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

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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 2.5% rise in cost of living and an additional 1.5% rise in living standards per year.

Where to go for more

We hope that the figures in the tables below will get you thinking.

For more information on the factors to consider when planning your retirement income needs, refer to the SuperGuide article How much super do I need to retire?

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 more than 13,000 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. The calculator also allows you to enter outside savings and investments.

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?	2%	3%	4%	5%	6%	7%	8%
85	Yes	$43,418	$44,667	$46,054	$47,584	$49,290	$51,127	$53,114
85	No	$14,756	$16,720	$18,974	$21,434	$24,056	$26,852	$29,798
90	Yes	$42,146	$43,286	$44,598	$46,088	$47,755	$49,580	$51,576
90	No	$12,074	$13,822	$15,906	$18,333	$21,040	$23,944	$26,993
95	Yes	$41,287	$42,313	$43,538	$44,977	$46,639	$48,492	$50,550
95	No	$10,252	$11,782	$13,693	$16,014	$18,825	$21,854	$25,054
100	Yes	$40,667	$41,599	$42,738	$44,118	$45,776	$47,688	$49,792
100	No	$8,952	$10,316	$12,020	$14,166	$16,880	$20,268	$23,615

Couple: Retiring at 65

Money lasting until age	Eligible for Age Pension?	2%	3%	4%	5%	6%	7%	8%
85	Yes	$53,174	$55,003	$56,952	$59,060	$61,251	$63,552	$65,941
85	No	$19,127	$21,229	$23,496	$25,949	$28,522	$31,224	$34,050
90	Yes	$49,520	$51,191	$53,080	$55,154	$57,360	$59,651	$62,111
90	No	$14,964	$16,828	$18,957	$21,404	$24,061	$26,852	$29,798
95	Yes	$47,224	$48,698	$50,446	$52,467	$54,676	$57,042	$59,469
95	No	$12,307	$13,951	$15,900	$18,246	$20,951	$23,937	$26,993
100	Yes	$45,659	$46,963	$48,530	$50,397	$52,579	$55,014	$57,496
100	No	$10,523	$11,956	$13,700	$15,838	$18,467	$21,685	$25,029

Couple: Retiring at 66

Money lasting until age	Eligible for Age Pension?	2%	3%	4%	5%	6%	7%	8%
85	Yes	$56,294	$58,335	$60,467	$62,711	$65,054	$67,453	$69,993
85	No	$20,275	$22,387	$24,688	$27,084	$29,682	$32,369	$35,159
90	Yes	$51,721	$53,480	$55,551	$57,757	$60,080	$62,523	$65,060
90	No	$15,649	$17,559	$19,731	$22,173	$24,811	$27,570	$30,492
95	Yes	$49,018	$50,548	$52,300	$54,409	$56,727	$59,150	$61,669
95	No	$12,789	$14,459	$16,440	$18,795	$21,486	$24,445	$27,470
100	Yes	$47,214	$48,545	$50,126	$51,980	$54,101	$56,585	$59,158
100	No	$10,873	$12,321	$14,089	$16,245	$18,878	$22,082	$25,404

Couple: Retiring at 67

Money lasting until age	Eligible for Age Pension?	2%	3%	4%	5%	6%	7%	8%
85	Yes	$57,564	$59,622	$61,760	$64,017	$66,353	$68,793	$71,308
85	No	$21,510	$23,682	$25,991	$28,421	$30,963	$33,638	$36,408
90	Yes	$52,437	$54,298	$56,362	$58,562	$60,915	$63,353	$65,902
90	No	$16,411	$18,353	$20,558	$23,006	$25,620	$28,354	$31,258
95	Yes	$49,502	$51,056	$52,852	$54,985	$57,292	$59,741	$62,259
95	No	$13,300	$15,000	$17,011	$19,381	$22,083	$24,952	$27,991
100	Yes	$47,561	$48,925	$50,521	$52,380	$54,542	$57,055	$59,613
100	No	$11,240	$12,724	$14,507	$16,675	$19,310	$22,491	$25,746

Couple: Retiring at 68

Money lasting until age	Eligible for Age Pension?	2%	3%	4%	5%	6%	7%	8%
85	Yes	$58,998	$61,046	$63,189	$65,451	$67,803	$70,227	$72,752
85	No	$22,924	$25,088	$27,437	$29,851	$32,401	$35,051	$37,790
90	Yes	$53,229	$55,167	$57,258	$59,469	$61,822	$64,255	$66,794
90	No	$17,243	$19,223	$21,441	$23,904	$26,497	$29,242	$32,074
95	Yes	$50,016	$51,608	$53,422	$55,592	$57,932	$60,354	$62,902
95	No	$13,844	$15,581	$17,621	$19,989	$22,698	$25,553	$28,550
100	Yes	$47,939	$49,322	$50,934	$52,809	$55,013	$57,526	$60,085
100	No	$11,638	$13,144	$14,950	$17,128	$19,764	$22,919	$26,141

Couple: Retiring at 70

Money lasting until age	Eligible for Age Pension?	2%	3%	4%	5%	6%	7%	8%
85	Yes	$62,327	$64,431	$66,617	$68,859	$71,173	$73,644	$76,151
85	No	$26,335	$28,547	$30,872	$33,254	$35,794	$38,417	$41,108
90	Yes	$55,174	$57,178	$59,288	$61,536	$63,873	$66,274	$68,848
90	No	$19,164	$21,233	$23,496	$25,949	$28,522	$31,224	$34,050
95	Yes	$51,202	$52,840	$54,783	$56,989	$59,288	$61,752	$64,278
95	No	$15,094	$16,892	$18,959	$21,387	$24,055	$26,852	$29,798
100	Yes	$48,775	$50,195	$51,857	$53,763	$56,031	$58,543	$61,113
100	No	$12,527	$14,067	$15,918	$18,116	$20,743	$23,855	$26,997

Couple: Retiring at 75

Money lasting until age	Eligible for Age Pension?	2%	3%	4%	5%	6%	7%	8%
85	Yes	$76,124	$78,256	$80,530	$82,792	$85,151	$87,556	$89,960
85	No	$40,326	$42,554	$44,922	$47,313	$49,756	$52,269	$54,836
90	Yes	$62,332	$64,434	$66,620	$68,882	$71,179	$73,648	$76,158
90	No	$26,331	$28,558	$30,872	$33,254	$35,794	$38,417	$41,108
95	Yes	$55,446	$57,237	$59,305	$61,539	$63,875	$66,279	$68,851
95	No	$19,403	$21,335	$23,512	$25,907	$28,502	$31,224	$34,050
100	Yes	$51,672	$53,197	$54,949	$56,933	$59,157	$61,682	$64,275
100	No	$15,442	$17,082	$18,988	$21,185	$23,757	$26,698	$29,782

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?	2%	3%	4%	5%	6%	7%	8%
85	Yes	$33,633	$35,216	$36,765	$38,582	$40,415	$42,351	$44,382
85	No	$14,742	$16,700	$18,937	$21,393	$24,016	$26,799	$29,748
90	Yes	$31,865	$33,223	$34,731	$36,353	$38,075	$39,947	$41,878
90	No	$12,057	$13,798	$15,872	$18,321	$21,019	$23,877	$26,951
95	Yes	$30,576	$31,787	$33,143	$34,693	$36,353	$38,075	$39,979
95	No	$10,238	$11,775	$13,669	$15,996	$18,806	$21,831	$24,976
100	Yes	$29,646	$30,687	$31,895	$33,265	$34,866	$36,622	$38,436
100	No	$8,936	$10,297	$11,999	$14,138	$16,849	$20,228	$23,609

Single: Retiring at 65

Money lasting until age	Eligible for Age Pension?	2%	3%	4%	5%	6%	7%	8%
85	Yes	$41,265	$42,956	$44,729	$46,595	$48,535	$50,562	$52,654
85	No	$20,242	$22,324	$24,643	$27,067	$29,633	$32,309	$35,104
90	Yes	$36,765	$38,388	$40,035	$41,791	$43,642	$45,555	$47,675
90	No	$15,625	$17,501	$19,703	$22,117	$24,764	$27,535	$30,451
95	Yes	$33,938	$35,367	$36,912	$38,582	$40,357	$42,243	$44,245
95	No	$12,766	$14,419	$16,410	$18,755	$21,290	$24,384	$27,424
100	Yes	$32,267	$33,227	$34,555	$36,125	$37,893	$39,748	$41,723
100	No	$10,852	$12,305	$14,068	$16,216	$18,840	$22,028	$25,343

Single: Retiring at 66

Money lasting until age	Eligible for Age Pension?	2%	3%	4%	5%	6%	7%	8%
85	Yes	$41,265	$42,956	$44,729	$46,595	$48,535	$50,562	$52,654
85	No	$20,242	$22,324	$24,643	$27,067	$29,633	$32,309	$35,104
90	Yes	$36,765	$38,388	$40,035	$41,791	$43,642	$45,555	$47,675
90	No	$15,625	$17,501	$19,703	$22,117	$24,764	$27,535	$30,451
95	Yes	$33,938	$35,367	$36,912	$38,582	$40,357	$42,243	$44,245
95	No	$12,766	$14,419	$16,410	$18,755	$21,290	$24,384	$27,424
100	Yes	$32,267	$33,227	$34,555	$36,125	$37,893	$39,748	$41,723
100	No	$10,852	$12,305	$14,068	$16,216	$18,840	$22,028	$25,343

Single: Retiring at 67

Money lasting until age	Eligible for Age Pension?	2%	3%	4%	5%	6%	7%	8%
85	Yes	$42,470	$44,160	$45,977	$47,851	$49,827	$51,851	$54,006
85	No	$21,487	$23,642	$25,943	$28,356	$30,892	$33,554	$36,349
90	Yes	$37,568	$39,131	$40,779	$42,554	$44,469	$46,438	$48,516
90	No	$16,382	$18,319	$20,526	$22,940	$25,567	$28,326	$31,214
95	Yes	$34,444	$35,880	$37,460	$39,141	$40,931	$42,830	$44,845
95	No	$13,276	$14,974	$16,956	$19,328	$22,048	$24,936	$27,946
100	Yes	$32,553	$33,582	$34,957	$36,544	$38,317	$40,208	$42,173
100	No	$11,219	$12,692	$14,483	$16,645	$19,263	$22,450	$25,720

Single: Retiring at 68

Money lasting until age	Eligible for Age Pension?	2%	3%	4%	5%	6%	7%	8%
85	Yes	$43,816	$45,534	$47,351	$49,252	$51,241	$53,288	$55,451
85	No	$22,861	$25,060	$27,389	$29,811	$32,348	$34,970	$37,733
90	Yes	$38,360	$39,955	$41,656	$43,452	$45,348	$47,347	$49,431
90	No	$17,213	$19,165	$21,405	$23,863	$26,455	$29,159	$32,054
95	Yes	$34,964	$36,415	$38,009	$39,731	$41,534	$43,450	$45,478
95	No	$13,825	$15,550	$17,575	$19,959	$22,661	$25,483	$28,485
100	Yes	$32,896	$33,964	$35,376	$36,942	$38,715	$40,680	$42,650
100	No	$11,615	$13,118	$14,924	$17,098	$19,708	$22,851	$26,099

Single: Retiring at 70

Money lasting until age	Eligible for Age Pension?	2%	3%	4%	5%	6%	7%	8%
85	Yes	$46,991	$48,793	$50,657	$52,616	$54,619	$56,669	$58,866
85	No	$26,286	$28,504	$30,819	$33,234	$35,745	$38,350	$41,044
90	Yes	$40,188	$41,857	$43,611	$45,443	$47,372	$49,395	$51,509
90	No	$19,138	$21,197	$23,467	$25,900	$28,462	$31,166	$33,976
95	Yes	$36,162	$37,668	$39,317	$41,047	$42,850	$44,839	$46,865
95	No	$15,065	$16,858	$18,935	$21,348	$23,997	$26,799	$29,748
100	Yes	$33,685	$34,880	$36,277	$37,940	$39,761	$41,681	$43,653
100	No	$12,498	$14,050	$15,887	$18,084	$20,707	$23,812	$26,937

Single: Retiring at 75

Money lasting until age	Eligible for Age Pension?	2%	3%	4%	5%	6%	7%	8%
85	Yes	$60,261	$62,244	$64,191	$66,280	$68,378	$70,535	$72,748
85	No	$40,231	$42,517	$44,842	$47,229	$49,654	$52,169	$54,739
90	Yes	$46,991	$48,793	$50,657	$52,616	$54,619	$56,669	$58,866
90	No	$26,314	$28,503	$30,819	$33,234	$35,745	$38,350	$41,044
95	Yes	$40,214	$41,859	$43,611	$45,443	$47,372	$49,395	$51,509
95	No	$19,368	$21,283	$23,470	$25,874	$28,466	$31,166	$33,976
100	Yes	$36,405	$37,641	$39,200	$40,962	$42,867	$44,834	$46,865
100	No	$15,410	$17,052	$18,956	$21,154	$23,714	$26,648	$29,737

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.
Results are in today’s dollars. Inflation costs are a 2.5% rise per year in cost of living, plus a 1.5% additional rise per year in living standards.
You retire after you reach Age Pension age.
All returns are net of fees.
Calculations for couples assume both are same age and super balance is split evenly.
We recommend you also review the assumptions that MoneySmart list below their calculator.
Calculations were made April 2021.