A common planning method uses a withdrawal rate (like 4%). This page shows how to estimate a target nest egg.
Use the Retirement Calculator| Rule | Portfolio needed |
|---|---|
| 4% withdrawal rule (standard) | ~$1,500,000 |
| 3% withdrawal rule (conservative) | ~$2,000,000 |
| 5% withdrawal rule (aggressive) | ~$1,200,000 |
| Starting age (retiring at 65) | Monthly investment needed at 7% |
|---|---|
| Age 25 (40 years) | ~$571/month |
| Age 30 (35 years) | ~$833/month |
| Age 35 (30 years) | ~$1,230/month |
| Age 40 (25 years) | ~$1,852/month |
| Age 45 (20 years) | ~$2,879/month |
Retiring on $60,000 a year requires a portfolio of around $1,500,000 using the 4% withdrawal rule — a comfortable but achievable target for Australians who invest consistently over their working lives. At $60,000 a year you're living at roughly the median Australian household income, which for most retirees with a paid off home provides a genuinely comfortable lifestyle. Starting at 30 requires around $833 a month over 35 years — very achievable for a dual income household. Waiting until 45 more than triples that to $2,879 a month, which is why starting early makes such a dramatic difference. Use the retirement calculator above to model your own numbers.
If you choose a withdrawal rate, a rough target nest egg is:
Target nest egg = annual income ÷ withdrawal rate
Example: $60,000 ÷ 0.04 = $1,500,000 (before tax/fees).
Use the calculator to see how your current balance and monthly investing might get you there.
Tax, fees, inflation, and spending changes matter. Treat this as a starting point for planning.
The calculator treats it as a simple number. In practice, you’d plan around after-tax spending and how your accounts are taxed.
No. It’s a guideline based on historical data and assumptions. Market conditions can differ.
Earlier retirement usually needs a larger nest egg (or lower spending) because the money must last longer.
If you have guaranteed income sources, you can subtract them from the amount your portfolio must provide.
Use /retire.html with your current investments, monthly contributions, and a realistic return assumption.