Retirement Calculator

What is an Retirement Calculator ?

A retirement calculator helps estimate how much your retirement savings could grow by the time you stop working. It uses your current age, planned retirement age, current savings, regular contributions, and expected annual return.

How Much Do You Need to Retire Comfortably in Australia?

One of the most common questions Australians ask is how much money they actually need to retire. The answer depends on your lifestyle expectations, where you live, whether you own your home, and how long you expect to live in retirement.

The Association of Superannuation Funds of Australia (ASFA) publishes retirement standard benchmarks that are widely referenced in Australia. As of recent estimates, ASFA suggests the following annual income figures for a comfortable retirement:

Comfortable retirement — couple: approximately $72,000 per year Comfortable retirement — single: approximately $51,000 per year Modest retirement — couple: approximately $45,000 per year Modest retirement — single: approximately $31,000 per year

A comfortable retirement is defined as one that allows retirees to have a good standard of living, including occasional travel, leisure activities, and the ability to replace household items and vehicles as needed. A modest retirement covers basic needs with limited extras.

To fund a comfortable retirement for a couple from age 67, ASFA estimates a retirement savings balance of approximately $690,000 is needed, assuming the Age Pension supplements some income. For a single person, approximately $595,000 is the benchmark.

These figures are general guidelines only. Your personal retirement target depends on your specific circumstances, lifestyle goals, whether you will receive the Age Pension, and how long you expect to live in retirement. This calculator helps you model your specific situation.

Understanding Superannuation — Australia's Retirement System

Superannuation — commonly called super — is Australia's compulsory retirement savings system. Understanding how it works is essential for retirement planning.

Compulsory employer contributions In Australia, employers are required to contribute a percentage of your ordinary time earnings to your superannuation fund. This is known as the Superannuation Guarantee (SG). The SG rate has been progressively increasing and is currently set at 11.5% (as of 2024-25), with a further increase scheduled to bring it to 12% from 1 July 2025.

Voluntary contributions In addition to compulsory employer contributions, you can make voluntary contributions to your super to boost your retirement savings. There are two types: concessional contributions (before-tax, such as salary sacrifice) and non-concessional contributions (after-tax). Concessional contributions are taxed at 15% within super, which is lower than most Australians' marginal tax rate — making salary sacrifice a tax-effective way to grow super.

Concessional contribution cap There is an annual cap on concessional contributions. For 2024-25, the concessional contributions cap is $30,000 per year. Contributions above this cap are taxed at your marginal rate.

When can you access your super? Super is preserved until you reach your preservation age, which is currently 60 for most Australians. After age 60, you can access your super tax-free if you have retired or met another condition of release. You can access your super from age 65 regardless of your employment status.

Choosing a super fund Australians have the right to choose which superannuation fund their employer contributions go to. Comparing fund fees, investment options, and insurance offerings can make a meaningful difference to your final retirement balance over decades. Even a small reduction in annual fees compounds into significant savings over a 30 to 40 year working life.

The Australian Age Pension — Will You Be Eligible?

The Age Pension is a government payment available to eligible Australians who have reached pension age and meet income and assets tests. Understanding whether you may be eligible for the Age Pension — and how much you might receive — is an important part of retirement planning.

Age Pension eligibility age The Age Pension eligibility age in Australia is currently 67 for both men and women born on or after 1 January 1957.

Income and assets tests Eligibility for the Age Pension and the amount you receive depends on both your income (including income from investments and super drawdowns) and your assets (including financial assets, investment properties, and some personal assets). The family home is generally exempt from the assets test.

Full vs part pension Some Australians will qualify for a full Age Pension, while others will receive a reduced part pension depending on their income and assets. Many Australians with moderate superannuation balances will receive a part pension that supplements their super drawdown income.

The pension and your retirement planning If you expect to receive some or all of the Age Pension in retirement, factor this into your retirement income planning. A couple receiving the full Age Pension receive approximately $40,000 per year combined, which significantly reduces the amount of super and savings needed to fund a comfortable retirement.

For personalised advice on Age Pension eligibility and entitlements, contact Services Australia or speak with a licensed financial adviser.

Whether you are just starting out or approaching retirement, there are practical steps you can take to improve your retirement outlook.

Make extra concessional contributions through salary sacrifice Salary sacrificing into super reduces your taxable income and contributes more to your retirement savings at the concessional tax rate of 15%. If your marginal tax rate is 32.5% or higher, salary sacrifice is one of the most tax-effective strategies available to you. Always stay within the annual concessional contributions cap.

Use the carry-forward concessional contributions rule If your total super balance is below $500,000, you may be able to carry forward unused concessional contribution cap amounts from the previous five financial years and contribute more than the standard annual cap in a given year. This is particularly useful if you have had gaps in your working life or want to make a catch-up contribution.

Make after-tax contributions Non-concessional (after-tax) contributions can also boost your super balance. The annual non-concessional contributions cap is currently $120,000. Australians under 75 may be able to contribute up to three years of non-concessional caps in a single year using the bring-forward rule, allowing up to $360,000 in a single contribution.

Consolidate multiple super accounts Many Australians have multiple superannuation accounts from different employers. Each account charges its own fees, which erode your balance over time. Consolidating into a single fund reduces duplicate fees and makes your super easier to track. Check your existing super accounts through the ATO's myGov portal.

Choose lower-fee investment options Super fund fees vary significantly. Even a difference of 0.5% in annual fees can amount to tens of thousands of dollars less at retirement on a large super balance over a long period. Compare your fund's fees and investment options against benchmarks and consider switching if your fund is underperforming.

Delay retirement if possible Each extra year of work means one more year of employer contributions and investment growth, plus one fewer year drawing down your retirement savings. Even working part-time for a few extra years can significantly improve your retirement position.

Retirement Income Strategies for Australians

Accumulating a retirement balance is only half of the equation — you also need a strategy for drawing down your savings in a tax-effective way that makes them last throughout retirement.

Account-based pension Most Australians draw down their super in retirement through an account-based pension (also called a super income stream). You transfer some or all of your super balance into an account-based pension and receive regular payments. Withdrawals from an account-based pension are tax-free for Australians aged 60 and over. There is a minimum annual drawdown requirement based on your age and balance.

Lump sum withdrawal You can also withdraw your super as a lump sum at retirement, tax-free after age 60. However, withdrawing a large lump sum and placing it in a bank account means the money is no longer in the tax-advantaged super environment — it may be subject to income tax on earnings and could affect your Age Pension eligibility.

Transition to retirement strategy From age 60, Australians who are still working can access their super through a transition to retirement (TTR) income stream. This allows you to supplement your income while continuing to work, which can enable you to reduce working hours while maintaining your income level.

Diversifying retirement income Many Australians combine multiple income sources in retirement — super drawdowns, Age Pension, investment income from shares or property, and personal savings. Diversifying your retirement income sources can provide greater financial security and flexibility.

Frequently asked questions

How much super do I need to retire in Australia?

ASFA estimates that a comfortable retirement requires approximately $690,000 for a couple and $595,000 for a single person at age 67, assuming some Age Pension eligibility. However, your personal target depends on your lifestyle expectations, whether you own your home outright, your health, and how long you expect to live in retirement. Use this calculator to model your specific situation.

Will I get the Age Pension in retirement?

Eligibility for the Age Pension depends on your age (currently 67), residency history, and whether your income and assets fall within the thresholds set by Services Australia. Many Australians with moderate super balances will qualify for at least a part pension. The government's Services Australia website has a pension estimator tool that can give you an indication of your likely entitlement.

At what age can I access my superannuation in Australia?

Most Australians can access their super from age 60 if they have retired or met another condition of release. From age 65, you can access your super regardless of your employment status. Super accessed after age 60 is generally tax-free.

How much does my employer contribute to my super?

The Superannuation Guarantee (SG) rate is currently 11.5% of your ordinary time earnings (2024-25 financial year), rising to 12% from 1 July 2025. Your employer must contribute this percentage to your nominated super fund on a regular basis. Check your payslips or super fund statements to confirm you are receiving the correct contributions.

What is the difference between concessional and non-concessional super contributions?

Concessional contributions are made from before-tax income — such as employer contributions and salary sacrifice — and are taxed at 15% within super. Non-concessional contributions are made from after-tax income and are not taxed again within super. Both types are subject to annual caps. Concessional contributions are generally the most tax-effective way to boost super for higher-income earners.

Will I get the Age Pension in retirement?

Eligibility for the Age Pension depends on your age (currently 67), residency history, and whether your income and assets fall within the thresholds set by Services Australia. Many Australians with moderate super balances will qualify for at least a part pension. The government's Services Australia website has a pension estimator tool that can give you an indication of your likely entitlement.