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Home / Plan your retirement / How much super do I need?

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

February 11, 2020 by Barbara Drury Leave a Comment

Reading time: 3 minutes

According to the ASFA Retirement Standard, a couple can live a ‘comfortable lifestyle’ with a retirement balance of $640,000 while singles can enjoy the same with $545,000. But these are guidelines only. Depending on your personal circumstances, you might live comfortably on less especially if you are not keen on travel or you intend to continue working well into your 70s.

What if your retirement balance is closer to $500,000? Using MoneySmart’s Retirement Planner we have calculated how much income $500,000 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 $500,000, 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.

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.


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Disclaimer

This article is only intended to give approximate retirement income figures that $500,000 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 $500,000 retirement super balance

First let’s look at various scenarios for a couple with a combined balance of $500,000 on retirement, which they transfer into a super pension account.

Couple: Retiring at 60

Money lasting until age

Eligible for Age Pension?

Return on savings

2%

3%

4%

5%

6%

7%

8%

85

Yes $16,224 $18,425 $20,870 $23,462 $26,251 $29,164 $32,252
No $43,986 $45,367 $46,901 $48,568 $50,390 $52,354 $54,472

90

Yes $13,371 $15,399 $17,804 $20,478 $23,336 $26,369 $29,563
No $42,637 $43,912 $45,393 $47,046 $48,852 $50,855 $52,992

95

Yes $11,389 $13,231 $15,506 $18,252 $21,265 $24,386 $27,755
No $41,678 $42,870 $44,291 $45,934 $47,755 $49,792 $51,971

100

Yes $9,949 $11,607 $13,691 $16,346 $19,656 $22,986 $26,454
No $40,978 $42,087 $43,438 $45,057 $46,940 $48,970 $51,261

Couple: Retiring at 65

Money lasting until age

Eligible for Age Pension?

Return on savings

2%

3%

4%

5%

6%

7%

8%

85

Yes $55,239 $57,267 $59,363 $61,640 $63,961 $66,395 $68,953
No $20,680 $22,950 $25,355 $27,857 $30,618 $33,426 $36,353

90

Yes $51,190 $53,063 $55,160 $57,380 $59,757 $62,224 $64,772
No $16,333 $18,454 $20,856 $23,465 $26,251 $29,164 $32,252

95

Yes $48,582 $50,274 $52,263 $54,495 $56,861 $59,352 $61,946
No $13,501 $15,424 $65,597 $20,403 $23,321 $26,369 $29,563

100

Yes $46,805 $48,331 $50,163 $52,307 $54,723 $57,215 $59,809
No $11,547 $13,267 $15,372 $17,963 $21,113 $24,410 $27,381

Couple: Retiring at 66

Money lasting until age

Eligible for Age Pension?

Return on savings

2%

3%

4%

5%

6%

7%

8%

85

Yes $57,256 $59,363 $61,580 $63,870 $66,259 $68,824 $71,411
No $21,848 $24,124 $26,543 $29,074 $31,756 $34,550 $37,451

90

Yes $52,470 $54,495 $56,659 $58,971 $61,388 $63,925 $66,552
No $17,070 $19,210 $21,608 $24,226 $26,955 $29,885 $32,928

95

Yes $49,594 $51,330 $53,385 $55,667 $58,073 $60,623 $63,262
No $14,011 $15,958 $18,229 $20,914 $23,824 $26,854 $30,042

100

Yes $47,660 $49,194 $51,028 $53,162 $55,631 $58,189 $60,850
No $11,936 $13,658 $15,763 $18,311 $21,454 $24,765 $28,060

Couple: Retiring at 67

Money lasting until age

Eligible for Age Pension?

Return on savings

2%

3%

4%

5%

6%

7%

8%

85

Yes $58,529 $60,647 $62,856 $65,188 $67,567 $70,091 $72,692
No $23,121 $25,378 $27,837 $30,358 $33,026 $35,779 $38,652

90

Yes $53,252 $55,306 $57,470 $59,796 $62,214 $64,751 $67,364
No $17,864 $20,029 $22,436 $25,036 $27,764 $30,616 $33,671

95

Yes $50,095 $51,843 $53,935 $56,243 $58,653 $61,166 $63,844
No $14,545 $16,505 $18,835 $21,495 $24,364 $27,361 $30,524

100

Yes $48,017 $49,583 $51,408 $53,590 $56,089 $58,626 $61,256
No $12,323 $14,070 $16,189 $18,769 $21,875 $25,114 $28,382

Couple: Retiring at 68

Money lasting until age

Eligible for Age Pension?

Return on savings

2%

3%

4%

5%

6%

7%

8%

85

Yes $59,945 $62,067 $64,296 $66,575 $69,034 $71,524 $74,090
No $24,544 $26,854 $29,254 $31,778 $34,436 $37,165 $39,982

90

Yes $54,129 $56,195 $58,371 $60,688 $63,106 $65,634 $68,254
No $18,716 $20,919 $23,331 $25,916 $28,637 $31,494 $34,483

95

Yes $50,592 $52,415 $54,542 $56,850 $59,273 $61,752 $64,456
No $15,121 $17,117 $19,453 $22,112 $24,955 $27,857 $31,057

100

Yes $48,401 $49,977 $51,835 $54,032 $56,534 $59,092 $61,741
No $12,738 $14,502 $16,642 $19,232 $22,315 $25,495 $28,758

Couple: Retiring at 70

Money lasting until age

Eligible for Age Pension?

Return on savings

2%

3%

4%

5%

6%

7%

8%

85

Yes $63,284 $65,358 $67,657 $70,021 $72,415 $74,869 $77,455
No $27,755 $30,268 $32,680 $35,189 $37,792 $40,478 $43,261

90

Yes $56,118 $58,191 $60,415 $62,653 $65,149 $67,657 $70,271
No $20,698 $22,931 $25,355 $27,857 $30,618 $33,426 $36,353

95

Yes $51,840 $53,741 $55,913 $58,191 $60,637 $63,172 $65,802
No $16,410 $18,463 $20,834 $23,436 $26,251 $29,164 $32,252

100

Yes $49,256 $50,876 $52,764 $55,041 $57,515 $60,073 $62,653
No $13,650 $15,461 $17,624 $20,220 $23,269 $26,380 $29,563

Couple: Retiring at 75

Money lasting until age

Eligible for Age Pension?

Return on savings

2%

3%

4%

5%

6%

7%

8%

85

Yes $77,032 $79,263 $81,540 $83,861 $86,243 $88,661 $91,152
No $41,920 $44,264 $46,653 $49,087 $51,608 $54,158 $56,772

90

Yes $63,284 $65,358 $67,657 $70,021 $72,415 $74,869 $77,455
No $27,970 $30,268 $32,680 $35,189 $37,792 $40,478 $43,261

95

Yes $56,149 $58,196 $60,415 $62,653 $65,149 $67,657 $70,271
No $20,784 $22,963 $25,343 $27,863 $30,618 $33,426 $36,353

100

Yes $52,133 $53,870 $55,868 $58,131 $60,602 $63,170 $65,802
No $16,599 $18,498 $20,706 $23,260 $26,160 $29,182 $32,252

The following scenarios are for a single person with a retirement super balance of $500,000 which they transfer into a super pension account.

Single: Retiring at 60

Money lasting until age

Eligible for Age Pension?

Return on savings

2%

3%

4%

5%

6%

7%

8%

85

Yes $34,559 $36,179 $37,909 $39,747 $41,689 $43,737 $45,854
No $16,224 $18,439 $20,871 $23,474 $26,224 $29,154 $32,251

90

Yes $32,606 $34,079 $35,716 $37,462 $39,323 $41,269 $43,372
No $13,369 $15,405 $17,804 $20,469 $23,336 $26,378 $29,575

95

Yes $31,203 $32,557 $34,078 $35,758 $37,547 $39,452 $41,475
No $11,390 $13,231 $15,485 $18,253 $21,267 $24,402 $27,755

100

Yes $30,159 $31,363 $32,747 $34,365 $36,110 $37,971 $39,954
No $9,944 $11,607 $13,695 $16,346 $19,654 $22,966 $26,451

Single: Retiring at 65

Money lasting until age

Eligible for Age Pension?

Return on savings

2%

3%

4%

5%

6%

7%

8%

85

Yes $40,953 $42,657 $44,466 $46,359 $48,408 $50,503 $52,693
No $20,660 $22,951 $25,368 $27,892 $30,584 $33,427 $36,358

90

Yes $36,895 $38,450 $40,175 $42,036 $43,961 $45,980 $48,168
No $16,327 $18,449 $20,856 $23,473 $26,224 $29,154 $32,251

95

Yes $34,162 $35,690 $37,327 $39,060 $40,940 $42,929 $45,041
No $13,492 $15,423 $17,728 $20,404 $23,321 $26,378 $29,575

100

Yes $32,311 $33,541 $35,131 $36,886 $38,700 $40,651 $42,657
No $11,549 $13,269 $15,373 $17,968 $21,112 $24,392 $27,755

Single: Retiring at 66

Money lasting until age

Eligible for Age Pension?

Return on savings

2%

3%

4%

5%

6%

7%

8%

85

Yes $42,152 $43,877 $45,754 $47,663 $49,727 $51,848 $54,057
No $21,854 $24,125 $26,543 $29,070 $31,762 $34,551 $37,451

90

Yes $37,630 $39,271 $41,028 $42,867 $44,845 $46,864 $49,051
No $17,068 $19,212 $21,608 $24,194 $26,966 $29,877 $32,928

95

Yes $34,695 $36,243 $37,904 $39,670 $41,553 $43,561 $45,700
No $14,022 $15,959 $18,256 $20,914 $23,830 $26,851 $30,037

100

Yes $32,638 $33,948 $35,561 $37,338 $39,178 $41,139 $43,162
No $11,933 $13,656 $15,754 $18,341 $21,457 $109,398 $28,060

Single: Retiring at 67

Money lasting until age

Eligible for Age Pension?

Return on savings

2%

3%

4%

5%

6%

7%

8%

85

Yes $43,351 $45,138 $46,990 $48,957 $51,007 $53,140 $55,351
No $23,119 $25,420 $27,837 $30,369 $33,025 $35,759 $38,661

90

Yes $38,392 $39,965 $41,774 $43,687 $45,654 $47,738 $49,925
No $17,857 $20,029 $22,436 $25,035 $27,750 $30,658 $33,627

95

Yes $35,181 $36,755 $38,435 $40,224 $42,127 $44,150 $46,288
No $14,555 $16,503 $18,826 $21,493 $24,358 $27,366 $30,520

100

Yes $32,977 $34,350 $35,948 $37,743 $39,594 $41,566 $43,656
No $12,323 $14,060 $16,190 $18,774 $21,872 $25,126 $28,355

Single: Retiring at 68

Money lasting until age

Eligible for Age Pension?

Return on savings

2%

3%

4%

5%

6%

7%

8%

85

Yes $44,705 $46,485 $48,399 $50,355 $52,430 $54,562 $56,791
No $24,548 $26,851 $29,259 $31,762 $34,438 $37,168 $39,965

90

Yes $39,165 $40,869 $42,657 $44,550 $46,550 $48,635 $50,825
No $18,718 $20,904 $23,309 $25,913 $28,636 $31,493 $34,455

95

Yes $35,736 $37,321 $38,955 $40,821 $42,657 $44,764 $46,864
No $15,127 $17,109 $19,458 $22,111 $24,958 $27,892 $31,058

100

Yes $33,346 $34,767 $36,366 $38,169 $40,007 $42,028 $44,131
No $12,732 $14,494 $16,638 $19,232 $22,303 $25,490 $28,735

Single: Retiring at 70

Money lasting until age

Eligible for Age Pension?

Return on savings

2%

3%

4%

5%

6%

7%

8%

85

Yes $47,916 $49,767 $51,705 $53,715 $55,801 $57,950 $60,157
No $27,955 $30,269 $32,688 $35,193 $37,792 $40,481 $43,257

90

Yes $41,058 $42,783 $44,631 $46,550 $48,568 $50,671 $52,880
No $20,698 $22,941 $25,368 $27,892 $30,584 $33,427 $36,358

95

Yes $36,962 $38,555 $40,312 $42,143 $44,087 $46,144 $48,309
No $16,381 $18,461 $20,834 $23,472 $26,224 $29,154 $32,251

100

Yes $34,215 $35,654 $37,321 $39,088 $41,020 $43,027 $45,151
No $13,648 $15,459 $17,626 $20,202 $23,266 $26,379 $29,575

Single: Retiring at 75

Money lasting until age

Eligible for Age Pension?

Return on savings

2%

3%

4%

5%

6%

7%

8%

85

Yes $61,251 $63,249 $65,269 $67,351 $69,514 $71,706 $73,950
No $41,943 $44,269 $46,652 $49,052 $51,607 $54,163 $56,751

90

Yes $47,916 $49,767 $51,705 $53,715 $55,801 $57,950 $60,157
No $27,955 $30,269 $32,688 $35,193 $37,792 $40,481 $43,257

95

Yes $41,058 $42,783 $44,631 $46,550 $48,568 $50,671 $52,880
No $20,795 $22,958 $25,347 $27,896 $30,584 $33,427 $36,358

100

Yes $36,927 $38,509 $40,251 $42,135 $44,087 $46,144 $48,309
No $16,597 $18,502 $20,706 $23,266 $26,154 $29,181 $32,251

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 $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 $2 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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How much super do I need? Plan your retirement

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