You can have a significant amount of super and still get an Australian Age Pension, with upper asset limits (including super) for a part pension being around $714,500 for a single homeowner, $972,500 for a single non-homeowner, and higher for couples, but it depends on your situation and assets, with payments reducing as assets increase until they hit zero at the threshold.
Technically, yes – but there are significant factors to weigh before pursuing this route. While spending down your super may reduce your assessable assets and potentially increase the Age Pension you're eligible for, it's crucial to consider how this could impact your financial security and lifestyle in retirement.
You can have significant assets, like savings in the bank, and still get the Age Pension in Australia, but it depends on if you own your home and your relationship status; for a homeowner, a single person can have up to $321,500 in assets for a full pension, while a couple can have $481,500, with higher limits for non-homeowners, before your payment starts reducing, according to Services Australia data from September 2025.
Retiring at 60 with $500,000 in superannuation is achievable for many Australians. However, whether it will support the retirement lifestyle you envision depends on factors like your cost of living, eligibility for the Age Pension, investment returns, and how long you expect to live.
To retire on $70,000 a year in Australia, a single person typically needs around $1.1 to $1.5 million, while a couple might need about $800,000 to $1.1 million, depending on retirement age (60 vs. 67), home ownership (assuming you own it outright), and the inclusion of the Age Pension. A good rule of thumb is needing roughly 15 to 20 times your desired annual income saved, with figures varying based on your lifestyle (modest vs. comfortable) and when you stop working.
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.
Yes, you can likely retire at 70 with $800,000, but it depends heavily on your annual spending, investment returns, and eligibility for government support like the Age Pension, potentially supporting a modest to comfortable lifestyle, though a very high-spending one might require more capital, according to wealthlab.com.au, Toro Wealth and Frontier Financial Group. Using the "4% Rule", $800,000 could provide around $32,000/year initially, but factoring in the Age Pension and lower expenses (like no mortgage/work costs) can make it stretch further, possibly supporting a single person's $44k-$50k/year needs.
Fewer people have $1 million in retirement savings than commonly thought, with around 4.6% to 4.7% of U.S. households having $1 million or more in retirement accounts, according to recent Federal Reserve data (2022), though this percentage rises for older age groups, with about 9% of those aged 55-64 reaching that milestone. However, the median retirement savings are much lower (around $88,000-$200,000), showing a large gap between averages and reality, with many retirees having significantly less, notes.
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A comfortable retirement will look different for everyone. While 7 figures in superannuation may sound great, the reality is most people heading into retirement won't have anywhere near that amount. Australians aged between 60-64 have an average super balance of $401,600 for men and $300,300 for women1.
Yes, you might still get a small part of a government pension (like Australia's Age Pension) with $1 million in assets, but it depends heavily on your living situation (homeowner/non-homeowner), relationship status, and current pension rules, as $1 million is generally above the cut-off for full pensions, though it's below the maximum limit for a part pension for couples in some scenarios. You'll likely qualify for less or no Age Pension, but you might still get a concession card, which offers utility and other discounts, say sources 2, 3, 6.
The happiest retirees have an average total monthly income of £1,700. To get at least that much a month, and assuming you retire at 65, you'll need to: Have a pension pot of about £172,500, after you've taken your tax-free cash. Be eligible for the full State Pension, which is currently £11,973 a year.
You can have a significant amount of super and still get a part Age Pension in Australia, with the cut-off for homeowners being around $714,500 (single) or $1,074,000 (couple), and for non-homeowners, roughly $972,500 (single) or $1,332,000 (couple) as of late 2025. These figures are part of the Assets Test, where higher assets reduce your pension amount, with payments stopping entirely once you exceed these limits.
You can keep your super in the accumulation phase for as long as you like. There's no legal requirement to move your super into pension phase once you meet a condition of release. But unless you have a strategic reason, leaving your super in an accumulation account may not be in your best interests.
The "3 rule retirement" typically refers to a conservative withdrawal strategy, like the 3% rule, suggesting you withdraw 3% of your savings in the first year and adjust for inflation, ensuring your money lasts longer, especially if retiring early or leaving an inheritance. Another concept is the Rule of Thirds, splitting savings into a guaranteed annuity (1/3), growth investments (1/3), and cash/emergencies (1/3), or the Three Buckets for managing cash flow (short, medium, long-term).
You can have significant savings before losing your Australian Age Pension, with limits depending on whether you own your home and your relationship status, such as a single homeowner having up to $321,500 in assets for a full pension, while non-homeowners have higher limits, and a part pension is available with even more assets, up to around $700k-$900k before payments stop. The key is that your assessable assets (excluding your primary home) reduce your pension by $3 for every $1,000 over the lower threshold, but you can still get a part pension with much higher assets.
The $1,000 a month rule for retirement is a simple guideline stating you need about $240,000 saved for every $1,000 of monthly income you want from your investments, based on a 5% annual withdrawal rate (e.g., $240,000 x 0.05 = $12,000/year or $1,000/month). Popularized by CFP Wes Moss, it helps estimate savings goals but ignores inflation, taxes, and other income like Social Security, so it's best used as a starting point for broader retirement planning.
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Believe it or not, data from the 2022 Survey of Consumer Finances indicates that only 9% of American households have managed to save $500,000 or more for their retirement. This means less than one in ten families have achieved this financial goal.
Once you have $1 million in assets, you can look seriously at living entirely off the returns of a portfolio. After all, the S&P 500 alone averages 10% returns per year. Setting aside taxes and down-year investment portfolio management, a $1 million index fund could provide $100,000 annually.
When asked when they plan to retire, most people say between 65 and 67. But according to a Gallup survey the average age that people actually retire is 61.
As the table above shows, $800,000 in savings can last between 20 and 30 years, depending on how much you spend each year. Using these calculations, if you retire at 50 and need savings to last for 30+ years until you are aged 80 or older, you can withdraw up to $40,000 annually, or approximately $3,333 monthly.
With careful planning, $750,000 can last 25 to 30 years or more in retirement. Your actual results will depend on how much you spend, how your investments perform, and whether you have other income.