How much do I need to retire on $60,000 a year?

A common planning method uses a withdrawal rate (like 4%). This page shows how to estimate a target nest egg.

Use the Retirement Calculator

How much do you need to retire on $60,000 a year?

Rule Portfolio needed
4% withdrawal rule (standard) ~$1,500,000
3% withdrawal rule (conservative) ~$2,000,000
5% withdrawal rule (aggressive) ~$1,200,000

Monthly investment needed to reach $1,500,000

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

What retiring on $60,000 a year looks like

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.

The quick estimate (withdrawal rate method)

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).

Try multiple withdrawal rates

Use the calculator to see how your current balance and monthly investing might get you there.

Don’t forget real-world factors

Tax, fees, inflation, and spending changes matter. Treat this as a starting point for planning.

FAQ

Is $60,000/year before or after tax?

The calculator treats it as a simple number. In practice, you’d plan around after-tax spending and how your accounts are taxed.

Is the 4% rule guaranteed?

No. It’s a guideline based on historical data and assumptions. Market conditions can differ.

What if I want to retire earlier?

Earlier retirement usually needs a larger nest egg (or lower spending) because the money must last longer.

Should I include pensions/super/social security?

If you have guaranteed income sources, you can subtract them from the amount your portfolio must provide.

How do I see if I’m on track?

Use /retire.html with your current investments, monthly contributions, and a realistic return assumption.

Related links

Try another calculator