Financial Planner & Adviser in Melbourne

There is no single dollar figure that applies to every Australian, because how much you need depends on your retirement age, lifestyle expectations, housing situation, other assets, and whether you will receive a full or part Age Pension. ASFA's Retirement Standard estimates the super balance needed at age 67 for a comfortable retirement, assuming you own your home, at roughly $730,000 for a couple and $630,000 for a single person (revised by ASFA in February 2026). ASFA updates its annual spending budgets each quarter, but these lump sums change less often. They are benchmarks, not personal targets. Your actual figure could be higher or lower depending on whether you still have a mortgage, whether you plan to travel, and whether a part Age Pension supplements your income. A financial adviser can model your projected retirement income against your expected expenses to estimate the age at which you can comfortably stop working.

How much super you need to retire at 60 depends on the lifestyle you want, your housing situation, other savings, and how long your money needs to last. Retiring at 60 means your super may need to cover 25 to 30 years of living expenses, and you will not yet qualify for the Age Pension (currently age 67). ASFA's comfortable retirement benchmark suggests roughly $730,000 for a couple and $630,000 for a single person, but retiring earlier than 65 typically means needing more, because your money has less time to grow and must last longer. You can access your super from age 60 if you retire from the workforce, and withdrawals are generally tax-free from 60. A financial adviser can model whether your current balance and investment strategy will sustain your target lifestyle from 60 onwards.

How much super you need to retire at 65 depends on your lifestyle, housing costs, other assets, and whether you will receive an Age Pension. At 65, you can access your super regardless of whether you stop working, and withdrawals are tax-free. You will not yet qualify for the Age Pension (currently age 67), so your super may need to bridge a two-year gap before government support begins. ASFA's Retirement Standard suggests roughly $730,000 for a couple and $630,000 for a single person for a comfortable retirement, assuming home ownership. If you own your home outright and live modestly, you may need less. If you still have a mortgage or want to travel extensively, you may need more. A financial adviser can calculate a target specific to your circumstances and model whether you are on track.

Whether you can afford to retire early depends on your super balance, other savings, expected retirement expenses, and how long your money needs to last. In Australia, you can access your super from your preservation age (55 to 60 depending on your date of birth) if you retire from the workforce. From age 60, withdrawals are generally tax-free. Retiring early means your money has less time to grow and must last longer, and you will wait longer for the Age Pension (currently 67). Early retirement is achievable for some Australians with sufficient savings, but it requires careful planning to ensure your money does not run out. A financial adviser can assess whether early retirement is feasible for your circumstances and model the implications for your super, tax, and Age Pension.

How long your superannuation will last in retirement depends on your starting balance, how much you withdraw each year, your investment returns, inflation, fees, and whether you receive an Age Pension that supplements your income. If you withdraw too much, particularly in the early years, your balance may be depleted sooner than expected. A key risk is sequence-of-returns risk: a market downturn early in retirement, when you are drawing income, can reduce your balance faster than the same downturn would if it happened later. A financial adviser can model how long your super is projected to last under different withdrawal rates, return assumptions, and market scenarios, and help you choose a sustainable drawdown strategy for your circumstances.

How much you can safely spend each year in retirement depends on your total savings, investment returns, inflation, how long you live, and whether you receive an Age Pension. A commonly referenced guideline is the 4% to 5% rule, which suggests withdrawing around that percentage of your starting balance each year may be sustainable over a 30-year retirement. However, this is a general rule developed for US markets and does not account for Australian tax rules, Age Pension interactions, or your individual circumstances. In practice, a sustainable withdrawal rate depends on your asset allocation, the sequence of investment returns, and your life expectancy. Drawing too much early in retirement risks depleting your balance; drawing too little may mean living more frugally than necessary. A financial adviser can model a sustainable withdrawal rate for your actual savings and circumstances.

Whether you should pay off your mortgage before retirement depends on your interest rate, your superannuation and investment returns, your tax situation, and your preference for certainty. Paying off a mortgage before retirement provides certainty: it eliminates a regular expense and reduces the income you need to draw from super. However, if your mortgage interest rate is lower than the after-tax return you could earn by investing that money, it may be more efficient to invest rather than pay down the debt. This is a personal decision that depends on your risk tolerance as well as the numbers. Some retirees prefer the peace of mind of being debt-free even if the maths slightly favours investing. A financial adviser can model both scenarios for your actual numbers and help you weigh the financial and personal factors.

How you should structure your finances when you retire depends on your super balance, other assets, debt, Age Pension eligibility, tax position, and retirement goals. A typical retirement income structure involves transferring your super into an account-based pension (which provides tax-free income and tax-free investment earnings from age 60), supplementing with any Age Pension entitlement, and drawing on outside-super investments as needed. The order in which you draw on different sources matters for tax and Age Pension optimisation. You may also need to review your investment allocation, insurance cover, and estate plan. There is no single structure that is right for everyone; the right approach is built around your specific numbers and goals. A financial adviser can help you build a retirement income strategy that is tax-effective, sustainable, and aligned with your circumstances.