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Home / Plan your retirement / How much super do I need? / Is $2 million in super enough to retire on?

Is $2 million in super enough to retire on?

February 11, 2020 by Barbara Drury Leave a Comment

Reading time: 3 minutes

On this page

  • Transfer balance cap
  • Where to go for more
  • Income generated from a $2 million retirement super balance

A million dollars is often cited as the gold standard of retirement savings. It certainly sounds like a lot of money, but it may not provide the income you require if you are a couple or if one of you has high healthcare needs.

So we’ve decided to test run some higher retirement balances to help guide your planning, in this case $2 million. Using MoneySmart’s Retirement Planner we have calculated how much income $2 million in super will generate under a range of scenarios including:

  • Whether you are single or in a couple.
  • The age you plan to retire. We have selected 60, which is a common goal, then 65, 66, 67, 68, 70 and 75 to show the impact of delaying retirement.
  • How long you want your money to last. We run the numbers for age 85, 90, 95 and 100 on the basis that the average retiree will live until their mid-80s and some will celebrate 100.
  • The return on your $2 million, net of fees. The return your super investments earn in retirement will depend on the type of investments you choose. A higher ratio of growth to defensive investments will result in a higher long-term return. To demonstrate the difference a few percentage points can make, we break down the annual income received for an average net return of 2%, 3%, 4%, 5%, 6%, 7% and 8%.

Note: We do not consider it realistic to achieve returns of 7% or 8% per year net of all fees, particularly over such a long time period, but we have added these as points for comparison after requests from readers.

Discover the top performing pension funds and their long-term returns


We also assume you are a homeowner and include income from a full or part Age Pension if you are eligible (this may happen as your super balance reduces over time). However, we don’t take into account income from assets you may hold outside super.

All figures are in today’s dollars (adjusted for inflation). We have assumed an annual 2% rise in cost of living and an additional 1.2% rise in living standards per year.

Transfer balance cap

From 1 July 2017 there is a $1.6 million cap on the amount of super you can transfer into account-based pensions in retirement. The tables below assume that any retirement balance above $1.6 million remains in your super accumulation account, with the same fees and returns that applied prior to retirement.

The $1.6 million cap applies to individuals, which means a couple could have up to $3.2 million in individual accounts. However, if a couple has one account between them in a single name, the $1.6 million limit applies.


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For all the details, see SuperGuide’s Retirement Phase: A super guide to the $1.6m transfer balance cap.

Where to go for more

We hope that the figures in the tables below will get you thinking. The data in these tables is a small selection of possible outcomes. To plug in your own numbers, check out SuperGuide’s Super to income Reckoner which has nearly 9,000 options.

We also encourage you to try out MoneySmart’s Retirement Planner calculator with your projected super balance, retirement age, length of retirement and estimated investment returns.


Disclaimer

This article is only intended to give approximate retirement income figures that $2m in super may achieve. These figures do not take into account your personal circumstances or assets and are also based on projections about future investment returns which may not be achieved. We recommend that you undertake your own additional research for your own retirement planning, and wherever possible seek independent financial advice.


Income generated from a $2 million retirement super balance

First let’s look at various scenarios for a couple with a combined balance of $2 million on retirement.

Couple: Retiring at 60

Money lasting until age

Eligible for Age Pension?

Return on savings

2%

3%

4%

5%

6%

7%

8%

85

Yes $80,052 $86,759 $94,300 $102,721 $112,088 $122,362 $133,432
No $64,935 $73,758 $83,469 $93,869 $105,011 $116,725 $128,983

90

Yes $69,446 $75,260 $82,340 $90,533 $99,855 $110,449 $121,959
No $53,492 $61,620 $71,218 $81,937 $93,351 $105,515 $118,285

95

Yes $62,611 $67,565 $73,842 $81,763 $91,162 $101,956 $114,004
No $45,560 $52,935 $62,020 $73,034 $85,014 $97,668 $111,040

100

Yes $57,848 $62,244 $67,734 $75,063 $84,427 $95,651 $108,182
No $39,801 $46,427 $54,781 $65,375 $78,622 $91,951 $105,789

Couple: Retiring at 65

Money lasting until age

Eligible for Age Pension?

Return on savings

2%

3%

4%

5%

6%

7%

8%

85

Yes $96,820 $104,114 $112,053 $120,687 $130,029 $140,053 $150,664
No $82,737 $91,790 $101,489 $111,725 $122,459 $133,724 $145,442

90

Yes $80,365 $86,830 $94,300 $102,721 $112,088 $122,362 $133,432
No $65,334 $73,816 $83,415 $93,880 $105,011 $116,725 $128,983

95

Yes $70,299 $75,776 $82,454 $90,514 $99,855 $110,449 $121,959
No $54,029 $61,716 $70,915 $81,616 $93,314 $105,515 $118,285

100

Yes $63,579 $68,334 $74,141 $81,694 $91,115 $101,956 $114,004
No $46,227 $53,077 $61,497 $71,880 $84,472 $97,645 $111,040

Couple: Retiring at 66

Money lasting until age

Eligible for Age Pension?

Return on savings

2%

3%

4%

5%

6%

7%

8%

85

Yes $101,249 $108,626 $116,648 $125,351 $134,662 $144,659 $155,154
No $87,408 $96,493 $106,168 $116,357 $127,052 $138,196 $149,783

90

Yes $83,238 $89,694 $97,264 $105,750 $115,051 $125,293 $136,340
No $68,321 $76,810 $86,436 $96,900 $107,932 $119,552 $131,721

95

Yes $72,256 $77,740 $84,568 $92,653 $102,041 $112,522 $123,955
No $56,100 $63,834 $73,025 $83,656 $95,313 $107,439 $119,964

100

Yes $64,973 $69,802 $75,725 $83,269 $92,631 $103,452 $115,358
No $47,760 $54,641 $63,050 $73,362 $85,838 $99,063 $112,281

Couple: Retiring at 67

Money lasting until age

Eligible for Age Pension?

Return on savings

2%

3%

4%

5%

6%

7%

8%

85

Yes $106,130 $113,634 $121,767 $130,459 $139,852 $149,782 $160,220
No $92,540 $101,659 $111,349 $121,495 $132,113 $143,163 $154,651

90

Yes $86,133 $92,827 $100,469 $109,055 $118,373 $128,523 $139,433
No $71,464 $80,060 $89,742 $100,145 $111,061 $122,628 $134,662

95

Yes $74,064 $79,790 $86,727 $94,960 $104,268 $114,683 $126,056
No $58,218 $66,076 $75,318 $85,979 $97,514 $109,488 $122,116

100

Yes $66,275 $71,195 $77,273 $84,890 $94,316 $105,065 $116,879
No $49,294 $56,277 $64,751 $75,100 $87,526 $100,519 $113,652

Couple: Retiring at 68

Money lasting until age

Eligible for Age Pension?

Return on savings

2%

3%

4%

5%

6%

7%

8%

85

Yes $111,559 $119,254 $127,370 $136,240 $145,560 $155,385 $165,806
No $98,250 $107,441 $117,086 $127,208 $137,752 $148,670 $160,067

90

Yes $89,301 $96,213 $104,013 $112,557 $121,899 $132,022 $142,850
No $74,865 $83,667 $93,332 $103,655 $114,553 $125,951 $137,938

95

Yes $76,045 $81,889 $89,026 $97,342 $106,709 $117,057 $128,331
No $60,512 $68,489 $77,831 $88,444 $99,832 $111,724 $124,233

100

Yes $67,679 $72,759 $78,968 $86,669 $96,088 $106,729 $118,467
No $50,954 $58,020 $66,567 $76,925 $89,288 $102,066 $115,052

Couple: Retiring at 70

Money lasting until age

Eligible for Age Pension?

Return on savings

2%

3%

4%

5%

6%

7%

8%

85

Yes $124,684 $132,551 $141,017 $149,826 $159,130 $168,928 $179,063
No $111,867 $121,123 $130,753 $140,775 $151,164 $161,953 $173,058

90

Yes $96,828 $104,114 $112,053 $120,687 $130,029 $140,053 $150,664
No $82,827 $91,808 $101,489 $111,725 $122,459 $133,724 $145,442

95

Yes $80,633 $86,921 $94,306 $102,656 $112,088 $122,362 $133,432
No $65,646 $73,864 $83,336 $93,893 $105,011 $116,725 $128,983

100

Yes $70,892 $76,172 $82,593 $90,562 $99,855 $110,449 $121,959
No $54,590 $61,842 $70,505 $80,885 $93,065 $105,523 $118,285

Couple: Retiring at 75

Money lasting until age

Eligible for Age Pension?

Return on savings

2%

3%

4%

5%

6%

7%

8%

85

Yes $179,063 $176,760 $196,255 $205,350 $214,627 $224,126 $233,864
No $167,762 $177,068 $186,616 $196,371 $206,430 $216,672 $227,151

90

Yes $124,684 $132,551 $141,017 $149,826 $159,130 $168,928 $179,063
No $111,867 $121,123 $130,753 $140,775 $151,164 $161,953 $173,058

95

Yes $97,069 $104,157 $112,053 $120,687 $130,029 $140,053 $150,664
No $83,187 $91,847 $101,417 $111,722 $122,459 $133,724 $145,442

100

Yes $81,819 $87,657 $94,555 $102,755 $112,079 $122,362 $133,432
No $66,435 $74,020 $82,831 $93,077 $104,680 $116,712 $128,983

The following scenarios are for a single person with a retirement super balance of $2 million.

Single: Retiring at 60

Money lasting until age

Eligible for Age Pension?

Return on savings

2%

3%

4%

5%

6%

7%

8%

85

Yes $69,093 $75,964 $83,996 $93,023 $103,051 $113,852 $125,419
No $61,976 $70,058 $79,224 $89,284 $100,157 $111,738 $123,812

90

Yes $57,303 $63,421 $70,950 $79,945 $90,261 $101,755 $114,066
No $49,552 $56,672 $65,562 $75,965 $87,441 $99,764 $112,686

95

Yes $49,732 $54,637 $61,162 $69,869 $80,617 $92,784 $105,973
No $41,113 $47,301 $55,091 $65,238 $77,599 $90,951 $104,820

100

Yes $44,566 $48,683 $54,031 $61,552 $72,277 $85,719 $99,959
No $35,108 $40,467 $47,264 $56,030 $68,165 $83,818 $98,953

Single: Retiring at 65

Money lasting until age

Eligible for Age Pension?

Return on savings

2%

3%

4%

5%

6%

7%

8%

85

Yes $86,461 $93,873 $102,056 $111,006 $120,704 $131,044 $141,957
No $80,254 $88,550 $97,561 $107,268 $117,649 $128,564 $139,992

90

Yes $68,770 $75,362 $83,150 $92,123 $102,056 $112,915 $124,539
No $61,699 $69,313 $78,202 $88,203 $99,066 $110,654 $122,833

95

Yes $57,575 $63,000 $69,957 $78,603 $88,869 $100,434 $112,852
No $49,574 $56,114 $64,184 $74,035 $85,718 $98,290 $111,350

100

Yes $50,102 $54,597 $60,352 $67,985 $78,140 $90,806 $104,370
No $41,308 $46,878 $53,782 $62,492 $73,911 $88,345 $103,158

Single: Retiring at 66

Money lasting until age

Eligible for Age Pension?

Return on savings

2%

3%

4%

5%

6%

7%

8%

85

Yes $91,076 $98,463 $106,651 $115,564 $125,177 $135,373 $146,171
No $84,957 $93,272 $102,255 $111,901 $122,141 $132,909 $144,159

90

Yes $71,669 $78,351 $86,160 $95,058 $104,859 $115,648 $127,108
No $64,786 $72,404 $81,249 $91,156 $101,899 $113,250 $125,323

95

Yes $59,520 $65,088 $72,018 $80,637 $90,828 $102,217 $114,454
No $51,632 $58,269 $66,351 $76,150 $87,600 $99,969 $112,904

100

Yes $51,159 $56,047 $61,853 $69,409 $79,449 $91,900 $105,437
No $42,809 $48,399 $55,294 $63,985 $75,227 $89,416 $104,070

Single: Retiring at 67

Money lasting until age

Eligible for Age Pension?

Return on savings

2%

3%

4%

5%

6%

7%

8%

85

Yes $96,151 $103,705 $111,986 $120,936 $130,463 $140,581 $151,288
No $90,309 $98,650 $107,637 $117,163 $127,360 $138,044 $149,182

90

Yes $74,793 $81,683 $89,648 $98,527 $108,343 $118,959 $130,256
No $68,065 $75,839 $84,769 $94,652 $105,274 $116,561 $128,451

95

Yes $61,499 $67,222 $74,291 $83,051 $93,210 $104,532 $116,561
No $53,789 $60,523 $68,740 $78,633 $90,004 $102,255 $115,052

100

Yes $52,774 $57,464 $63,424 $71,061 $81,222 $93,553 $106,957
No $43,964 $50,004 $56,971 $65,708 $76,976 $91,007 $105,519

Single: Retiring at 68

Money lasting until age

Eligible for Age Pension?

Return on savings

2%

3%

4%

5%

6%

7%

8%

85

Yes $101,843 $109,535 $117,849 $126,757 $136,292 $146,321 $156,852
No $96,190 $104,559 $113,551 $123,136 $133,228 $143,751 $154,728

90

Yes $78,233 $85,257 $93,326 $102,252 $112,033 $122,562 $133,736
No $71,617 $79,577 $88,569 $98,351 $108,971 $120,136 $131,840

95

Yes $63,643 $69,599 $76,841 $85,652 $95,754 $106,949 $118,959
No $56,107 $62,996 $71,323 $81,284 $92,546 $104,653 $117,326

100

Yes $54,227 $59,028 $65,083 $72,874 $83,024 $95,284 $108,551
No $45,921 $51,716 $58,752 $67,520 $78,824 $92,681 $107,061

Single: Retiring at 70

Money lasting until age

Eligible for Age Pension?

Return on savings

2%

3%

4%

5%

6%

7%

8%

85

Yes $115,357 $123,305 $131,745 $140,629 $149,971 $159,920 $170,322
No $110,052 $118,556 $127,585 $137,053 $146,962 $157,276 $168,037

90

Yes $86,273 $93,572 $101,661 $110,654 $120,361 $130,723 $141,646
No $79,953 $88,146 $97,150 $106,876 $117,276 $128,247 $139,653

95

Yes $68,542 $74,852 $82,454 $91,293 $101,334 $112,348 $124,086
No $61,345 $68,506 $77,069 $87,064 $98,050 $109,950 $122,333

100

Yes $57,480 $62,517 $68,778 $76,783 $86,950 $98,952 $111,995
No $49,539 $55,477 $62,618 $71,490 $82,799 $96,246 $110,353

Single: Retiring at 75

Money lasting until age

Eligible for Age Pension?

Return on savings

2%

3%

4%

5%

6%

7%

8%

85

Yes $170,777 $179,043 $187,619 $196,491 $205,768 $215,353 $225,070
No $166,327 $174,955 $183,956 $193,165 $202,752 $212,598 $222,554

90

Yes $115,056 $122,915 $131,320 $140,151 $149,557 $159,453 $169,814
No $109,716 $118,066 $127,054 $136,519 $146,441 $156,782 $167,500

95

Yes $85,744 $92,763 $100,718 $109,553 $119,234 $129,654 $140,753
No $79,305 $87,023 $95,820 $105,506 $115,938 $127,038 $138,656

100

Yes $68,483 $74,031 $80,759 $88,921 $98,651 $109,948 $122,284
No $61,283 $67,569 $74,973 $83,878 $94,607 $106,930 $120,173

Assumptions

  • You own your own home and have personal assets of $25,000 or less.
  • These calculations do not allow any investment assets outside super. Note that the amount of investment assets you have can greatly affect the amount of Age Pension you are eligible for.
  • Inflation costs are a 2% rise per year in cost of living plus an 1.2% additional rise per year in living standards
  • All returns are net of fees
  • Results are in today’s dollars
  • We recommend you also review the assumptions that MoneySmart list below their calculator
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Learn more about how much super is enough in the following SuperGuide articles:

How to use the MoneySmart Retirement Planner

January 21, 2021

Super to income Reckoner

February 18, 2020

Income from super Reckoner

February 18, 2020

Is $500,000 in super enough to retire on?

February 11, 2020

Is $750,000 in super enough to retire on?

February 11, 2020

Is $1 million in super enough to retire on?

February 11, 2020

Is $1.6 million in super enough to retire on?

February 11, 2020

Is $3.2 million in super enough for a couple to retire on?

February 11, 2020

How much super do I need to retire on $40,000 a year?

February 11, 2020

How much super do I need to retire on $60,000 a year?

February 11, 2020

How much super do I need to retire on $80,000 a year?

February 11, 2020

How much super do I need to retire on $100,000 a year?

February 11, 2020

How much super do I need to retire?

February 11, 2020

How accurate are ‘retirement estimates’? 7 assumptions you need to understand

November 21, 2019

Falling behind with your super? How your super balance compares

October 2, 2019

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