Australian Super Planning
Project your super balance, see how long it lasts in retirement, and check if you need a bridge strategy before preservation age.
Your Details
Assumptions
Preservation Age
60
Tax-free access
Super Lasts Until
100+
at $60,000/yr
Bridge Needed
$600,000
10yr gap to super access
Projected Super Balance
Assumes 12% employer SG contributions on your income until age 67.
Age 55
$1,193,183
Age 60
$1,742,510
Age 65
$2,512,969
Age 67
$2,901,938
ASFA Retirement Standard
Annual spending benchmarks for a comfortable vs modest retirement (2025).
Comfortable
Single: $52,085/yr
Couple: $73,337/yr
Modest
Single: $32,666/yr
Couple: $47,387/yr
Your desired spending of $60,000/yr is above the comfortable single standard.
Super Drawdown Projection
How the super planning tool works
This calculator projects your superannuation balance from today through retirement and beyond, helping you answer the fundamental question: will my super last long enough?
You start by entering your current age, super balance, annual employer contributions (including any salary sacrifice), and your target retirement age. The tool then models investment growth on your balance using the return rate you specify, compounding annually until your chosen retirement date.
Once you retire, the model switches from accumulation to drawdown. You enter your expected annual spending in retirement, and the calculator deducts that amount each year while continuing to grow the remaining balance. The key outputs are your projected super balance at retirement, the number of years your super will last at your chosen spending level, and whether you will need a bridge strategy to cover any gap between your retirement date and when you can access super at preservation age (60).
The tool also checks your spending against the ASFA Retirement Standard benchmarks so you can see whether your planned lifestyle falls into the modest or comfortable category. If your super runs out before the Age Pension kicks in at 67, the results will flag the shortfall.
ASFA Retirement Standard benchmarks
The Association of Superannuation Funds of Australia (ASFA) publishes quarterly benchmarks for how much retirees need to spend to maintain either a modest or comfortable lifestyle. These figures assume you own your home outright and are in reasonably good health. The March 2025 quarter figures for retirees aged 67 are:
| Lifestyle | Single | Couple |
|---|---|---|
| Modest | $32,666 | $47,113 |
| Comfortable | $51,630 | $72,663 |
A modest retirement covers basic living expenses and simple leisure activities. A comfortable retirement includes private health insurance, a reasonable car, good clothes, regular dining out, domestic and occasional international travel, and home improvements. If you are renting in retirement rather than owning your home, you should add your expected annual rent to these figures, which can increase the required spending by $15,000 to $25,000 per year depending on your location.
Minimum super drawdown rates by age
Once you convert your super to an account-based pension (also called a retirement income stream), the government requires you to withdraw a minimum percentage of your account balance each financial year. These rates ensure that super is used for retirement income, not indefinite tax-free wealth accumulation. The current minimum drawdown rates are:
| Age | Minimum drawdown rate |
|---|---|
| Under 65 | 4% |
| 65 – 74 | 5% |
| 75 – 79 | 6% |
| 80 – 84 | 7% |
| 85 – 89 | 9% |
| 90 – 94 | 11% |
| 95+ | 14% |
The minimum is calculated as the percentage multiplied by your account balance on 1 July each year. You can always withdraw more than the minimum, and there is no maximum. In your first year of starting a pension partway through the financial year, the minimum is pro-rated based on the number of days remaining. If your actual spending needs exceed the minimum drawdown, that is fine — you simply withdraw what you need. If your spending is less than the minimum, you must still withdraw the required amount, but you can reinvest it outside super.
Worked example: retiring at 55 with $400,000 in super
Consider a 55-year-old with $400,000 in super who wants to retire immediately and spend $50,000 per year. They assume a 6% annual investment return on their super balance.
The first problem is access. Preservation age is 60, so they cannot touch their super for 5 years. During those 5 years they need $250,000 in non-super savings to cover their $50,000 annual spending (ignoring investment returns on the bridge for simplicity). This is the bridge amount.
Meanwhile, their $400,000 in super continues to grow untouched. At 6% annual growth over 5 years, the balance reaches approximately $535,000 by age 60. At that point they can start an account-based pension and begin drawing from super.
Drawing $50,000 per year from a $535,000 balance while earning 6% returns gives roughly 15 years of income, lasting until around age 75. However, from age 67 they become eligible for the Age Pension, which can supplement their income by up to $28,514 per year for a single (subject to means testing). With partial Age Pension support from 67, their super would stretch further — potentially lasting into their mid-80s or beyond. The exact outcome depends on their assets test result, homeownership status, and whether they adjust spending over time.
The bridge strategy: funding retirement before 60
If you want to retire before preservation age (60), you face a gap: your super is locked and you need another source of income. A bridge strategy is simply a plan to fund those gap years using non-super assets.
To size the bridge, multiply your annual spending by the number of years between your target retirement age and 60. Someone retiring at 55 who spends $50,000 per year needs a $250,000 bridge. Someone retiring at 50 with the same spending needs $500,000.
Common bridge vehicles include:
- ETF or share portfolio — provides growth and income via dividends. Franking credits reduce tax on Australian dividends. Capital gains taxed at marginal rate with 50% CGT discount if held over 12 months.
- Offset account or savings — provides certainty and no drawdown risk. Best for short bridges (1-3 years) where market volatility is unacceptable.
- Rental income — an investment property can produce regular income, though it comes with management costs, vacancy risk, and illiquidity.
- Part-time work — even modest employment income ($20,000-$30,000 per year) dramatically reduces the bridge amount needed.
At age 60, you transition from bridge assets to super. This is often the most tax-efficient moment in an Australian retiree's financial life: super withdrawals become tax-free, and you stop depleting your taxable investment portfolio. A well-planned bridge lets you retire years earlier without touching your super prematurely.
Super vs non-super investments for retirement
Super and non-super investments are taxed very differently, and understanding both is essential for retirement planning.
Inside super, investment earnings are taxed at just 15% during accumulation, and 0% once you start a retirement pension after age 60. Withdrawals are also completely tax-free after 60. Concessional contributions (employer and salary sacrifice) are taxed at 15% on the way in, which is significantly less than most people's marginal tax rate. The trade-off is that super is locked until preservation age (60) and annual contribution caps limit how much you can put in.
Outside super, investment returns are taxed at your marginal rate, which can be up to 47% including the Medicare levy. However, there are offsets: Australian shares pay franked dividends that carry tax credits, and capital gains on assets held longer than 12 months receive a 50% CGT discount. Critically, non-super investments are fully accessible at any time, making them essential for early retirement.
The best approach for most people is to use both. Maximise super contributions for their tax advantages, while building a non-super portfolio that provides flexibility and funds your bridge strategy if you plan to retire before 60. The right split depends on your target retirement age, income level, and how much access you need to your money before preservation age.