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.
For Australians, $60,000 a year sits comfortably above the ASFA "comfortable" retirement standard (around $51,000 for a single person in 2024), providing genuine lifestyle flexibility. With a paid-off home, $60,000 a year covers most Australians' retirement needs well. Importantly, the $1,500,000 target assumes your investment portfolio carries the full load — in practice, most Australians will supplement this with superannuation. If your super balance at retirement is, say, $600,000, your investment portfolio only needs to cover the remaining gap. The Age Pension (currently around $28,000 a year for singles) can also reduce how much your portfolio needs to generate, particularly in later retirement years. Use Sharesight to track how your portfolio is tracking toward this target over time.
Reaching a $1,500,000 target is mostly a growth-phase problem — but once you're within a few years of retiring, protecting that balance matters just as much as growing it. Many investors gradually shift part of their portfolio from shares into bonds as retirement nears, trading some upside for more stability and predictable income. See our ETF vs Bonds comparison for how that trade-off works and when it makes sense to start.
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.