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

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A million dollars is often talked about as the gold standard of retirement savings, but it is a suspiciously round number. Depending on your personal circumstances, you might live well on much less, say $750,000, especially if you are not a big traveller or you intend to continue working well into your 70s.

We’ve decided to test run a series of retirement balances that are below $1 million but more than comfortable according to the ASFA Retirement Standard. ASFA estimates a couple can live a ‘comfortable lifestyle’ with a retirement balance of $640,000 while singles can enjoy the same with $545,000.

Using MoneySmart’s Retirement Planner we have calculated how much income $750,000 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 $750,000, 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 $750,000 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 $750,000 retirement super balance

First let’s look at various scenarios for a couple with a combined balance of $750,000 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	$50,730	$53,020	$55,457	$58,157	$60,952	$63,938	$67,044
85	No	$22,168	$25,099	$28,439	$32,151	$36,085	$40,262	$44,663
90	Yes	$47,994	$50,082	$52,367	$54,901	$57,569	$60,380	$63,366
90	No	$18,119	$20,703	$23,859	$27,530	$31,587	$35,913	$40,470
95	Yes	$46,107	$47,952	$50,055	$52,406	$54,980	$57,702	$60,570
95	No	$15,376	$17,694	$20,537	$24,038	$28,261	$32,795	$37,579
100	Yes	$44,729	$46,331	$48,206	$50,347	$52,790	$55,514	$58,295
100	No	$13,428	$15,476	$18,032	$21,246	$25,319	$30,401	$35,459

Couple: Retiring at 65

Money lasting until age	Eligible for Age Pension?	2%	3%	4%	5%	6%	7%	8%
85	Yes	$60,253	$62,476	$65,351	$68,137	$71,022	$74,054	$77,182
85	No	$28,731	$31,848	$35,263	$38,923	$42,757	$46,837	$51,063
90	Yes	$54,287	$56,642	$59,108	$61,682	$64,477	$67,436	$70,529
90	No	$22,438	$25,159	$28,466	$32,082	$36,070	$40,262	$44,663
95	Yes	$50,514	$52,491	$54,874	$57,373	$60,039	$62,857	$65,859
95	No	$18,479	$20,920	$23,856	$27,356	$31,443	$35,883	$40,470
100	Yes	$48,281	$49,782	$51,578	$53,961	$56,641	$59,426	$62,395
100	No	$15,788	$17,936	$20,543	$23,756	$27,697	$32,520	$37,561

Couple: Retiring at 66

Money lasting until age	Eligible for Age Pension?	2%	3%	4%	5%	6%	7%	8%
85	Yes	$62,460	$64,985	$67,653	$70,548	$73,513	$76,612	$79,841
85	No	$30,407	$33,559	$37,030	$40,683	$44,530	$48,554	$52,755
90	Yes	$55,719	$58,109	$60,629	$63,315	$66,153	$69,154	$72,302
90	No	$23,476	$26,340	$29,607	$33,220	$37,166	$41,359	$45,758
95	Yes	$51,392	$53,546	$55,937	$58,474	$61,174	$64,101	$67,161
95	No	$19,185	$21,670	$24,664	$28,192	$32,262	$36,658	$41,220
100	Yes	$48,936	$50,394	$52,367	$54,793	$57,515	$60,376	$63,366
100	No	$16,308	$18,491	$21,137	$24,368	$28,318	$33,120	$38,093

Couple: Retiring at 67

Money lasting until age	Eligible for Age Pension?	2%	3%	4%	5%	6%	7%	8%
85	Yes	$64,255	$66,851	$69,559	$72,451	$75,442	$78,556	$81,756
85	No	$32,294	$35,527	$38,977	$42,633	$46,457	$50,460	$54,573
90	Yes	$56,838	$59,244	$61,777	$64,477	$67,368	$70,402	$73,574
90	No	$24,605	$27,525	$30,791	$34,485	$38,433	$42,546	$46,893
95	Yes	$52,099	$54,307	$56,734	$59,268	$62,063	$64,954	$68,050
95	No	$19,951	$22,496	$25,515	$29,070	$33,129	$37,452	$41,975
100	Yes	$49,387	$50,890	$52,965	$55,392	$58,145	$61,041	$64,056
100	No	$16,868	$19,072	$21,760	$25,012	$28,959	$33,741	$38,646

Couple: Retiring at 68

Money lasting until age	Eligible for Age Pension?	2%	3%	4%	5%	6%	7%	8%
85	Yes	$66,256	$68,924	$71,681	$74,562	$77,563	$80,716	$83,986
85	No	$34,397	$37,674	$41,153	$44,797	$48,605	$52,572	$56,692
90	Yes	$58,045	$60,510	$63,080	$65,829	$68,670	$71,751	$74,943
90	No	$25,864	$28,809	$32,189	$35,799	$39,755	$43,853	$48,149
95	Yes	$52,925	$55,169	$57,609	$60,158	$62,953	$65,875	$69,018
95	No	$20,771	$23,375	$26,431	$29,980	$34,053	$38,338	$42,823
100	Yes	$49,883	$51,492	$53,594	$56,060	$58,791	$61,738	$64,763
100	No	$17,462	$19,717	$22,425	$25,693	$29,640	$34,385	$39,194

Couple: Retiring at 70

Money lasting until age	Eligible for Age Pension?	2%	3%	4%	5%	6%	7%	8%
85	Yes	$71,084	$73,821	$76,641	$79,602	$82,661	$85,830	$89,115
85	No	$39,453	$42,830	$46,310	$49,939	$53,684	$57,626	$61,657
90	Yes	$60,840	$63,358	$66,024	$68,824	$71,751	$74,841	$78,056
90	No	$28,756	$31,853	$35,263	$38,923	$42,757	$46,837	$51,063
95	Yes	$54,738	$57,034	$59,550	$62,207	$64,985	$67,991	$71,084
95	No	$22,646	$25,337	$28,467	$32,078	$36,088	$40,262	$44,663
100	Yes	$51,047	$52,841	$55,006	$57,501	$60,283	$63,242	$66,322
100	No	$18,789	$21,113	$23,866	$27,167	$31,117	$35,782	$40,327

Couple: Retiring at 75

Money lasting until age	Eligible for Age Pension?	2%	3%	4%	5%	6%	7%	8%
85	Yes	$91,127	$94,101	$97,101	$100,155	$103,351	$106,605	$109,941
85	No	$60,493	$63,880	$67,374	$70,964	$74,647	$78,408	$82,256
90	Yes	$71,090	$73,759	$76,646	$79,607	$82,653	$85,835	$89,120
90	No	$39,529	$42,820	$46,310	$49,939	$53,684	$57,626	$61,657
95	Yes	$60,782	$63,366	$66,028	$68,828	$71,757	$74,845	$78,063
95	No	$29,113	$32,011	$35,268	$38,879	$42,774	$46,837	$51,063
100	Yes	$55,191	$57,011	$59,396	$62,031	$64,985	$67,985	$71,131
100	No	$23,157	$25,631	$28,484	$31,795	$35,634	$40,042	$44,690

The following scenarios are for a single person with a retirement super balance of $750,000 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	$39,254	$41,277	$43,519	$45,867	$48,456	$51,232	$54,170
85	No	$22,111	$25,047	$28,410	$32,068	$36,032	$40,161	$44,617
90	Yes	$35,691	$37,472	$39,465	$41,639	$44,006	$46,561	$49,452
90	No	$18,088	$20,699	$23,811	$27,478	$31,537	$35,850	$40,427
95	Yes	$33,158	$34,794	$36,622	$36,795	$40,752	$43,179	$45,957
95	No	$15,353	$17,648	$20,503	$23,996	$28,204	$32,761	$37,500
100	Yes	$31,318	$32,611	$34,232	$36,149	$38,287	$40,606	$43,255
100	No	$13,404	$15,449	$18,002	$21,212	$25,269	$30,350	$35,408

Single: Retiring at 65

Money lasting until age	Eligible for Age Pension?	2%	3%	4%	5%	6%	7%	8%
85	Yes	$45,353	$47,558	$49,948	$52,453	$55,152	$58,066	$61,055
85	No	$28,683	$31,780	$35,151	$38,855	$42,707	$46,751	$50,964
90	Yes	$39,556	$41,488	$43,662	$45,957	$48,510	$51,257	$54,170
90	No	$22,373	$25,197	$28,405	$32,000	$36,027	$40,161	$44,617
95	Yes	$35,813	$37,613	$39,550	$41,654	$44,006	$46,561	$49,452
95	No	$18,434	$20,892	$23,824	$27,319	$31,368	$35,837	$40,427
100	Yes	$33,337	$34,719	$36,430	$38,485	$40,609	$43,179	$45,957
100	No	$15,759	$17,904	$20,513	$23,714	$27,652	$32,473	$37,493

Single: Retiring at 66

Money lasting until age	Eligible for Age Pension?	2%	3%	4%	5%	6%	7%	8%
85	Yes	$46,903	$49,186	$51,595	$54,170	$56,899	$59,826	$62,867
85	No	$30,354	$33,482	$36,966	$40,612	$44,450	$48,464	$52,637
90	Yes	$40,520	$42,543	$44,717	$47,075	$49,581	$52,359	$55,363
90	No	$23,441	$26,284	$29,546	$33,200	$37,151	$41,278	$45,657
95	Yes	$36,453	$38,264	$40,250	$42,410	$44,765	$47,421	$50,309
95	No	$19,155	$21,647	$24,621	$28,143	$32,195	$36,592	$41,151
100	Yes	$33,765	$35,133	$36,932	$39,025	$41,311	$43,783	$46,561
100	No	$16,269	$18,454	$21,103	$24,325	$28,265	$33,062	$38,036

Single: Retiring at 67

Money lasting until age	Eligible for Age Pension?	2%	3%	4%	5%	6%	7%	8%
85	Yes	$48,615	$50,947	$53,435	$56,049	$58,760	$61,748	$64,874
85	No	$32,232	$35,461	$38,915	$42,554	$46,351	$50,355	$54,520
90	Yes	$41,549	$43,627	$45,846	$48,245	$50,789	$53,641	$56,586
90	No	$24,568	$27,487	$30,771	$34,447	$38,364	$42,455	$46,827
95	Yes	$37,144	$38,968	$41,019	$43,179	$45,639	$48,252	$51,151
95	No	$19,916	$22,460	$25,472	$29,019	$33,067	$37,383	$41,907
100	Yes	$34,228	$35,643	$37,473	$39,649	$41,882	$44,451	$47,239
100	No	$16,834	$19,049	$21,725	$24,968	$28,913	$33,679	$38,577

Single: Retiring at 68

Money lasting until age	Eligible for Age Pension?	2%	3%	4%	5%	6%	7%	8%
85	Yes	$50,577	$52,951	$55,454	$58,131	$60,964	$63,863	$67,036
85	No	$34,351	$37,618	$41,083	$44,718	$48,521	$52,480	$56,587
90	Yes	$42,696	$44,810	$47,059	$49,534	$52,162	$54,980	$58,034
90	No	$25,805	$28,784	$32,128	$35,791	$39,678	$43,784	$48,064
95	Yes	$37,884	$39,761	$41,828	$44,055	$46,527	$49,197	$52,117
95	No	$20,737	$23,331	$26,384	$29,948	$33,956	$38,258	$42,576
100	Yes	$34,687	$36,193	$38,087	$40,259	$42,576	$45,125	$47,961
100	No	$17,430	$19,681	$22,385	$25,647	$29,579	$34,305	$39,159

Single: Retiring at 70

Money lasting until age	Eligible for Age Pension?	2%	3%	4%	5%	6%	7%	8%
85	Yes	$55,227	$57,764	$60,342	$63,078	$65,977	$69,034	$72,167
85	No	$39,433	$42,752	$46,227	$49,850	$53,567	$57,523	$61,554
90	Yes	$45,353	$47,558	$49,948	$52,453	$55,152	$58,066	$61,055
90	No	$28,695	$31,793	$35,151	$38,855	$42,707	$46,751	$50,964
95	Yes	$39,521	$41,493	$43,662	$45,957	$48,510	$51,257	$54,170
95	No	$22,601	$25,294	$28,419	$32,023	$36,015	$40,161	$44,617
100	Yes	$35,731	$37,402	$39,406	$41,607	$44,005	$46,561	$49,452
100	No	$18,755	$21,075	$23,833	$27,126	$31,060	$35,712	$40,412

Single: Retiring at 75

Money lasting until age	Eligible for Age Pension?	2%	3%	4%	5%	6%	7%	8%
85	Yes	$74,884	$77,736	$80,620	$83,551	$86,635	$89,771	$93,018
85	No	$60,361	$63,777	$67,261	$69,556	$69,556	$78,264	$82,072
90	Yes	$55,227	$57,764	$60,342	$63,078	$65,977	$69,034	$72,167
90	No	$39,438	$42,731	$46,227	$49,850	$53,567	$57,523	$61,554
95	Yes	$45,353	$47,558	$49,948	$52,453	$55,152	$58,066	$61,055
95	No	$29,055	$31,945	$34,611	$38,810	$42,700	$46,751	$50,964
100	Yes	$39,637	$41,532	$43,641	$45,978	$48,510	$51,257	$54,170
100	No	$23,120	$25,581	$28,434	$31,720	$35,555	$39,975	$44,612

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.