91 or 101
You can opt to have the money last until after age 91 or after age 101, and your retirement money can be invested at 3%, 5% or 7%.
Note: The assumptions we used when calculating the annual retirement incomes contained in the How Much Super Is Enough Reckoner appear in the articles contained in the list at the end of this page.
For more helpful articles on how much super is enough for your retirement, see the following SuperGuide articles:
- How much super do you need to retire comfortably?
- Retirement income: Come on, how much super do I really need?
- Retirement income: Living on more than $60,000 a year
- Retirement income: Want to live on $100,000 a year?
- Crunching the numbers: a $1 million retirement (7% and 5% returns)
- Low yields: A $1 million retirement on 3% or 2% returns
- Retirement Income Reckoner
- Crunching the numbers: a $1.6 million retirement
- Retirement income: Today’s dollars, and why $1 million can’t last forever
- Financial freedom: Retirement planning in six steps
- The super challenge: At what age should I retire?
- Understanding your life expectancy
- Age Pension age increasing to 67 years (not 70 years)