Retiring at 55 often means your money must last longer. Start with an income goal, then test 3% vs 4% withdrawal scenarios.
Use the Retirement CalculatorPick a yearly spending number (e.g. $50k, $70k, $90k). Then choose a withdrawal rate (3–4% is a common scenario range).
| Annual spending in retirement | Portfolio needed (4% rule) |
|---|---|
| $40,000 per year | ~$1,000,000 |
| $60,000 per year | ~$1,500,000 |
| $80,000 per year | ~$2,000,000 |
| $100,000 per year | ~$2,500,000 |
| Target portfolio | Monthly investment needed (7% return, 20 years) |
|---|---|
| $500,000 | ~$960/month |
| $750,000 | ~$1,440/month |
| $1,000,000 | ~$1,920/month |
| $1,500,000 | ~$2,879/month |
| $2,000,000 | ~$3,839/month |
Retiring at 55 in Australia requires a significantly larger nest egg than retiring at 65 — because your money needs to last potentially 30-40 years rather than 20-25. Using the 4% rule as a guide, spending $60,000 a year in retirement means you need around $1,500,000 saved by age 55. Starting from age 35 and investing at 7% returns, that requires around $1,440 per month for 20 years. It's an ambitious but achievable goal for disciplined investors who start early and stay consistent — use the retirement calculator above to model your own specific numbers.
Run a conservative case (3% withdrawal + conservative assumptions) and a mid case (4% withdrawal + mid assumptions). Your plan should work in the conservative case too.
Use both. 3% is conservative. 4% is a common guideline. Compare the range.
Not automatically. If you expect guaranteed income later, subtract it from what your portfolio must provide.
No — it’s a scenario model to help you plan. Real returns vary.
Lower spending, delay retirement, increase contributions, or plan a partial retirement approach.
Choose a conservative plan you can stick with, then increase contributions gradually.