Retirement Calculator Australia 2025-26
Find out when you can retire based on your savings, spending, and investment returns. All figures in real (inflation-adjusted) terms — projects your retirement age, Coast FIRE date, and year-by-year portfolio growth.
Your Details
Assumptions
Retire at
62
Target
$1,500,000
4% rule
Coast FIRE
Age 50
Stop saving, coast to 67
Current progress
3%
of target
Net Worth Projection
Milestones
25%
Age 42
$375,000
50%
Age 51
$750,000
75%
Age 57
$1,125,000
100%
Age 62
$1,500,000
Save More, Retire Earlier
How the retirement calculator works
The core logic rests on a simple principle: if your investment portfolio is large enough, the returns it generates each year can cover your living expenses without depleting the balance. The question is how large "large enough" actually is.
The 4% rule provides the answer. Based on the Trinity Study, which analysed decades of US market returns, withdrawing 4% of your portfolio in the first year of retirement and adjusting for inflation each year afterwards gives you a high probability (roughly 95%) of not running out of money over 30 years. Inverting this, you need 25 times your annual spending in invested assets. This is your retirement target.
The calculator projects your savings forward year by year. Each year, your existing portfolio grows by the expected return rate, and you add new savings (income minus spending minus tax). When the projected portfolio crosses the 25x threshold, you have reached your retirement age. The calculator also finds your Coast FIRE age — the point where your current savings, growing without any further contributions, will reach the target by age 67 through compounding alone.
Inputs you can adjust include your current age, gross annual income, existing invested savings, annual spending, and expected nominal return rate. All projections are shown in real (inflation-adjusted) terms so the numbers reflect today's purchasing power.
Retirement targets by annual spending
The table below shows how much you need in invested assets at different spending levels, using the 25x multiplier (4% safe withdrawal rate). These are total portfolio targets — the sum of super and non-super investments.
| Annual Spending | Retirement Target (25x) | Monthly Drawdown |
|---|---|---|
| $40,000 | $1,000,000 | $3,333 |
| $50,000 | $1,250,000 | $4,167 |
| $60,000 | $1,500,000 | $5,000 |
| $70,000 | $1,750,000 | $5,833 |
| $80,000 | $2,000,000 | $6,667 |
| $100,000 | $2,500,000 | $8,333 |
| $120,000 | $3,000,000 | $10,000 |
These are starting points. Your actual requirement may be lower if you expect Age Pension income after 67, or higher if you want a larger safety margin. Adjust spending in the calculator above to see how each $10,000 change shifts the target and timeline.
How Australian tax settings affect your retirement age
Australian tax rules have a direct impact on how quickly you accumulate wealth and how efficiently you draw it down in retirement. Understanding these effects can shave years off your timeline.
Progressive income tax. Australia taxes personal income at progressive rates. In 2025-26, the first $18,200 is tax-free, income from $18,201 to $45,000 is taxed at 16%, $45,001 to $135,000 at 30%, $135,001 to $190,000 at 37%, and everything above $190,000 at 45%. On top of this, the 2% Medicare levy applies to most taxable income. The marginal rate determines how much of each additional dollar you keep — and therefore how fast extra income converts into savings.
Capital gains tax (CGT) discount. If you hold an investment for more than 12 months before selling, only 50% of the capital gain is added to your taxable income. This makes long-term investing significantly more tax-efficient than short-term trading. For an investor in the 30% marginal bracket, the effective tax rate on a long-term capital gain drops to 15%.
Franking credits. Australian companies pay 25% or 30% corporate tax before distributing dividends. Shareholders receive a franking credit for the tax already paid. If your marginal tax rate is below the corporate rate, you receive a refund of the difference. In early retirement with low taxable income, fully franked dividends can effectively be tax-free or even generate a refund — boosting after-tax returns from Australian equities.
Medicare levy. The 2% Medicare levy applies to most taxable income above the low-income threshold. It is a flat percentage, not progressive, and it adds to your effective tax rate at every income level above the threshold.
Superannuation preservation age. For anyone born after 1 July 1964, the super preservation age is 60. You cannot access your super before then (with very limited exceptions). This means early retirees must have enough non-super assets to bridge the gap between their retirement date and age 60. The retirement calculator helps you model this two-bucket approach.
The two-bucket approach: super and non-super
Australian retirement planning is fundamentally different from countries without a compulsory superannuation system. You effectively have two pools of money growing in parallel: your super fund (tax-advantaged but locked until 60) and your non-super investments (fully accessible but taxed at higher rates).
If you plan to retire before 60, you need enough in your non-super portfolio to cover every year of spending between your retirement date and the day you can access super. For someone retiring at 50, that is 10 years of living expenses — at $60,000 per year, roughly $600,000 in accessible investments, assuming no investment growth during drawdown (or less if you stay invested).
Once you reach 60 and access super, you switch to drawing from the tax-advantaged pool. Withdrawals from a taxed super fund are entirely tax-free after 60, making it the most efficient source of retirement income. The strategy is to deplete the non-super bridge first, then transition to super.
The split between super and non-super depends on your target retirement age. The earlier you want to retire, the larger your bridge portfolio needs to be relative to your super balance. Use the Super Planning tool to model how your super grows and when to start drawing it down.
Worked example: $90,000 salary, $55,000 spending
Consider a 32-year-old earning $90,000 before tax. After income tax (approximately $20,500) and the Medicare levy ($1,800), take-home pay is about $67,700. With annual spending of $55,000, that leaves roughly $12,700 per year in personal savings. Employer super contributions of 12% (SG rate from 1 July 2025) add another $10,800 to the super fund.
The retirement target at $55,000 spending is 25 times $55,000, which equals $1,375,000. Assume this person already has $40,000 in personal investments and $60,000 in super, with a blended real return of 5% after inflation.
Running the numbers, the non-super portfolio — starting at $40,000 and growing by $12,700 plus compounding each year — crosses $400,000 by around age 45. The super balance, starting at $60,000 and receiving $10,350 in contributions plus compounding, reaches roughly $500,000 by age 45 and continues growing to over $900,000 by age 60.
The combined portfolio crosses the $1,375,000 target at approximately age 48. Coast FIRE — the point where existing savings grow to the target by age 67 without further contributions — arrives around age 40. After Coast FIRE, this person could reduce their income to just cover spending, work part-time, or take extended breaks without jeopardising retirement.
The timeline is sensitive to spending. Cutting $5,000 per year from spending reduces the target by $125,000 and simultaneously increases annual savings by $5,000. Together, these compound to shave roughly two to three years off the retirement date. Adjust spending in the calculator above to experiment with these trade-offs instantly.
Common retirement planning mistakes
- Ignoring inflation. A $1 million target sounds large today, but in 20 years it buys significantly less. Always plan in real (inflation-adjusted) terms — this calculator does that automatically.
- Assuming constant returns. Markets do not return 7% every year. Sequence-of-returns risk means poor early returns can derail a plan even if the long-run average holds. Build a buffer above your minimum target.
- Forgetting the super access age. You cannot touch superannuation until preservation age (60 for most people). If you plan to retire at 45, you need 15 years of living expenses in accessible investments before super kicks in.
- Not stress-testing the plan. Run the calculator with lower returns (5% instead of 7%) and higher spending to see how sensitive your timeline is. A plan that only works under optimistic assumptions is not a plan.
- Treating the target as exact. The 25x rule is a guideline, not a guarantee. Health costs, market crashes, and lifestyle changes all create variance. Aim for a range rather than a single number, and revisit your plan annually.
When to use a retirement calculator
A retirement calculator is not something you use once and forget. Certain life events should prompt a re-check to make sure your plan still holds:
- Pay rise or job change. A higher salary means more savings capacity — update your income to see how much earlier you can retire.
- Major expense change. Moving house, having children, or paying off a mortgage all shift your annual spending. Recalculate your 25x target.
- Market drawdown. After a significant market fall, re-run the calculator with your current portfolio balance to see the new timeline. Avoid panic — the compounding years ahead often make up the difference.
- Reaching a milestone. When you hit Coast FIRE or a specific savings target, check whether your assumptions still hold and whether you want to adjust your strategy.
- Annual review. At minimum, revisit once a year with updated balances, spending, and income. Retirement planning is iterative, not a one-time exercise.
- Approaching preservation age. As you get closer to 60, model how super drawdowns interact with your non-super portfolio and potential Age Pension eligibility.