Retirement calculator

Retirement Needs Calculator Q&As

• Is this a calculator for how much I need to retire in Australia?

  Yes it is. The retirement calculator takes you through all the expenses that you're likely to encounter as a retiree in Australia. It then figures out the level of income you'll need to cover these, and estimates how much super you need to achieve that.

• Does the calculator show how much I need to retire at 60?

  Yes. The calculator is set up so that you can choose your preferred retirement age at the outset - whether that's at 60, 70 or something else. If you are thinking of semi retirement at 60, with reduced hours and some income from your super, then try the transition to retirement calculator.

• Does the calculator cover retirement for couples?

  Yes. If you don't know what income you'll need in retirement, the calculator takes you through the likely costs you'll encounter. Here, you can choose whether you're estimating for a single person or a couple. However, if your partner intends to retire a long time before or after you do, then it's a good idea to run the calculator twice to cover both phases of your life.

• Is the calculator designed for super in Australia?

  Yes it is. Australia has a very unique superannuation system, with its own rules, benefits, options and features. That's why the best retirement calculators for Australian retirees are those that are specifically designed around the Australian superannuation system, as well as the domestic costs of living, tax benefits, life-expectancy and way of life.

• How to calculate retirement income?

  There are two popular ways to calculate retirement income. The first is quite generic and suggests withdrawing a percentage - often 4% - of your super and investments in the first year and adjusting for inflation after that. The more tailored way uses calculators to estimate how much super you'll have, and how much you'll need.

  The second option is more sophisticated (but still easy to use) because the calculators take into account things such as limits on super balances and minimum annual withdrawals.

• How do I calculate the retirement savings I'll need?

  To work out how much income and savings you will need to fund your retirement is to use specific retirement calculators. Another option is to use the more generic method of estimating your preferred annual income and working back from there. For example, divide $60,000 p.a by 4% and you'll need $1.5m in savings.

  Naturally, a retirement needs calculator and a super balance calculator require a little bit more input, but they're also designed to take into account the specifics of Australian superannuation, costs of living, life expectancy, the age pension, and tax benefits, and provide a more tailored answer.

• Thinking of moving for retirement?

  Where you choose to live in retirement can make a big difference to your overall expenses. This is primarily because of the cost of buying a new home differs between states. For example, NSW has the highest property prices, followed by Vic and Qld - especially in Sydney, Melbourne and south-eastern Queensland.