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

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

February 11, 2020 by Barbara Drury 1 Comment

Reading time: 3 minutes

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% 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.


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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 $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?

Return on savings

2%

3%

4%

5%

6%

7%

8%

85

Yes $52,063 $54,539 $57,163 $59,957 $62,928 $66,042 $69,271
No $24,348 $27,647 $31,258 $35,173 $39,372 $43,761 $48,341

90

Yes $49,156 $51,452 $53,943 $56,614 $59,452 $62,451 $65,638
No $20,061 $23,108 $26,704 $30,723 $34,993 $39,562 $44,361

95

Yes $47,102 $49,156 $51,538 $54,107 $56,841 $59,751 $62,840
No $17,082 $19,838 $23,260 $27,389 $31,876 $36,624 $41,633

100

Yes $45,532 $47,396 $49,547 $52,023 $54,760 $57,573 $60,557
No $14,923 $17,410 $20,544 $24,519 $29,476 $34,491 $39,621

Couple: Retiring at 65

Money lasting until age

Eligible for Age Pension?

Return on savings

2%

3%

4%

5%

6%

7%

8%

85

Yes $61,962 $64,598 $67,351 $70,258 $73,281 $76,470 $79,753
No $31,009 $34,426 $38,054 $41,867 $45,927 $50,148 $54,540

90

Yes $55,835 $58,284 $60,921 $63,705 $66,651 $69,761 $73,034
No $24,500 $27,640 $31,277 $35,178 $39,372 $43,761 $48,341

95

Yes $51,726 $54,073 $56,592 $59,255 $62,073 $65,139 $68,352
No $20,256 $23,146 $26,590 $30,601 $34,975 $39,562 $44,361

100

Yes $48,993 $50,845 $53,257 $55,945 $58,745 $61,734 $64,851
No $17,324 $19,902 $23,060 $26,955 $31,678 $36,599 $41,633

Couple: Retiring at 66

Money lasting until age

Eligible for Age Pension?

Return on savings

2%

3%

4%

5%

6%

7%

8%

85

Yes $63,817 $66,461 $69,271 $72,176 $75,322 $78,536 $81,869
No $32,785 $36,166 $39,814 $43,637 $47,644 $51,821 $56,169

90

Yes $57,012 $59,516 $62,167 $64,977 $67,977 $71,136 $74,436
No $25,613 $28,820 $32,407 $36,339 $40,462 $44,771 $49,366

95

Yes $52,538 $54,915 $57,455 $60,162 $63,051 $66,128 $69,366
No $21,024 $23,938 $27,371 $31,327 $35,703 $40,270 $45,056

100

Yes $49,492 $51,464 $53,917 $56,635 $59,478 $62,451 $65,151
No $17,908 $20,487 $23,644 $27,509 $32,178 $37,106 $42,110

Couple: Retiring at 67

Money lasting until age

Eligible for Age Pension?

Return on savings

2%

3%

4%

5%

6%

7%

8%

85

Yes $65,630 $68,330 $71,166 $74,141 $77,239 $80,464 $83,825
No $34,671 $38,078 $41,752 $45,561 $49,543 $53,673 $57,976

90

Yes $58,126 $60,652 $63,351 $66,211 $69,212 $72,374 $75,681
No $26,801 $30,020 $33,653 $37,553 $41,661 $45,963 $50,257

95

Yes $53,306 $55,692 $58,252 $61,008 $63,914 $66,966 $70,254
No $21,830 $24,778 $28,256 $32,242 $36,562 $41,062 $45,782

100

Yes $49,993 $52,054 $54,497 $57,259 $60,107 $63,083 $66,323
No $18,486 $21,093 $24,285 $28,159 $32,821 $37,688 $42,623

Couple: Retiring at 68

Money lasting until age

Eligible for Age Pension?

Return on savings

2%

3%

4%

5%

6%

7%

8%

85

Yes $67,629 $70,376 $73,253 $76,251 $79,375 $82,614 $85,973
No $36,844 $40,291 $43,912 $47,676 $51,645 $55,759 $60,024

90

Yes $59,342 $61,932 $64,643 $67,521 $70,550 $73,718 $77,049
No $28,088 $31,373 $35,001 $38,867 $42,956 $47,246 $51,713

95

Yes $54,131 $56,557 $59,143 $61,902 $64,828 $67,882 $71,166
No $22,681 $25,680 $29,178 $33,166 $37,434 $41,867 $46,571

100

Yes $50,546 $52,676 $55,149 $57,882 $60,769 $63,816 $67,022
No $19,100 $21,752 $24,963 $28,847 $33,475 $38,278 $43,161

Couple: Retiring at 70

Money lasting until age

Eligible for Age Pension?

Return on savings

2%

3%

4%

5%

6%

7%

8%

85

Yes $72,460 $75,307 $78,224 $81,269 $84,439 $87,678 $91,063
No $41,954 $45,421 $49,033 $52,790 $56,674 $60,684 $64,852

90

Yes $62,167 $64,816 $67,594 $70,518 $73,565 $76,754 $80,126
No $31,060 $34,428 $38,054 $41,867 $45,927 $50,148 $54,540

95

Yes $55,945 $58,446 $61,062 $63,872 $66,852 $69,980 $73,265
No $24,610 $27,665 $31,238 $35,209 $39,372 $43,761 $48,341

100

Yes $51,837 $54,034 $56,549 $59,313 $62,234 $65,310 $68,546
No $20,474 $23,172 $26,433 $30,329 $34,904 $39,567 $44,361

Couple: Retiring at 75

Money lasting until age

Eligible for Age Pension?

Return on savings

2%

3%

4%

5%

6%

7%

8%

85

Yes $92,533 $95,556 $98,638 $101,760 $104,980 $108,320 $111,712
No $62,915 $66,367 $69,980 $73,651 $77,355 $81,254 $85,153

90

Yes $72,460 $75,307 $78,224 $81,269 $84,439 $87,678 $91,063
No $41,954 $45,421 $49,033 $52,790 $56,674 $60,684 $64,852

95

Yes $62,167 $64,816 $67,594 $70,518 $73,565 $76,754 $80,126
No $31,185 $34,442 $38,037 $41,872 $45,927 $50,148 $54,540

100

Yes $55,920 $58,326 $60,989 $63,862 $66,852 $69,980 $73,265
No $24,908 $27,758 $31,048 $34,895 $39,254 $43,768 $48,341

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?

Return on savings

2%

3%

4%

5%

6%

7%

8%

85

Yes $40,564 $42,759 $45,165 $47,738 $50,457 $53,464 $56,717
No $24,337 $27,657 $31,308 $35,183 $39,362 $43,752 $48,358

90

Yes $36,851 $38,831 $40,955 $43,361 $45,951 $48,773 $52,000
No $20,061 $23,108 $26,701 $30,725 $35,000 $39,558 $44,322

95

Yes $34,223 $36,040 $38,021 $40,205 $42,648 $45,420 $48,542
No $17,081 $19,833 $23,260 $27,389 $31,876 $36,625 $41,631

100

Yes $32,114 $33,768 $35,693 $37,806 $40,139 $42,759 $45,857
No $14,921 $17,406 $20,544 $24,518 $29,486 $34,489 $39,663

Single: Retiring at 65

Money lasting until age

Eligible for Age Pension?

Return on savings

2%

3%

4%

5%

6%

7%

8%

85

Yes $46,744 $49,127 $51,637 $54,332 $57,260 $60,285 $63,568
No $31,018 $34,426 $38,054 $41,894 $45,887 $50,148 $54,538

90

Yes $40,808 $42,880 $45,255 $47,783 $50,457 $53,464 $56,717
No $24,496 $27,681 $31,277 $35,187 $39,362 $43,752 $48,358

95

Yes $36,892 $38,903 $41,027 $43,361 $45,951 $48,773 $52,000
No $20,259 $23,134 $26,593 $30,600 $34,994 $39,558 $44,322

100

Yes $34,136 $35,895 $37,938 $40,181 $42,648 $45,420 $48,542
No $17,333 $19,903 $23,061 $26,954 $31,676 $36,621 $41,631

Single: Retiring at 66

Money lasting until age

Eligible for Age Pension?

Return on savings

2%

3%

4%

5%

6%

7%

8%

85

Yes $48,322 $50,750 $53,302 $56,062 $58,967 $62,042 $65,324
No $32,787 $36,173 $39,814 $43,636 $47,644 $51,781 $56,147

90

Yes $41,797 $43,955 $46,334 $48,864 $51,660 $54,630 $57,859
No $25,616 $28,820 $32,400 $36,340 $40,475 $44,833 $49,376

95

Yes $37,588 $39,603 $41,744 $44,082 $46,759 $49,653 $52,846
No $21,037 $23,936 $27,377 $31,370 $35,749 $40,264 $45,060

100

Yes $34,636 $36,408 $38,457 $40,768 $43,255 $46,018 $49,164
No $17,904 $20,490 $23,630 $27,510 $32,190 $37,134 $42,098

Single: Retiring at 67

Money lasting until age

Eligible for Age Pension?

Return on savings

2%

3%

4%

5%

6%

7%

8%

85

Yes $50,096 $52,545 $55,178 $57,932 $60,880 $64,022 $67,266
No $34,678 $38,130 $41,753 $45,557 $49,543 $53,675 $57,975

90

Yes $42,865 $45,075 $47,450 $50,051 $52,863 $55,870 $59,140
No $26,801 $30,036 $33,652 $37,551 $41,663 $45,978 $50,458

95

Yes $38,309 $40,335 $42,531 $44,954 $47,571 $50,457 $53,703
No $21,827 $24,768 $28,222 $32,243 $36,545 $41,061 $45,767

100

Yes $35,102 $36,935 $39,063 $41,361 $43,857 $46,683 $49,815
No $18,489 $21,105 $24,285 $28,160 $32,821 $37,692 $42,604

Single: Retiring at 68

Money lasting until age

Eligible for Age Pension?

Return on savings

2%

3%

4%

5%

6%

7%

8%

85

Yes $52,051 $54,577 $57,241 $60,024 $62,966 $66,138 $69,461
No $36,836 $40,264 $43,911 $47,701 $51,653 $55,750 $60,025

90

Yes $44,037 $46,278 $48,738 $51,399 $54,156 $57,258 $60,470
No $28,052 $31,351 $35,001 $38,868 $42,956 $47,247 $51,722

95

Yes $39,061 $41,075 $43,361 $45,836 $48,505 $51,428 $54,629
No $22,688 $25,680 $29,172 $33,166 $37,437 $41,885 $46,579

100

Yes $35,624 $37,508 $39,665 $41,995 $44,520 $47,353 $50,526
No $19,103 $21,747 $24,963 $28,837 $33,471 $38,232 $43,151

Single: Retiring at 70

Money lasting until age

Eligible for Age Pension?

Return on savings

2%

3%

4%

5%

6%

7%

8%

85

Yes $56,757 $59,358 $62,154 $65,044 $68,100 $71,234 $74,543
No $41,956 $45,422 $49,033 $52,773 $56,691 $60,682 $64,891

90

Yes $46,744 $49,127 $51,637 $54,332 $57,260 $60,285 $63,568
No $31,056 $34,429 $38,054 $41,894 $45,887 $50,148 $54,538

95

Yes $40,808 $42,880 $45,255 $47,783 $50,457 $53,464 $56,717
No $24,618 $27,699 $31,232 $35,208 $39,362 $43,752 $48,358

100

Yes $36,794 $38,783 $41,003 $43,361 $45,951 $48,773 $52,000
No $20,474 $23,190 $26,425 $30,330 $34,905 $39,569 $44,322

Single: Retiring at 75

Money lasting until age

Eligible for Age Pension?

Return on savings

2%

3%

4%

5%

6%

7%

8%

85

Yes $76,618 $79,543 $82,535 $85,564 $88,712 $91,954 $95,336
No $62,907 $66,401 $69,973 $73,651 $77,410 $81,253 $85,174

90

Yes $56,757 $59,358 $62,154 $65,044 $68,100 $71,234 $74,543
No $41,956 $45,422 $49,033 $52,773 $56,691 $60,682 $64,891

95

Yes $46,744 $49,127 $51,637 $54,332 $57,260 $60,285 $63,568
No $31,188 $34,440 $38,036 $41,893 $45,887 $50,148 $54,538

100

Yes $40,737 $42,883 $45,268 $47,783 $50,457 $53,464 $56,717
No $24,905 $27,735 $31,065 $34,902 $39,254 $43,772 $48,358

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 $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

Related topics

How much super do I need? Plan your retirement

IMPORTANT: All information on SuperGuide is general in nature only and does not take into account your personal objectives, financial situation or needs. You should consider whether any information on SuperGuide is appropriate to you before acting on it. If SuperGuide refers to a financial product you should obtain the relevant product disclosure statement (PDS) or seek personal financial advice before making any investment decisions. Comments provided by readers that may include information relating to tax, superannuation or other rules cannot be relied upon as advice. SuperGuide does not verify the information provided within comments from readers. Learn more

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Reader Interactions

Comments

  1. Kerri says

    October 11, 2019 at 2:12 pm

    My husband and I having a smsf for the last 16 years and now 70 years of age are living off the earnings from our balance of $800,000 last financial year we achieved 13.1% and are happy about that we do not receive a Centerlink pension and hope to continue doing this for the next 10 years if we are fortunate to live that long
    We travel overseas and buy what we want enjoying the proceeds of our hard work
    I can’t see that we will need this amt after 80 years of age
    As our spending on travel etc will drop off
    Thank you for a great site I recommended it to our accountant cheers k moore

    Reply

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