There are 2 key factors that will play a major role in working out how much super you'll need to retire at 65: how long you want your super to last, and the amount of super you intend to withdraw each year as your income.
Let's assume that you want your super to last until you are 90, here are some indications of how much you will need:
| Desired income per year | Estimated super balance you’ll need at age 65 |
| $36,000 | $200,000 |
| $51,000 | $500,000 |
| $59,000 | $750,000 |
| $68,000 | $1,000,000 |
| $110,000 | $2,000,000 |
This is an indication not an iron clad guarantee! The data was sourced from our super calculator, and you can find numbers that are more relevant to you by adding your own information into the calculator. Figures estimated as of data to 30 June 2024.
How much money you'll need to retire at 65 will depend on whether your money is in tax-free super or whether it's in a bank account or investments etc, where your income from those sources, such as interest and dividends are likely to be taxed. It's handy to remember that retirement income might not just come from super. In fact, you may be eligible to combine super with the Government Age Pension.
Yes, once you turn 65 there are no restrictions on working while drawing a super income stream. You can also withdraw all your super and invest it elsewhere, but by doing so you may lose the benefit of the tax-free status that comes with having a super-based income.
Yes, you can retire at 65 with $300,000, but to enjoy a more comfortable retirement it's important to have other factors in place, such as owning your home outright and ensuring your budget will match your retirement plans and vice versa. Remember, as your super runs down later in life, your age pension amount increases.
Could you be better off sticking with your Industry SuperFund in retirement?
Nick is single, has no debt, rents where he lives and has just turned 70. When he stopped working, his superannuation adviser suggested that he open a super pension account with his Industry SuperFund, and start drawing down on his super gradually. By doing that, he would also be eligible for the Government Age Pension as a top-up.
This strategy also allowed the balance in Nick's super fund to remain invested and continue to grow until he withdraws it. Here's what that looked like:
Nick’s Industry SuperFund continues to work hard for him in retirement, while at last he gets to put his feet up.
| Closing Balance | $370,453 | |||
| Account balance invested after income taken |
Income stream payments | Age Pension payments | Total income | |
|---|---|---|---|---|
| 2020/21 | $300,000 | $15,000 | $25,928 | $40,928 |
| 2021/22 | $345,482 | $17,274 | $27,139 | $44,413 |
| 2022/23 | $322,455 | $16,123 | $27,679 | $43,802 |
| 2023/24 | $337,313 | $16,866 | $28,708 | $45,573 |
| 2024/25 | $351,154 | $17,558 | $31,057 | $48,614 |
Nick is not an actual member. His story has been created for illustrative purposes.
Modelled outcomes by SuperRatings show 5-year average net benefit results taking into account historical earnings, fees and drawdown amount of 5% p.a. of the main balanced investment options of 7 Industry SuperFunds retirement income products during the first 5 years of retirement. Example assumes the average 5 year Industry SuperFund investment return of 9.57% p.a., starting balance of $300,000, starting age of 65, home is rented, access to the part Age Pension, single, no other assets or income sources available. Modelling as at 30 June 2025. Performance (Net Benefit) modelling is based on actual reported returns over the stated period. Capital growth will not continue throughout retirement. Past performance is not a reliable indicator of future performance. Returns may fluctuate over time and can vary significantly from year to year. Outcomes vary between individual funds. Consider a fund’s Product Disclosure Statement (PDS) and your personal financial situation, needs or objectives, which are not accounted for in this information, before making an investment decision. For more details about the SuperRatings modelling see the Assumptions page.
Barbara is 70 years old, worked part-time throughout her life, and retired at 65. She lives by herself in a rented unit.
Due to being in and out of the workforce, her super balance at 65 was $50,000 and she knew she would need to rely on the Government Age Pension.
Before retiring, her Industry SuperFund adviser suggested that she gradually draw down on her super as a top up to her Age Pension. That would maximise the amount of Age Pension she would receive and allow her remaining balance to continue to grow in the early years, before she eventually brings her super balance to zero.
Here's what that looked like:
For Barbara, that extra $2,752 comes in handy for the grandkids at Christmas time and to fund a holiday every year.
| Closing Balance | $61,318 | |||
| Account balance invested after income taken |
Income stream payments | Age Pension payments | Total income | |
|---|---|---|---|---|
| 2020/21 | $50,000 | $2,500 | $27,648 | $30,148 |
| 2021/22 | $57,497 | $2,875 | $28,181 | $31,056 |
| 2022/23 | $53,576 | $2,679 | $28,431 | $31,110 |
| 2023/24 | $55,968 | $2,798 | $29,468 | $32,267 |
| 2024/25 | $58,187 | $2,909 | $31,751 | $34,661 |
Barbara is not an actual member. Her story has been created for illustrative purposes.
Modelled outcomes by SuperRatings show 5-year average net benefit results taking into account historical earnings, fees and drawdown amount of 5% p.a. of the main balanced investment options of 7 Industry SuperFunds retirement income products during the first 5 years of retirement. Example assumes the average 5 year Industry SuperFund investment return of 9.57% p.a., starting balance of $50,000, starting age of 65, home is rented, access to the full Age Pension including rent assistance, single, no other assets or income sources available. Modelling as at 30 June 2025. Performance (Net Benefit) modelling is based on actual reported returns over the stated period. Capital growth will not continue throughout retirement. Past performance is not a reliable indicator of future performance. Returns may fluctuate over time and can vary significantly from year to year. Outcomes vary between individual funds. Consider a fund’s Product Disclosure Statement (PDS) and your personal financial situation, needs or objectives, which are not accounted for in this information, before making an investment decision. For more details about the SuperRatings modelling see the Assumptions page.
Retiring at 65 y.o. with $2 million in super will usually mean a pretty comfortable life in retirement. Of course, it won't last as long as it would if you retired at 70, but by using a retirement needs calculator, you can get an estimate of your ideal retirement income and super balance.
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