Retiring earlier usually means your money must last longer. Start with an income goal, then estimate a target portfolio using a withdrawal rate.
Use the Retirement CalculatorPick a yearly spending target (e.g. $40k, $60k, $80k). Then choose a withdrawal rate (e.g. 3–4%).
| Target portfolio | Monthly investment needed (7% return, 25 years) |
|---|---|
| $500,000 | ~$617/month |
| $750,000 | ~$926/month |
| $1,000,000 | ~$1,234/month |
| $1,500,000 | ~$1,852/month |
| $2,000,000 | ~$2,469/month |
Retiring at 60 is a realistic goal for many Australians — it gives you an extra five years compared to retiring at 55, which significantly reduces the monthly savings required. Using the 4% rule, spending $60,000 a year in retirement still requires around $1,500,000 in savings, but starting from age 35 with 25 years to invest, you only need around $926 per month at 7% returns — compared to $1,440 per month for a 55 retirement. At 60 you're also closer to accessing superannuation, which can form a major part of your retirement portfolio. Use the retirement calculator above to model your own specific scenario.
Run one conservative plan (lower returns, 3% withdrawal) and one mid plan (mid returns, 4% withdrawal). Compare the targets and decide what’s realistic.
For Australians born after 1964, age 60 is when superannuation becomes fully accessible — and super in pension phase is completely tax-free. This makes retiring at 60 significantly more achievable than retiring at 55, because you can draw on your entire superannuation balance immediately. If your super balance at 60 is $800,000 and you need $1,500,000 total to support $60,000 a year spending, your personal investment portfolio only needs to cover $700,000 of that target. At 60 you're also 7 years from the Age Pension eligibility age (67), meaning pension entitlements will start supplementing your income relatively soon. Tools like Sharesight make it easy to track your combined super and personal investment portfolio performance against your retirement target.
It can be, but it usually requires either higher savings, lower spending, or both.
3% is more conservative. 4% is a common rule of thumb. Use the calculator to compare.
No. If you have guaranteed income later, you can subtract that from what your portfolio needs to provide.
Try lowering spending, retiring later, or increasing contributions. Small changes can help a lot.
See /how-compound-interest-works.html.