Yes, $3 million is generally enough for a comfortable retirement for most people, potentially providing $120,000-$150,000+ annually using the 4% rule, but it depends heavily on your lifestyle, location, healthcare costs, inflation, and investment management. Key factors include your expected spending (e.g., modest vs. lavish), whether you own your home outright, potential healthcare expenses, taxes, and market performance.
Assuming the 4% rule, which means an annual withdrawal of $120,000, and a 3% return, $3 million can comfortably sustain retirees beyond a life expectancy of 90 years. Annual withdrawal of $120,000: Retire at 45: Money lasts until age 82. Retire at 50: Money lasts until age 87.
A modest retirement, as defined by the Association of Superannuation Funds of Australia (ASFA), covers essentials like housing, utilities, food, and basic leisure. For a couple, this might cost around $47,000 annually, which means you'll need less than $3 million.
Only 0.3 per cent have more than $3 million – the balances affected by the government's tax changes, representing 55,000 individuals, up from 35,000 in 2019.
Research shows that less than 1% of households have $3 million or more in retirement savings. While this amount is uncommon, those who consistently invest, save diligently and manage their spending can build significant retirement assets over time.
You'd think hitting the $3 million mark would make someone feel rich. But according to new data, even that kind of money isn't doing the trick for most. According to a report from Edelman Financial Engines, only about 33% of people with between $500,000 and $3 million said yes, they feel wealthy. Most said no.
A wealthy retiree in Australia generally has over $1 million in investable assets (excluding the family home), but for a truly high-net-worth individual, this can extend to $5 million or much more, allowing for a very comfortable lifestyle with significant income, travel, and assets, well beyond the ASFA "comfortable" benchmark (around $595k single/$690k couple for basic needs) and often without relying on the Age Pension, notes.
A: Generally, a net worth of $2 million to $4 million is considered upper class for Australians in their 30s, depending on income and assets.
From 1 July 2026, the investment earnings that relate to super balances over $3 million will be taxed at 30%, up from 15% at present. Earnings relating to the portion of super below $3 million will still be taxed at the current concessional rate of 15% (or nil for balances associated with pension accounts).
The top ten financial mistakes most people make after retirement are:
According to the Association of Superannuation Funds of Australia (ASFA), you need a lump sum of $595k as a single person or $690k as a couple to comfortably retire at age 67. This is based on a yearly budget of $51,630 for an individual and $72,663 for a couple.
Avoiding the tax means keeping your balance below $3 million on that date. Doing so could involve: Reducing holdings of volatile assets: to minimise the chances of sudden upward swings. Reallocating assets: limiting capital gains by favouring income-generating assets over capital gains (e.g. property).
Living off the interest of $3 million dollars depends on how the money is invested and how much risk you're willing to take. A portfolio held entirely in high-yield savings might generate under $120,000 per year, while higher-yielding assets like dividend stocks, REITs or annuities could produce significantly more.
A $3 million portfolio using the 4% withdrawal rule generates $120,000 annually before taxes. Combined with Social Security, that could mean a retirement income closer to $150,000 a year. That's enough for a comfortable lifestyle, but you still have to manage your money carefully.
While the average Australian household has a net wealth of $1,022,200, households in the highest quintile have an average net wealth more than three times this ($3,236,800). Households in the lowest quintile, however, are worth just a fraction of the average (3% of the average wealth, or $35,200).
How much money you need to be considered wealthy across the U.S.—it's over $2 million in most places. To be considered wealthy in the U.S., Americans say you need a net worth of $2.3 million in 2025 — but that number can be even higher depending on where you live.
In fact, Americans now think it takes an average of $2.3 million to be considered wealthy, according to a Charles Schwab report. The financial services firm surveyed 2,200 adults between the ages of 21 to 75 from April 24 to May 23, so a variety of generations offered their input.
Australians aged between 60-64 have an average super balance of $401,600 for men and $300,300 for women1. The Government Age Pension acts as a safety net to support the basic cost of living in retirement. However, it's still important to have a figure in mind as your ideal retirement savings goal.
A general rule of thumb is to have at least 10 to 12 times your annual income saved by age 67 if you plan to retire at this traditional retirement age. For instance, if you earn $150,000 per year, the retirement savings target would be between $1.5 and $1.8 million.
While exact real-time figures vary, estimates from around 2025 suggest approximately 400,000 to over 500,000 Australians held over $1 million in superannuation, with about 2.5% of the population reaching this milestone as of mid-2021, a figure that has likely grown with strong investment returns, though many more hold significant balances and millions are projected to reach this goal by retirement, especially men.
The short answer: to retire on $80,000 a year in Australia, you'll need a super balance of roughly between $700,000 and $1.4 million. It's a broad range, and that's because everyone's circumstances are different.
Financial Preparedness
To retire at 55, most people need at least 25–30 times their annual expenses saved. You may rely on taxable brokerage accounts early on, since 401(k) and IRA withdrawals before age 59½ typically trigger a penalty.
Some experts suggest that £500,000 in your private pension or savings is a sensible amount to aim for, if you live alone. According to the PLSA, you'd need £303,000-£490,000 in your pension pot for a moderate retirement and £540,000-£800,000 for a comfortable one – potentially more in London.