How much will you actually spend in retirement?
Most retirement numbers start with a lump sum. This planner starts with what you'll spend, year by year, including the things the standard budgets leave out. Then it shows what that might take to fund.
Your results
This is a simple illustration, not an optimised plan. It applies one set of assumptions to your spending. It doesn't use the strategies a personalised plan would consider, such as contributions and tax planning before you stop work, how and when you draw on super and other savings, and how your money is invested.
Depending on your situation, a personalised financial plan may show you can retire sooner, spend more or need less. It may also show you need more. Talk it through with Stephen.
| Stop work at | Base case | Cautious case |
|---|
Total savings and investments needed when you stop work, in today's dollars. Base case: money lasts to age at % a year. Cautious case: lasts to age at % a year.
How you compare with the standard budgets
Your spending, year by year
Base case, in today's dollars.
Assumptions (you can change these)
The cautious case uses a return percentage point lower and plans to age (or your plan age, if later).
How the figures are worked out
- All figures are in today's dollars. Spending rises with inflation, and the return shown is reduced by inflation to give a real return of about % a year.
- Your savings earn the same return every year and spending is drawn at the end of each year. Real returns go up and down, and a run of poor years early in retirement can make a large difference.
- No tax is deducted. That's broadly how super works once it's paying a pension, but earnings on money outside super are usually taxed, which would increase the amount needed.
- The Age Pension estimate uses current rates and thresholds (as at ), assumes you own your home, that both partners reach 67 in the same year, and that your savings are your only assessable assets and income. Your real entitlement may differ.
- The amount needed is the smallest balance that keeps your savings above zero every year and leaves any inheritance and reserve untouched at the end of the plan.
- Benchmarks: ; . The SCA targets assume the Age Pension pays for much of retirement spending.
What this planner doesn't do
This is a simple tool. Please read these limits before relying on any figure above.
- It isn't personal advice. It doesn't consider your objectives, financial situation or needs.
- It doesn't look at your actual super, investments, property, insurance, debts or tax position.
- It doesn't optimise anything. It uses no strategies for contributions, tax, drawing on super and other savings, or how your money is invested.
- It doesn't consider when you can access super or the rules for drawing on it.
- It assumes the same return every year, so it doesn't show the effect of market falls, especially early in retirement.
- It ignores tax on investments held outside super.
- Its Age Pension estimate is simplified and assumes you own your home.
- It doesn't recommend any financial product.
- It isn't a forecast or a guarantee. Small changes in returns, inflation or spending can change the results a lot.
Your link holds your figures in the web address itself. We don't store them anywhere.
What to do with this
Get the five-email follow-up
Five short emails over two weeks on what this planner can't tell you: the years between 60 and 67, why high earners underestimate their spending, and what the range really means.
Talk it through
If you'd like to know what your results mean for you, book a free 20-minute call with Stephen. No preparation needed.
Ready to go further?
A 2-hour consultation looks at your actual situation: what you have, what you spend, and what it would take to retire when you want to. The fee is , offset against your advice fee if you go ahead.
Guided Wealth works with households preparing to retire who have at least $400,000 (single) or $600,000 (couple) in super and investments.